Thorough SWOT Analysis of ANZ – One Of The Big Four Australian Banks

Quick Stats on ANZ

Founder	George Kinnear
Year Founded	1951
Origin	Australia
No. of Employees	40,211
Company Type	Public
Market Cap	A$ 56.82 Billion (2021)
Annual Revenue	A$ 13.13 Billion (2021)
Net Income/ Profit	A$ 6.16 Billion (2021)

 

Products & Services by ANZ

ANZ provides different services to keep its consumers satisfied. ANZ is one of the topmost banking groups in the world. Below mentioned are some of the ANZ products and services.

• Personal and commercial banking
• Wealth management
• Investment services
• Financial planning 
• Credit cards 
• Insurance 
• Mortgages 

Competitors of ANZ

ANZ brings a huge competition for itself, as it provides services in the whole world. Below mentioned are some of the competitors for ANZ:

• Westpac banking 
• BNZ bank 
• HSBC bank 
• Commonwealth Bank of Australia 
• The Royal Bank of Scotland 
• OCBC bank

Now that we have some idea of how ANZ works, let’s focus on a detailed SWOT analysis of ANZ.  

SWOT Analysis of ANZ

SWOT analysis of ANZ is the study of strengths, weaknesses, opportunities, and threats of the company. This will help the company understand strong factors for their growth, weakness, and threats to rectify them for further growth. 

To better understand the SWOT analysis of ANZ, refer to the infographics below:

Below is a step-by-step detailed guide to help you with the SWOT analysis of ANZ.

Strengths of ANZ

Certain abilities of an organization that are advantageous in capturing market share, attracting more customers, and maximizing profits can be called the strengths of that organization.

• Extensive Network: The bank has more than 40,000 employees with a global presence of 34+ countries with a very wide range of products and services.
• Wide Range of Portfolio: The variety of products and services the bank offers acts as one of their strengths wherein they can be benefited from one of the products even if another product fails in the market.

(ANZ Digital Key Application on Google Play, Source: Google Play)

• Brand Reputation: ANZ has been in the business of banking for a large number of years. Also, with the variety of secure services, it provides such as the digital key application of ANZ which is backed with secured digital channels to provide its users to securely transact with ANZ. These big steps made ANZ as established as a leader in the industry. This helps the corporation to gain a reputation and get recognized easily.

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• Strong Digital Marketing Strategy: With a very strong online presence on every social media site has built a strong customer relationship. Want to know how social media works as a strength for ANZ? Then you must check out the benefits of social media marketing to get the answer to your query. 
• Best in its Country: The Bank is the best bank in Australia and New Zealand in terms of commercial and retail banking. 
• Goods Returns on Capital Expenditure: ANZ is relatively successful at executing a net income of A$ 6.16 billion from annual revenue of A$ 13.13 billion.

Weaknesses of ANZ

Weaknesses are the areas where ANZ can improve upon by building strategies. Below mentioned are the weakness of ANZ:

• Limited Success Across the Core Business: Although ANZ is one of the leading organizations in its industry it faces challenges in moving to other product segments with its present culture.
• Cash Flow Problems: There is a lack of proper financial planning at ANZ regarding cash flows, leading to certain circumstances where there isn’t enough cash flow as required leading to unnecessary unplanned borrowing.
• Need to Invest More in New Technologies: According to the country’s scale of expansion and the geographical areas ANZ needs to invest more money in technology to integrate the processes across the board. Currently, the investment in technology is not on par as per the vision of the company.
• Customer Service: Improper customer service, as well as lack of solving customer queries, can cause a negative image of the brand. This can either be through mouth publicity or by any other means.
• Depending on Australia & NZ: ANZ’s global presence is not up to the mark. The bank is dependent more on Australia & NZ. Also, the ANZ lags behind the top Australian banks in terms of several branches. 

Opportunities for ANZ

Opportunities are external factors that allow an organisation to grow and be more profitable. Following are some opportunities for ANZ:

• Expansion to Other Global Markets: The company is planning to expand to more developing countries. This serves them as an opportunity to acquire a new customer base.
• Development of Technology: Since the FinTech industry is growing at a very rapid pace, there are advancements in technologies too. Using these kinds of technologies can increase efficiency and decrease cost.
• Increasing Income: There has been an increase in average household income along with an increase in consumer spending following the recession. This will result in growth in the ANZ’s target market with new customers that can be attracted to the business.
• Population: The population has been growing and is expected to grow at a positive rate for the upcoming years. This is beneficial for the ANZ as there will be an increase in the number of potential customers that it can target.
• Interest Rate: Lower interest rates than compared to previous years provides an opportunity for the ANZ to undergo expansion projects that are financed with loans at a cheaper interest rate.
• Low Inflation Rate: The low inflation rate can bring more stability in the market and enable credit at a lower interest rate to the customers of the ANZ.

Threats to ANZ 

The threats faced by the ANZ are listed below:

• Currency Fluctuations: As the company is operating in numerous countries it is exposed to currency fluctuations especially given the volatile political climate in a number of markets across the world.
• Competitor Technical Advancements: New technological advancements by a few competitors within the sector constitutes a threat to ANZ since customers who are drawn to this new technology may switch to competitors, reducing ANZ’s overall market share.
• Pandemic: Financial losses incurred by companies as well as individuals can cause a threat to the bank in repayment of loans. 
• Increased Marketing Efforts: Due to the rise of digital marketing, there is an increasing number of promotional messages which are being sent by competitors. It clutters up the space, which leads to losing out on customers. ANZ is well versed and trying to adopt a variety of the latest digital marketing skills to get ahead of the competition. You must also check out these skills to achieve the same. 
• Controversies: ANZ has been in more than 10+ controversies including manipulation of interest rates, child labour, defamation case and many more. Recently, ANZ Bank paid a fine of A$25 million to the nation for giving fake promises of benefits to customers.

This ends our thorough SWOT analysis of ANZ. Let us conclude our learning below.