regional focus
Smooth operations
Clean credit
Perhaps the biggest news in the
Australia/New Zealand region today is
the planned arrival of new IT systems.
Jonathan Macleod, Sydney's chief oper-
ating officer reports.
Results across the board
Regional cohesion
What'sNewS Issue 4-July/August 2001
Set for roll-out in the next
year, the new platform will
bring sweeping change across
the region, and tackle one of
the biggest challenges: main-
taining and improving customer
service with aging systems dat-
ing back to the late 1980s.
Comments Macleod, 'invest-
ment in new systems is required
to support and sustain the business
growth and success we've achieved. This is
about the right 1T and operational support
to match our business progress.' With the
revamped core system come numerous
In general, Australia and New Zealand
have maintained a very clean record in
terms of credit. With the exception of
one loan to a New South Wales Govern
ment Statutory Authority, a very low
level of problem loans have occurred.
What's the secret to this success? Phil
Hislop, general manager credit for the
region, explains what it takes to keep
the good credit in, and the bad credit
out.
Four credit units in Australia and New
Zealand ensure books in the region are
kept clean. They are:
- corporate credit (for Australia and
New Zealand)
- rural credit Australia (includes equip-
rnent finance credit)
- rural credit New Zealand (includes
equipment finance credit)
- food and agribusiness banking credit
(for Australia and New Zealand)
- all credit units are headed up by Hislop.
advantages: automation of many rnanual
administration and service processes, cen
trally managed cliënt services and back of
fice operations, a broader product and
channel offering with standardized
processes across the region. The result?
More efficiënt opera
tions and improved
service to clients. 'Right
now account managers
and support areas are
often bogged down with
excessive paperwork
and administrative du-
ties,' explains Macleod.
'Time and costs in-
volved can be seriously
cut back with the
changes planned to our
cliënt service operating
model. More impor-
tantly, account managers will have more
time in the field with clients, where we re-
ally need them to be.' Rural clients will
appreciate Internet banking possibilities,
allowing them to do their financial work
24:7. 'If we want to position ourselves as
a crucial part of our customers' business,
we need to demonstrate we're thinking
with and for them,' Macleod explains. 'It's
inconvenient for farmers to bank during
office hours - that's why we need to bring
the bank to them, allowing them to do
their business in the evening or on a rainy
Sunday. This is really creating a competi-
tive edge for RI in the region.'
Improved IT operations also suits the re-
gion's geographic needs - with branches
functioning in remote areas, and three
time zones between Perth, Sydney and
Wellington, increasing connectivity is a
major plus both internally and externally.
'We'11 all be operating on the same page,
using the same processes, and implement-
ing the same standards,' reports Macleod.
In November limited Internet banking ca-
pabilities will be rolled-out in Australia,
with total core system replacement taking
place throughout 2002.
'Basically, we're very selective about
who we choose to do business with,'
Hislop explains. 'We'11 only deal with
the "better" (as dcfined by experience
and financial strength) farmer/agribusi-
ness in this region. The bank's staff are
well-skilled to make these
distinctions - staff generally
have a deep understanding
of agriculture, many are
experienccd bankers. Be-
cause the risks in agricul
ture in this part of the
world range from usual is
sues such as commodity
prices to events such as
drought, floods and bush-
fires, we must follow a
strategy of only focusing
on the better cliënt.' lf
clients do experience some difficulties, a
representative of the credit team will
visit them at an early stage. In some
Credit's Phil Hislop
cases this requires many hours of travel
to properties that are 'miles from any-
where', but it's just part of the job.
While the geographic size of Australia
may sometimes cause travel woe, it also
serves a greater purpose in managing
risk. With such diverse cli-
mates, the bank can main-
tain a well-balanced port
folio, with loans to clients
from various sectors such
as sugar cane, bananas,
cattle, cropping, sheep,
wool, dairying etc. How
to go on from here? 'As
we continue to grow our
business in the region, we
will maintain our policy
of only dcaling with the
better agricultural entity,'
Hislop emphasizes. 'We have no prob
lem leaving the "ordinary farmer/
agribusiness" to the other banks.'
Jonathan Macleod
