A big four bank has announced that it will suspend providing new secured asset finance loans to retail customers in Australia while it undertakes a detailed review of its business.
ANZ revealed today that the suspension includes loans provided for motor vehicles, boats and caravans for retail customers and covers both direct and broker-originated channels.
ANZ will continue to service its existing consumer asset finance customers and will continue to provide customers with access to personal loans during the suspension.
Its asset finance product for commercial customers is not impacted by this change.
“Given the increased technology costs required to effectively compete in the secured consumer asset finance market, we have decided to suspend all new loans while we conduct a detailed review of the business,” ANZ managing director retail distribution Catriona Noble said.
“Our secured consumer asset finance product represents less than 1 per cent of revenue within our broader Australian business, so we need to assess if it is better for our customers, shareholders and employees if we focus our investment on areas of our business that are core to what we do.
“Providing asset finance solutions for commercial customers remains a core business for ANZ and we will also continue to service existing retail customers for the duration of their loans.”
The suspension of new loans is effective on 30 April 2018. The review is expected to be completed by 30 September 2018.
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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