Celebrating its 160th anniversary this year, ASB Bank continues to win awards for its innovative financial services

Beyond technology, people are at heart of vision

Technologically advanced ASB Bank is constantly awarded for its innovation and customer service. An industry leader, with NZ$48.6 billion in total assets, ASB aims to stay one step ahead with its unique vision, says managing director Hugh Burett (INTERVIEW).

What do you think defines New Zealand’s approach to business?

I think our size is an advantage. Whether you talk about a business or a country, as you get bigger you need more of a rigid structure and framework. That tends to stamp out innovation. I always take the view that policy is a guideline and that if a customer has got a reasonable request that doesn’t expose us to too much risk, then we should change the policy and do what’s appropriate for the customer. That’s a hard culture to breed but it’s important to have that common sense, can-do attitude.

ASB celebrated its 160th anniversary in June 2007 and continues to win awards, in part, because of innovative financial services. What is the importance of innovation in the banking industry?

I think it is important to challenge what you do and why you do it every day. You have to invent new ways of doing things. You can’t strip costs out of a business forever so the only way to become more efficient is to change how you operate. That means you have to innovate. It comes back to how we manage our culture and our people, and how we encourage our people to innovate. Another of the things we do is to try and look at things from the customer’s point of view. Ultimately, people are the strength of any organisation.

New Zealand banks are often more technologically advanced than their UK counterparts. What can the UK banks learn from ASB?

Many banks have developed isolated systems for different segments of the banking group that don’t talk to each other. We were fortunate as an organisation when we started off because we could develop a great online system and database from scratch so that we can go into any one of our terminals and pull up a customer, be it an individual, a farmer, or a business.

In other words, beyond technology are people, the clients and employees who are at the heart of your vision.

We have a very well understood and articulated vision to be New Zealand’s best bank and financial services provider, excelling in customer service. I believe that whilst we can be very smart and slick with technology, other organisations can copy all of these things. That’s why I come back to saying the one sustainable competitive advantage you can have is customer service. Part of our vision is that we want to look after people’s financial needs from the cradle to the grave. That goes from savings to investment, covering your risks from insurance and perhaps, in time, providing the old folks home for them.

ASB Bank was chosen as the Government’s default provider for the recently launched KiwiSaver superannuation scheme. What advantages can the scheme bring?

I think it is a good thing for the country because it will raise awareness of investment. Kiwis do not currently have a good understanding of the share market, it’s seen as something risky. I’d like to see a better understanding and more investment in the share market. This will be one of the results of the superannuation scheme. I think that will be good for New Zealand and New Zealanders.

How do you see ASB’s relationship with overseas markets?

As we become more globalised we’ll see more investment across borders until you get to the point where you just talk about investing in the world. Some people invest here, some there. I foresee a blurring of the lines to the point where it is just one big investment pot.