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Business challenge

Australia and New Zealand Banking Group


(ANZ) saw an opportunity to elevate its
relationships with clients and fuel growth by
gaining a single view of its customers across all
countries and channels.

Transformation
A set of master data management solutions is
helping ANZ gain a holistic view of its clients
both within markets and across regions
enhancing customer service, streamlining
operations and facilitating compliance.

Business benefits:

Reveals

opportunities to optimize
offers by analysing customer
relationships globally

Combats

fraud by streamlining Know


Your Customer processes
and simplifying reporting

Enhances

customer service by
accelerating client
authorisation checks from
3 hours to 30 seconds

ANZ

Driving super-regional
business growth
with new insight into
customer relationships
Founded in 1835, Australia and New Zealand Banking Group (ANZ)
provides a range of banking and financial products and services to over
9 million customers and employs more than 50,000 people worldwide.
The bank operates in 33 countries and aims to grow its business in Asia
Pacific, Europe and America through a combination of super-regional
capabilities and deep understanding of its customers.

Nick Reed,
Group Head of Risk & Finance
Infrastructure, Projects & Strategy,
ANZ

A global view of our


clients helps us find
new ways to add
value, win business,
and combat fraud.
Nick Reed, Group Head of Risk & Finance
Infrastructure, Projects & Strategy, ANZ

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Historically, most banks have built their


businesses around their products: the
financing team deals with loans, the
investment team deals with funds, the FX
team deals with foreign exchange, and
so on. But what happens when a client
asks the same bank to grant it a loan,
manage its investments, and provide
advisory services? And what about when
that client takes the loan out in Australia,
makes investments in Singapore, and
needs advice in China?
The problem with a product-centric
approach is that it tends to establish silos,
where each team focuses on its own
products and its own local markets, with
little visibility of what other parts of the
business are doing. Customer service
suffers as a result, as clients are often
asked to plough repeatedly through the
same bureaucracy, and provide the same
information multiple times to different
parts of the bank.
At the same time, this lack of visibility
can compromise both growth and risk
management. If a bank cant understand
its clients needs in a holistic, superregional way, it cant offer the right
products and services to help them
succeed. If it cant easily see patterns in
clients behaviour, it can fall victim more
easily to fraud. And if it cant gain a full
overview of its processes, it becomes
harder to prove that its operations are
compliant with anti-money-laundering
and know your customer legislation.

Adopting a superregional strategy

Finding the right


way forward

To support its clients and respond to the


changing needs of international trade,
ANZ is becoming a super-regional bank.

ANZ embarked on a journey to gain


greater control of its customer information
through master data management.

This means establishing closer links


between its operations in Australia
and New Zealand and its international
businesses in the Asia Pacific region, the
Americas, and Europe.

It began with a project to create a single


system of record that would provide a
comprehensive view of its commercial
banking customers in Australia and New
Zealand. The success of this project
coincided with the creation of a similar
system for the banks retail customers.

Developing super-regional capabilities will


enable a more client-centric approach,
where each client relationship can be
fully analysed to take advantage of
opportunities, improve service levels,
facilitate compliance, and mitigate risk.
Nick Reed, Group Head of Risk & Finance
Infrastructure, Projects & Strategy at ANZ,
comments: The first step in developing
super-regional services is to gain a single
view of the customer and thats a big
challenge. We have at least 50 systems
that hold customer data, and we needed
to find a way to knit them together into
a full picture of our relationship with
each of our clients. The answer was
master data management.

Master data management and data


quality can seem like dry, technical
topics, but the benefits for the business
are tangible and important, says Nick
Reed. These two initial projects gave
us a much better understanding of who
our customers are, which means we can
provide a better service in hundreds of
different ways.

To take just one example, were


improving first-call resolution rates in our
commercial banking business. When a
client calls us, it only takes a few seconds
to check that they are authorised to act
on behalf of their company.
Previously we had to do a lot of manual
checking and then call them back to
confirm, which could take up to three
hours. Now we can get on with doing
business, which is better for everyone.

We can talk to our clients in their


language, understand their key
concerns and needs, and find
opportunities to provide a better
service.
Nick Reed, Group Head of Risk & Finance
Infrastructure, Projects & Strategy, ANZ

Taking the next


step with a global
customer register

The register has definitely streamlined


the know your customer process,
says Nick Reed. This saves time for our
clients, avoids unnecessary bureaucracy
for the bank, and makes it much easier
to ensure and demonstrate that we
are fully compliant.

The next evolution of ANZs master data


management strategy aimed to support
the banks super-regional objectives, by
providing a single view of its customers
across all global operations.
However, there were two challenges.
First, it would be a hugely complex
task to adapt all of its global systems to
draw data from a single repository. And
second, in several of the countries in
which the bank operates, data protection
regulations forbid storing citizens data
outside of their national borders. So
even if a single system of record were
technically possible, it would not be legal
to use it to manage the entire global
customer data-set.
With help from IBM, we found a
solution, says Nick Reed.
Patrick Maes, Chief Technology Officer
at ANZ, adds: From our work on the
broader enterprise strategy, the key
insight was that we didnt actually need
a single global master repository for all
of our customer data. We just needed a
registry that would act as an index, linking
all the records in our existing systems to a
unique ID for each customer.

Gaining insight into


specific customer
needs
The bank is now working on extending
the register to include hierarchies of all the
client entities that it works with.

That meant we wouldnt have to change


our existing systems, and all the data
could remain in-country only the index
would need to be centralised. And we
could still build local master data solutions
in each country to hold more detailed
customer data-sets.
ANZ worked with IBM to build a global
customer register, which puts it on the
cutting edge of MDM technology. The
register enables users all over the world
to search for customer records in all of
the banks systems, and identify which
clients are working with which parts of
the business in which geographies.

Streamlining know
your customer
processes
The register is already being used
in the bank to support know your
customer processes.
When an ANZ relationship manager
in one country wants to bring a new
client on board, they can find out within
seconds whether that customer already
exists in one of the systems in another
country, and if they have been completed
the know your customer process already.

We often work with multiple subsidiaries


of a company in different countries and
regions, explains Nick Reed. With
hierarchies, we will be able to analyse the
business that we do with each company
on many different levels. If were talking
to a client who is responsible for their
companys Malaysian operations, we can
quickly get a view of that portion of the
relationship, whereas if were talking to
their Group CFO, we can see the whole
picture. That means we can talk to our
clients in their language, understand
their key concerns and needs, and find
opportunities to provide a better service.

Improving data
quality
The register also provides a sophisticated
matching engine that analyses any
discrepancies in customer data between
systems, providing a best guess for
the correct version of the data and
highlighting systems where data quality is
likely to need improvement.
Customer data changes all the time
there are always changes of address,
telephone numbers and names, says
Nick Reed.

With records held across more than


50 systems, it is inevitable that some of
the data will become out-of-date. Now
we can see where the problems are and
prioritise our data improvement projects
to ensure that they make the most impact
for the least cost.
This new spotlight on data quality is
also helping to drive a cultural change
showing people how important it is to
get the data right first time and keep it
updated and accurate.

Enhancing
customer service
Nick Reed concludes: Each step we
take towards a unified view of customer
data gives us a more detailed picture of
how our client relationships work, where
the opportunities are, and how we can
grow our business as we help them to
grow theirs. Having all the data at our
fingertips will also give us a much greater
ability to use analytics to combat fraud,
manage risk and facilitate compliance.
Above all, it will help us deliver on our
super-regional strategy helping ANZ
achieve its growth targets across the Asia
Pacific region.

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