NationMaster - Encyclopedia: ASB Bank

ASB is one of New Zealand's largest banks, with branches throughout the country. It also has insurance and securities arms. Image File history File links This is a lossless scalable vector image. ... 1847 was a common year starting on Friday (see link for calendar). ... Finance and Insurance is an industry group that mainly handles the transfer of paper and money, financial assets. These include: Accounting, Asset Management, Electronic Communications Networks, Financial Services Regulatory Agencies, Investment Banking Investment Firms, Investment Funds, Lending, Outsourced Financial Products & Services Marketing, Securities Brokers & Traders, Stock Exchanges, Trade Facilitation, and... A holding company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors. ... The Commonwealth Bank of Australia (commonly just the Commonwealth Bank) is the second largest bank in Australia, after the National Australia Bank. ... A Web site (or colloquially, Website) is a collection of Web pages, images, videos and other digital assets that is hosted on a Web server, usually accessible via the Internet or a LAN. A Web page is a document, typically written in HTML, that is almost always accessible via HTTP...

ASB also operates BankDirect, a branchless banking service that provides service via phone, Internet, eftpos and ATMs only. The Opening BankDirect is an internet and phone based bank offering a range of products to personal banking customers. ... EFTPOS (Electronic Funds Transfer at Point of Sale) is a device by which sales transactions can be directly debited to the customers bank account at the point of sale, through the use of a debit card (sometimes the same card used with Automatic Teller Machines). ... An NCR Personas 85-Series interior, multi-function ATM in the USA An automated teller machine or automatic teller machine (ATM) is a computerised telecommunications device that provides a financial institutions customers a method of financial transactions in a public space without the need for a human clerk or...

The Auckland Savings Bank opened at 7pm on Saturday 5 June 1847, on a site where today stands the facade of the old Bank of New Zealand, on Queen Street. The first president of the ASB was Governor George Grey, lately arrived from South Australia.

If the Trustees expected a rapid flow of deposits into their Bank, they were to be sadly disappointed. The Managers "having sat one hour and no business offering, the doors were closed". In fact two weeks passed "with no business offering", but at last, on Saturday 19 June, Matthew Fleming deposited £10, a deposit eagerly accepted by teller/accountant James Dilworth, who was also a founder and trustee of the Bank.

Business remained slow for several months and it is reported that by the end of the year, the Bank's balance was a mere £166.4s.0d. gathered from a group of customers comprising 14 Pakeha and 7 Maori.

The Bank's management, despite the slow pace of business, did however appoint their first employee in May 1848. Andrew Kerr was appointed accountant on the princely salary of £25 per annum.

As Auckland grew and prospered so too did its Savings Bank and by 1853 there was more than £100 in the Statement of accounts. The surplus was not permitted to be divided amongst the depositors by order of New Zealand's Attorney General.

In the early 1850s the ASB became involved in an activity which has become one of its most sought-after services ever since, mortgage finance. The first loan was made for £400 on a 60 acre farm on the corner of Mt Eden and Balmoral Roads. Until World War II, mortgage funding remained the major form of investment of funds, and land agents at the time repeatedly stated that because of the easy terms of an ASB mortgage, there was no difficulty in selling a house that was subject to a Savings Bank mortgage.

By 1859, the Trustees of the ASB were confident enough about the Bank's future to buy a section in Queen Street for a new building to house the Bank's operations. They then invited the public to offer designs for the new building, with a prize of £20 being offered for the best design. Due to the short space of time between the opening and closing days of the competition, only 11 entries were received.

It was expected that the change of location would be welcome to the Bank's customers and a statement on the anticipated move read:

"This change of locality and extra number of days of attendance will, we doubt not, be very welcome to our artisans and domestic servants, and lead to a greatly increased number of depositors."

At the same time as this development, a decision was made by the Bank's management to install a telephone system, and reduce mortgage interest rates from 10% to 7%. Almost immediately there were 40 applications for mortgage loans.

Also hotly in demand was another banking product which encouraged thrift among the community's younger banking public, the Penny Bank. When the Penny Bank account was introduced in 1876, five new accounts were opened on the first day alone - without the benefit of modern advertising methods.

It was also decided that a policy of expansion was justified, given the growth of Auckland and the increasing popularity of the Bank, and in 1879 the first branch office was opened in the suburb of Onehunga.

With its future looking very bright the new ASB Head Office was opened with due pomp and ceremony in 1862, and extended in 1884. Already the Bank enjoyed the community's affection and confidence and the good opinion of the news media. In 1875 the NZ Herald printed encouraging comments:

"Among the signs of progress there is, however, none which speaks more eloquently for the general welfare of the people than the prosperity of the Auckland Savings Bank... We have selected the Savings Bank as a gratifying proof of the general prosperity and comfort of the people...

Proof of this prosperity came in 1900, when for the first time, the volume of transactions exceeded £1 million.

The Bank, in recognition of the special place it held in the hearts of Aucklanders, also decided that action needed to be taken to direct excess funds into important community projects - a way of returning value to its own customer base.

In 1906, after many years of government lobbying, a Special Bill was passed enabling this transfer and the Bank passed over a very generous £10,000 cheque for the erection of a Technical School in Auckland's Wellesley Street.

The First World War presented one of the first major problems for the ASB. Until this time, tellers were exclusively male, but with the advent of war, young men were suddenly in demand for more vigorous activities. The Bank in true Kiwi spirit decided to pay half the salary of its bank staff going overseas to serve their country - but left the Bank without staff. So, in an unprecedented move for New Zealand's banking community, the Bank employed its first female staff. The ladies were not permitted to serve customers however, but were confined to perform tasks such as typing and adding machine work.

Continuing its policy of community service, the ASB donated £2,500 to the Government for the War Expense account. Further donations were also made by the Bank for the relief of local distress caused by the War, and to the Red Cross. In recognition of the efforts of New Zealand servicemen and women, the Bank donated a very considerable £50,000 for the building of the Auckland War Memorial Museum.

The roaring 20's was a decade of expansion for the ASB. Five new branches were opened, and with the rise of prosperity following the war, applications for mortgages were extremely heavy. Throughout this period, local body development (suspended during the war years) began again in earnest and the Bank granted substantial debenture loans to help finance city projects. Passing of the Savings Bank Amendment Act in 1923 meant increased independence for the ASB , and gave the Trustees the power to establish superannuation and provident funds. The first superannuation scheme was set up for Bank staff in 1925.

1925 and 1926 were also notable for the introduction of Thrift Club and School Bank schemes, both of which met with huge public acceptance. The Auckland Star was moved to comment:

"If the Bank can make any headway in restoring to the juvenile mind that there really is virtue in thrift, it will have added one more to the very real services it performs for the community."

ASB continued to help the development of Auckland and its people through the next few years, donating money to dozens of organisations, especially in the area of health and welfare. By the end of 1931, the ASB had donated £131,000 from surplus profits, not only helping the city but also easing the pressure on Central Government for direct assistance.

It therefore came as something of a shock when in 1933 it learned that trustee savings banks were no longer exempt from income tax. In a statement more in keeping with modern politicking, the Minister of Finance excused the action saying that the onset of the Depression had sorely depleted the Government's coffers and that every effort was being made to "balance the budget". The tax law was not removed when the Depression lifted.

Despite this setback, the Bank extended its own kind of help to Depression victims. At the end of this trying period, it was with some pride that trustees could claim that no mortgagors who were the victims of circumstances beyond their control suffered for lack of sympathetic consideration.

As with the First World War, the 1939-45 conflict saw ASB offering its wholehearted support to the war effort by issuing a prospectus and calling on citizens to subscribe. In recognition of its efforts, the Bank was constituted an agent of the Reserve Bank, so that its depositors could transfer savings to war loans without having to withdraw cash. The ASB also enthusiastically marketed war bonds.

At the end of its first 100 years of operation, the Bank was in a firm position as the leading retail bank of the region. In its Centennial Year, 1947, the Bank held over £20 million in deposits.

Following World War II (as happened after the First World War) the Bank and the community it serves experienced a period of prosperity and expansion.

Throughout the 1950s and 60s the Bank continued to increase depositors' funds while building more branch offices. By 1960 total depositors funds stood at nearly £44 million, and by the middle of the 60s the Bank's branch network spread from Pukekohe and Waiuku in the south right up to Kaitaia in the north.

In 1965 the Board of Trustees petitioned the College of Arms in London for the Bank's own Coat of Arms and in the following year the Arms were duly granted.

The significance of the arms is that on the chief of the shield Rangitoto Island, with the rising sun in the background, depicts Auckland where the Bank both operates and had its beginnings. The fess (horizontal centre strip) in blue represents the harbour. In the base of the shield the portcullis with chains attached is an heraldic charge to denote a guardian of treasures, an important function of the Bank. The crest, (a term that many people wrongly take to mean a whole coat of arms) consists of a kauri tree, representing Northland, a zone in which the Bank also operates, this being in front of a castle in gold intended to denote security. The shield is supported by a blue marlin and a tui, both of which are distinctive of New Zealand.

Towards the end of the decade the Bank made a bold and far-sighted decision, to install a computer system which would link its entire network of branches directly to a main computer. This system of linking terminals live to a main frame computer is known as on-line real-time and enables customers to update their accounts instantly, regardless of which branch they call into. This innovative adopting of technology immediately took the ASB far ahead of its competitors. Constant improvements have helped maintain this position throughout the following decades.

With this readiness to take on new technology, the Bank has been able to develop an extensive array of products and services, often before its larger rivals. One such product was the Omni account. This was based on the cheque account, incorporates investment account features and provides a comprehensive financial report on the customers dealings with the bank. So advanced was this concept that even overseas banks registered interest in the product.

Automation was now becoming increasingly accepted in many areas, including banking. The concept of banking through machines took on readily in New Zealand. This was then followed by the introduction of EFTPOS (Electronic Funds Transfer at Point Of Sale) where customers could pay for petrol, groceries etc by using their teller machine card and have the funds automatically transferred from their own account to that of the service station or supermarket. They could have the security of their personal identification number but without having to use cheques or cash. By the middle of the 80s a large proportion of the more basic transactions and operations were handled by computer. The emphasis was shifting increasingly from operations to customer relations.

During the 70s and 80s the ASB, and the corresponding savings banks throughout the rest of the country, formed an association. This enabled a pooling of resources in such things as servicing one another's customers when they travelled around the country, and national advertising. As time went by this association became more formalised. Then finally, when deregulation of the finance industry became imminent, an amalgamation of the various banks was achieved, each individual bank being a subsidiary of the Trust Bank parent company. Auckland Savings Bank was renamed ASB Trust Bank.

However New Zealand's economy began to change. The face of banking was radically altered so that the marketplace was no longer the preserve of a limited number of traditional trading and merchant banking groups - and the ASB wanted to be a major contender in this new banking environment. To achieve the competitiveness it wanted, the ASB found it necessary to depart from this new Trust Bank group. Part of this move involved a second change of name. It would have been wrong to have returned to the name Auckland Savings Bank - it was no longer just the savings bank this name implied. So, to maintain its strong and proud historical links with its region, but without having to take a backward step, the Bank formalised the familiar initials ASB into its new title. However, this was not enough by itself, if a future role as a full service bank was to be reflected in the title. So, in 1987, the Bank announced its new name, ASB.

At the same time as it announced its new name, ASB unveiled its new corporate image. The Bank had a new logo, based on its Coat of Arms granted back in 1966. In addition, branch premises, stationery and merchandising material all underwent a total refurbishing in bold new colours. Staff were attired in a new corporate wardrobe created by one of the country's top designers. The new colours of grey and yellow were chosen to reflect the character and aims of ASB. Grey to represent its professionalism as well as the security of nearly a century and a half of history and a safe asset base that makes for low risk banking. Yellow to represent the future as a progressive, innovative and friendly bank.

In 1988 the Trustee Banks Restructuring Bill, aimed at establishing such banks as public companies, on an equal footing with other financial institutions, passed its final stages in Parliament and came into force on 1 May.

The ASB Community Trust was then appointed by the Minister of Finance, followed a month later by the appointment of the Bank's first Board of Directors of ASB Bank Limited. The ASB Community Trust became the new owners of the Bank and also took over the philanthropic role of distributing donations throughout the community.

While all this was happening the Bank's management were looking to the future. Although ASB was deeply rooted in its own area of operation, it needed to expand in order to compete against large rivals with international backing. The best way to achieve this was to find an existing institution who possessed this sort of international base, who wished to have a New Zealand presence, but who would leave this side of their operation to function autonomously.

Such a partner was found in the Commonwealth Bank of Australia. Their aims coincided almost exactly with those of ASB. In February 1989 Commonwealth Bank of Australia purchased 75% of ASB shares from the ASB Community Trust.

In August 1991, the then Governor General Dame Catherine Tizard opened the ASB Centre. Built at a cost of $200 million, on the corner of Wellesley and Albert streets, the Bank's new head office was a joint venture with Fletcher Construction. The very latest in technology was used both in construction methods and in the equipment and furnishings within the finished building.

The 29 levels above the ground were clad in contrasting granites and the surrounding plaza featured a spectacular waterfall cascading from the Federal Street level down to the Albert Street level. The tower also boasted a heliport and fibre-optic communications system and provision for a satellite dish.

Located out of sight but with discreet views of the lobby, was Auckland's most sophisticated security system - staffed 24 hours a day with comprehensive closed circuit coverage of the entire building.

Other amenities included a cartdock (on one of four basement levels) adjacent to the goods service lift to provide easy access to each floor for bulky items.

For the community inhabiting the ASB Centre there was a cafeteria serving hot and cold meals, as well as a squash court of international standard and a fully equipped and professionally managed gymnasium.

By the end of the 1980s the then ASB had established a number of new facilities. Firstly it set up a treasury operation where dealers had access to the world's foreign exchange markets at the touch of a button, a Commercial Banking arm, involving 6 Commercial Centres throughout Auckland and Northland, and a Corporate Banking division.

With this radical transformation both in the Bank itself, as well as New Zealand's whole financial sector, it became increasingly important for those who wished to compete successfully, to adopt intelligent planning procedures. ASB realised this only too well and so in 1987 set up a special department to undertake strategic planning on an ongoing basis - not just for the short term but well into the next century.

This planning was soon to prove its worth, as the question of whether the Bank wished to remain a regional bank or expand to cover the whole country, needed to be answered. The Bank clearly saw that to have a healthy future it needed to be able to compete on an equal footing with its largest rivals, all of whom had national coverage.

The next question was whether to acquire an existing finance house with branches throughout the country, or to progressively open up new branches of its own. ASB saw the latter as the better option. This decision was repeatedly endorsed as each new branch turned in results well beyond expectations.

Even though greater competition had pushed the banking industry to improve its performance for its own customers, ASB found that people in many areas still seemed be waiting for something more. In several areas new business enquiries were received well before the new branches were even up and running.

The first step to national coverage was made in 1991 with the opening of Hamilton branch. The success of this move was repeated throughout the following year with new branches opening in Wellington, Christchurch, Dunedin, Tauranga, Napier, Hastings and Palmerston North. In 1994 ASB began operating on a truly national basis when it amalgamated with its wholly owned subsidiary, Westland Bank. The enlarged ASB now had 127 branches spread throughout New Zealand.

At the same time as the Bank was expanding its geographical coverage it was also building up a creditable record in business and rural banking. While concentrating mainly on small to medium sized businesses the Bank also began to win the custom of well recognised national organisations. "Gateway", offering business banking customers 24-hour, 7-day access to their accounts and a range of services via their own personal computer, was well received.

Corporate Banking was also playing its part in expanding ASB's relationship with the business community. In conjunction with Electronic Banking, the division secured major new accounts in the health, power and telecommunications industries through applying innovative technological solutions to the large scale transaction processing needs of customers, rather than adopting a traditional credit based approach. Throughout the nineties the face of banking continued to change. New and refurbished branches began to move away from traditional layouts. Instead of the usual offices and one large teller counter, a much more open and welcoming layout of interview areas and smaller multi-use "islands" was introduced. Changes in the way New Zealanders handle their money (particularly the advent of electronic banking) meant that large strongrooms to hold substantial amounts of cash were no longer required.

Most branches when being refurbished, had ASB FastCash lobbies installed to allow customers "round the clock" access to their accounts, by using their debit cards through ATMs (Automatic Teller Machines). ATMs were also installed at remote sites such as shopping malls and service stations.

ASB established a Customer Service Centre to take over much of the routine clerical tasks leaving the branch staff free to devote more time to deal directly with customers. All this meant a bigger proportion of each branch's floor space being dedicated to customer service activities and much less to backroom work.

With the opening of a remodelled branch at Henderson in 1995, several new concepts were trialled. One was a team of Personal Bankers stationed at a welcoming information counter at the front of the branch rather than in their own offices. Once the customer's needs were ascertained then more private interview offices could be used. In this way the staff were required to approach and welcome customers rather than customers having to negotiate the traditional barriers to get individual service.

At this time when banking was becoming increasingly electronic, ASB was again at the forefront when it introduced "FastPhone". This exceeded all other versions of phone banking available at that time by offering a geniune bill payments facility.

Other innovations centred on stricter security requirements, regrettably made necessary by the social climate of the 1990s. One was a security screen installed on the banking counter. When activated in an emergency, one half of the screen shot up from the counter to meet the other half as it slammed down from the ceiling, the whole operation being completed in a split second. There were also special machines from which tellers obtained cash for customer withdrawals. The information from the account transactions activated the machines to dispense the relevant amount of cash, no need for the tellers to even count it.

National expansion continued throughout 1995 and 1996 with the opening of branches in Wanganui, Gisborne and Timaru.

At the same time as ASB was steadily raising its profile as a full service bank, care was also being taken to ensure that its customers, and the general public, were kept aware of the Bank's commitment to the community. While the Bank's part owner, ASB Trusts, continued to take care of pure donations, ASB maintained its links with the community through a comprehensive range of sponsorships.

The major sponsorships included Netball, Cricket, Rugby, Ethnic Cultural Festival and the Ellerslie Flower Show, heading a broad range of sponsorship arrangements with cultural, sporting and arts organisations throughout the country.

In 1995 and 1996 the Bank also linked some of its term investment promotions with the Starship Children's Hospital. The Bank undertook to make a donation to the hospital based on a percentage of the funds invested. In each case the target was reached well ahead of schedule.

At this time the home lending market was becoming more and more competitive. Banks were trying to outdo one another with rates, fees and service. Most banks were now offering variable rates, fixed rates and capped rates. Special offers involving nil processing fees were becoming a regular feature of home loan promotions. The biggest change however was made in the way that banks made their home loan services available to their customers. ASB maintained its position at the head of the market with its Home Loan Line and then lost no time in introducing Mobile Lending Managers as soon as this service appeared on the New Zealand banking scene. Right from day one ASB's Mobile Lending Managers proved an enormous success. While long and unsociable hours seemed to be a prerequisite, many of the managers achieved some remarkable results. The most successful, reaching sales figures in excess of $100 million within 12 months. Within a very short time Mobile Lending Managers were accounting for more than 25% of the Bank's lending figures.

In 1981, when it had still been part of the Trusteebank organisation, ASB had introduced its own Visa card. This was later augmented by a Visa Gold Card, and then when Business Banking became a part of the Bank's range of services, an ASB Visa Business card was introduced.

Then in 1996 the Bank added MasterCard to its range of credit products, offering standard business and gold cards. Not only did this provide extra choices for customers (especially useful for those travelling overseas) but ASB also offered a special low interest plan option on MasterCard.

By 1996, it had been almost twenty years since the Bank had last used an icon or personality to front its advertising. Back then it had been Kashin the elephant, with the knot in its trunk to remind itself about school banking day. But the late nineties called for something a great deal more sophisticated than that. While the Bank wanted to emphasize its technological progressiveness, it also wanted to reassure the market that this did not mean a diminution of friendly service. Rather, it facilitated an even better delivery of such service.

An amiable, slightly droll robot proved the ideal means of conveying this message across a wide range of product and service advertising. The vast majority of customers enjoyed Robert, and even those who didn't, had to concede that he achieved wonderful results when it came to public awareness.

In 1997 ASB celebrated its sesquicentennary. Its 150th year was one of its best ever. It doubled its national main bank market share to 15%, achieved the highest customer retention rate in the industry and gained substantial penetration into the Business and Rural markets.

A special logo was created with which to brand the Bank's merchandising, stationery and signage, throughout this milestone year. Several functions were held during June, some for community and business leaders, some more specifically for staff.

As the year drew to a close, even more accolades were bestowed on the Bank. It won the coveted Arthur Andersen Service Excellence Award, an award recognised internationally as a benchmark of best practice. Independent research rated the Bank at No.1 for "customer satisfaction and performance". To cap these achievements, Managing Director Ralph Norris was named New Zealand Business Executive of the Year.

The late 1990s saw the arrival of the Internet, a worldwide computer web. PC users, by accessing various sites were able to tap into a vast array of data including written material, graphics and even sound.

In 1997, continuing its tradition of innovativeness, ASB set up a web site and then began trialling a banking transaction service via the Internet. Until that time the main obstacle had been an inability to provide a high enough level of security for customer information.

ASB, by generating new programmes and software, were the first bank in Australasia to offer transactional banking via the Internet in a secure environment. This new product FastNet, was to prove highly successful for the Bank.

In October 1997, ASB launched its subsidiary, BankDirect. Customer interaction with BankDirect was undertaken through the Internet, ATMs or the telephone, and at that time it was the most advanced concept in personal banking operating in New Zealand. Interest rates charged and paid and the fees levied for services, reflected the cost effectiveness of an operation without the bricks and mortar and staffing requirements of a branch network. BankDirect was an instant success, and set the pace for the next generation of retail banks.

There had been a steady trend towards fixed rate home loans, so that by 1997 it was estimated that more than half of all New Zealanders with home loans were on fixed rates. To counter the loss of flexibility that fixed rate loans brought to the market, ASB introduced Orbit. Customers choosing to split their borrowings between fixed rate and an Orbit account could have the best of both the floating and fixed rate worlds. Orbit offered them the ability to package all their banking requirements within one account, thereby benefiting from the routine ebb and flow of funds from debit and credit, while being able to access and reduce their line of credit at will.

Another trend at that time had been towards self-reliance with planning and saving for retirement. With the aging of New Zealand's "baby boomers" predictions indicated that within the next decade of two there would be insufficient working tax payers to support National Superannuation at anywhere near the current level, if at all.

To meet the needs of this rapidly growing number of customers requiring savings and investment advice, ASB set up a team Investment Advisers. These were investment-accredited Personal Bankers specially trained to develop personalised investment plans. The adviser would meet with the customer at an ASB branch or if more convenient, at the customer's home or workplace.

During the 1990s in particular, New Zealand's banking scene had undergone radical change, with a number of mergers and takeovers. All players were looking to become increasingly cost effective in a now highly competitive industry. At the same time customers were moving to much greater use of electronic channels rather than physically visiting branches.

The cumulative effect of all this was to make a handful of the Bank's branches no longer economically viable and some difficult decisions had to be faced. A lot of very careful analysis and research was undertaken before any decisions were reached, but common sense and sound business practice inevitably led to the closure of a small number of the Bank's branches. In all cases, the Bank ensured that there were convenient alternatives readily available - either nearby branches or 24-hour ATM facilities, or a combination of the two. The situation also provided an opportunity for the Bank to encourage more customers into using electronic banking.

By now New Zealand had become one of the world's biggest users of EFTPOS. New Zealanders of all ages were also taking to the Internet in big numbers. To satisfy this demand, the Bank continued to develop and enhance its electronic banking services. Apart from drawing out cash, you could do virtually all your banking from home or work - over the phone using FastPhone, or via the Internet with FastNet. It was now quite common for a single cheque book to last for up to two years.

FastNet was then further refined into two distinct channels. FastNet Classic for personal banking and small businesses and FastNet Office for medium to large businesses.

In 1999 ASB significantly broadened its range of products and services by making two acquisitions. Firstly the Bank purchased the life insurance financial services company Sovereign Limited. The objective of this acquisition was to strengthen the Bank's position in the important areas of life assurance, disability assurance and insurance related savings and investment. The Bank was already involved in these areas but wished to increase its depth of experience and expertise.

The second acquisition was of the retail sharebroking and retail fixed interest operations of Warburg Dillon Read. Established in 1932, they were formerly known as Buttle Wilson. This acquisition matched a similar purchase of Commonwealth Securities by ASB's major shareholder Commonwealth Bank of Australia.

Thanks to the above acquisition, the Bank made a successful application to become a new Corporate Member of the New Zealand Stock Exchange.

The initial range of services offered by the new sharebroking division was the same as that offered under Warburg Dillon Read's ownership. Within a few months however ASB Securities, as this division was now called, launched two new services. Firstly there was the trans-tasman Discount Share Trading Service - a telephone-based service where brokers carried out the customer's trades at a reduced brokerage fee.

Secondly, following the establishment of ASB Securities' Internet Site, a new Online Share Trading Service was launched. This enabled clients to obtain live New Zealand and Australian share quotes, world indices, and company announcements and information. They were also able to set up and manage their own online portfolio and share watchlist, as well as trade over the Internet.

In 2000, Commonwealth Bank of Australia bought ASB Community Trust's 25% shareholding in ASB and so became the sole shareholder. Interesting to note that in 1989 it cost CBA $252million to buy 75% of the Bank, whereas the above 25% cost in excess of $600million.

In January 2000, ASB in a bold new approach to its advertising, introduced an amiable character named Ira Goldstein, on a mission from New York. Ira worked for a large American bank whose boss wanted to know why this particular bank down in New Zealand was so successful - what made it different from all the others?

The television commercials and merchandising material which evolved from this scenario, depicted Ira checking out all the various facets of ASB - Home Loans, Investment Advisers, Business Bankers, Rural Bankers and so on. While carrying out his investigative work Ira was required to constantly report to his boss with feedback on ASB.

Ira was an immediate success, meeting with unprecedented popularity among customers, staff and the public in general. A couple of young ladies in Invercargill even wrote to the Managing Director asking if they could establish an Ira Goldstein fan club! More importantly though, research showed that the 'Ira Campaign' helped to lift awareness of both the Bank and its products and services.

The key to the success of the campaign was having Ira acting as a neutral third party, commenting about the Bank, not a potentially biased spokesperson from inside.

In August 2000, ASB introduced a home loan campaign with a difference. Up until then all banks had been making similar offers based on reductions in fees and/or interest, or some sort of prize draw. The Bank decided it was time to change the focus and emphasize one of its key points of difference - fast and efficient service. The theme of the 2000 spring campaign was 'Take Our 60 Minute Challenge'. For this promotion, the Bank undertook to have each participating customer's home loan application approved within one hour - provided all the necessary information and documentation had been supplied. If this wasn't achieved the customer was given a Mitre 10 voucher to the value of $100.

The results exceeded expectations. Very few vouchers were issued and the Bank increased its home loan book at a very lean and uncertain time in the real estate market.

This uncertainty had a number of underlying causes which all seem to come to a head as the year 2000 drew to a close. A number of changes to laws governing industrial relations and employment contracts were introduced, fuel prices reached all time highs and the New Zealand dollar reached all time lows.

ASB however continued to steam ahead, adding new services, streamlining existing ones and growing its market share against the trends of its competitors.

Throughout 2001, the Bank confirmed its position as leader in a number of areas, from customer satisfaction to electronic banking. For the third year in a row, ASB was rated No 1 among New Zealand's major banks in Auckland University's independent study of customer satisfaction.

ASB Investments operation reached the billion dollar mark with funds under management and became a 'top ten' funds manager.

In registering 100,000 customers onto FastNet Internet banking, and with Internet transactions passing the one million a month mark, ASB had the highest proportion of customers operating online.

The Bank's Call Centre achieved a coveted "Best in Class" award from international company TARP, the first 100 person call centre in New Zealand to earn this award.

ASB's award winning "One Step Ahead" campaign featuring Ira Goldstein was judged winner in the Asian Banking Awards Marketing, PR and Brand Management category.

The Bank also had its best year ever with a 22% increase in profit to a record after tax profit of $183.4 million and 16.5% increase in total assets to $20.1 billion.

In September 2001, the tragic events in USA, and the aftermath in Afghanistan, saw the banking industry treading very cautiously while the markets tried to settle and avoid over-reacting into a recession. As the year ended, the business world looked to brace itself for a potentially rough ride in the year or two ahead.

The bank has had a series of successful commercials with the Ira Goldstein character. Goldstein explains FastCheque to his boss in 2006 Ira Goldstein is a fictional character, played by Stephen Mellor[1], who appears in television commercials for New Zealand bank, ASB Bank. ...

External links

Category: Banks of New Zealand ANZ Banking Group New Zealand is one of the largest banks in New Zealand. ... The Bank of New Zealand (BNZ) is one of New Zealands largest banks. ... HSBC Holdings plc (LSE: HSBA, SEHK: 005, NYSE: HBC, Euronext: HSBC, BSX: 1077223879) is one of the largest banking groups in the world, ranked the fifth-largest company and third-largest banking company in the world in Forbes Global 2000. ... Kiwibank Limited is a wholly-owned subsidiary of the state-owned enterprise New Zealand Post Limited. ... The National Bank of New Zealand (NBNZ) is one of New Zealands largest banks. ... RaboPlus is the brand name for Rabobank, a New Zealand online bank. ... Superbank is a joint venture retail bank in New Zealand operated by St George Bank in association with the New Zeland grocery retailer Foodstuffs. ... The Taranaki Savings Bank, or as it is now known, TSB Bank, received its first deposit under the banner of New Plymouth Savings Bank on 28 September 1850 from Waitera te Karei. ... Westpac Banking Corporation ASX: WBC NZX: WBC, usually called Westpac, is the fourth largest bank in Australasia, after the National Australia Bank, Commonwealth Bank of Australia and ANZ and one of the largest banks in the South Pacific. ...

External links GA_googleFillSlot("encyclopedia_square");

External links