Better, stronger, faster support for SMEs
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ANZ is upping its game and winning fans in its mission to help SMEs successfully navigate a changing economy, with more support for brokers and faster decision-making
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ANZ WANTS small to medium-sized businesses and their brokers to make the most of recent changes to its lending processes.
“One of the most important ways we can support [SMEs] to be financially ready is through fast credit decisions and getting funds into accounts quickly,” says Paul Presland, ANZ general manager of small business.
ANZ is busy improving systems to allow funds to get to where they are needed quickly. It has already implemented schemes such as its rapid refinance process, which reduces application paperwork, including for dual applications.
“We’ve been working on simplifying the lending value chain and have seen improvements in performance, accountability and time to money,” says Presland. Early results are impressive.
Founded in 1835 and headquartered in Australia, ANZ is one of the four largest Australian banks, ranked in the top 25 banks globally by market capitalisation. It employs approximately 45,000 staff and operates in 34 markets globally. ANZ serves over 10 million retail, commercial and institutional customers, with consumer and corporate offerings in its core markets and supporting regional trade and investment flows across the region. Its purpose is to shape a world in which people and communities thrive. That is why ANZ strives to create a balanced, sustainable society in which everyone can take part and build a better life.
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Credit enquiries from businesses in November
87%
“We’ve been working on simplifying the lending value chain and have seen improvements in performance, accountability and time to money”
Paul Presland,
ANZ
“This emphasis on improving quality and efficiency across the end-to-end process for small business lending has resulted in reducing the average time it takes to get a final credit decision by more than 60%.”
That is a significant difference when it comes to most of the issues that SMEs face when tackling cash flow, getting access to capital, and staying on top of the myriad of moving financial parts involved in keeping an enterprise running. SMEs account for 99% of businesses in Australia, and enabling funds to be tapped that much faster has won ANZ praise.
“Results so far have been overwhelmingly positive – in some cases we’ve seen application approvals in under three days,” says Presland.
Building in resilience
Other changes include extending the maximum loan term on an ANZ business loan of less than $3m from 15 years to up to 30 years when secured by suitable commercial property, or introducing assessments for home loan and business loan applications via a single decision point.
While the last few years saw a range of unexpected challenges, one positive about the current environment is that many risks are already on the radar for SMEs – from supply chain problems to inflation to staff shortages – and a large number have prepared accordingly.
“Our customer data indicate most SMEs have repayment buffers, and small businesses have robust operating cash flows, which should help manage any future economic shocks,” says Jenefer Stewart, ANZ general manager of business banking.
“Obviously this is not across the board, but the overall picture is promising.”
In a way, SMEs today are more resilient than they might have been had they not been through the trials of the last few years.
“The enthusiasm, confidence and continued investment we’re seeing across the majority of our SMEs suggest the outlook may be rosier than one might expect,” says Stewart.
A crucial role
Brokers play an important part in keeping the funding flowing through the system, and a solid understanding of changing SME customer needs is crucial.
“Brokers who work to further understand customers, understand the problems they are trying to solve, and ultimately drive better customer outcomes will often see a faster time to decision,” says Ivan Mioc, ANZ general manager commercial broker.
This is an important point not only for new brokers learning the trade but also for experienced brokers as they grapple with changing products, new technology and ever-evolving economic conditions.
“Ultimately, the more knowledge brokers have regarding ANZ’s processes and policies, the more likely they are to have a one-touch approval,” says Mioc.
ANZ wants to make sure brokers have an accurate map to navigate the lending landscape, and so provides information and opportunities to help them stay up to date.
“Our webinar series and continued education program will provide brokers with a solid knowledge base to expand their experience into the commercial space.”
“The more knowledge brokers have regarding ANZ’s processes and policies, the more likely they are to have a one-touch approval”
Ivan Mioc,
ANZ
Mutually beneficial
Mioc emphasises the dynamic nature of the relationship. Brokers operate at the coalface of the economy and are close to SME client businesses. They’re in a good position to identify emerging trends and opportunities.
“Understanding your clients and their needs is key to being able to provide the best service and helping them find the right solution for their finance needs,” says Mioc.
ANZ is always happy to advise, whether clients have particular
lending needs or the broker wants a sounding board to discuss how ANZ can assist different clients.
“Talk with – and work with – your banker on deal submissions, and seek help if you need it,” says Mioc.
“Talking with your banker about complex scenarios before submitting deals may help get a faster time to decision.”
Likewise, keeping a close eye on potential problem spots will allow a broker to explore a broad range of constructive solutions that may be better for the business in the long term.
“Having these conversations early will enable the broker and banker to present more assistance options,” says Mioc.
ANZ is confident that it has the right formula to allow the natural business drive of SME customers to shine through.
“These enhancements are about creating consistency and ensuring the right steps in an application are completed at the right time, ensuring a great lending experience and faster time to decision so small business owners can get on with running or growing their businesses,” says Presland.
It’s a mindset that constantly inspires ANZ to provide better service as SMEs continue to adapt to evolving economic cycles.
“There is always more work to be done, and we are always listening to broker feedback and looking at ways we can improve,” says Mioc.
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Source: CreditorWatch Business Risk Index
versus Nov 2021
versus Oct 2022
61%
PERCENTAGE OF SMEs EXPECTING TO NEED ADDITIONAL FINANCE OVER FOLLOWING THREE MONTHS
Source: SME Sentiment Tracker by ACA Research
15%
10%
5%
0%
11%
12%
15%
Sept 22
Oct 22
Nov 22
This often involves painting a detailed picture for the lender, backed up by solid information that shows the broker understands the business.
“A good application tells the whole story, including the risks and how those risks can be mitigated. It also uses the customer’s financial data to back up the story, which shows the application assessor that the broker has taken time to get to know the customer and the transaction,” says Mioc.
ANZ acknowledges that providing good information is a two-way street, and successful broker–lender relationships are built on clear communication.
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Copyright © 1996-2023 KM Business Information Australia Pty Ltd.
Companies
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Copyright © 1996-2023 KM Business Information Australia Pty Ltd.
Companies
People
Newsletter
About us
Authors
Privacy Policy
Conditions of Use
Contact Us
RSS
News
MORTGAGE INDUSTRY
BEST IN MORTGAGE
SPECIALTY
TV
Resources
US
CA
AU
NZ
UK