The commencement of the inquiry, less than two years into Elliott's tenure as CEO, presented a deeply confronting period for all stakeholders involved. The exhaustive examination of the industry’s conduct illuminated areas where ANZ fell short of community expectations.
“However, the Royal Commission forced us, in excruciating detail, to examine where our conduct fell short of community expectations and ultimately helped drive the leadership, system, cultural and people changes to create an ANZ worthy of the community’s trust and respect,” he said.
The ANZ leader reflected on key insights gleaned from this period of introspection:
Simplification: ANZ embarked on a journey to streamline its operations, divesting from 32 businesses to refocus on core banking services. This strategy aimed to prioritise excellence in fewer areas, offering employees a clear sense of direction.
“For ANZ that means a focus on three core customer segments: housing, business, and facilitating the movement of capital and goods around the region,” Elliott said.
Customer fairness: The revelations from the Royal Commission underscored the importance of ANZ’s social license and prompted a reevaluation of its approach to customer fairness. Initiatives such as the introduction of a customer fairness advisor in December 2016 underscore ANZ’s commitment to consistently deliver fair and responsible banking to its retail and small business customers.
“While a key part of this role is to think about the way we operate, who we bank, how we behave and the services we provide, our people are also considering this every day,” Elliott said.
Remuneration: ANZ recognised the misalignment between its remuneration model and stakeholder expectations, leading to reforms aimed at incentivising behaviours that support the bank’s culture, values, and desired outcomes. Emphasis shifted towards team and organisational performance over individual achievements.
Culture and purpose: Elliott highlighted the importance of fostering a culture where doing the right thing is paramount. ANZ’s purpose, to shape a world where people and communities thrive, guides decision-making processes, ensuring alignment with ethical standards and customer-centric practices, he said.
“There is no doubt in my mind the Royal Commission was a good thing and has contributed to ANZ being a much better organisation today than it was five years ago,” Elliot said. “It had a significant influence on the way we use purpose to guide our decisions, the way we think about customers and the way we think about ethics and conduct.
“Great organisations are always learning, and it's incumbent upon all of us never to forget the lessons of the Royal Commission as we go about our jobs every day.”
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