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ANZ announced on Friday it will suspend providing new secured asset finance loans for retail customers in Australia, while it reviews the business.
The move was prompted by increased technology costs that the major bank needed to “effectively compete” in the secured consumer asset finance market, according to ANZ managing director retail distribution Catriona Noble.
The suspension includes new loans for motor vehicles, boats and caravans for retail customers.
“Our secured consumer asset finance product represents less than one per cent of revenue within our broader Australian business, so we need to assess if it is better for our customers, shareholders and employees if we focus our investment on areas of our business that are core to what we do,” said Noble in a statement.
The bank will continue to service existing current consumer asset finance customers and will also provide customers with access to personal loans during the suspension. ANZ said its asset finance product for commercial customers is not impacted by this announcement.
"Providing asset finance solutions for commercial customers remains a core business for ANZ and we will also continue to service existing retail customers for the duration of their loans," Noble said.
The suspension begins on 30 April. ANZ expects to complete the review by 30 September.
