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Nick Reed,

Group Head of Risk & Finance

Infrastructure, Projects & Strategy,

ANZ

A global view of ourclients helps us findnew ways to addvalue, win business,and combat fraud.

Nick Reed, Group Head of Risk & FinanceInfrastructure, Projects & Strategy, ANZ

Business benefits:

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.

ANZDriving super-regionalbusiness growth

with new insight intocustomer relationships

Business challenge

Australia and New Zealand Banking Group(ANZ) saw an opportunity to elevate itsrelationships with clients and fuel growth bygaining a single view of its customers across allcountries and channels.

Transformation

A set of master data management solutions ishelping ANZ gain a holistic view of its clientsboth within markets and across regions enhancing customer service, streamliningoperations and facilitating compliance.

Revealsopportunities to optimizeoffers by analysing customer

relationships globally

Combatsfraud by streamlining KnowYour Customer processes

and simplifying reporting

Enhancescustomer service byaccelerating client

authorisation checks from

3 hours to 30 seconds

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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.

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 servicesuffers 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, super-

regional way, it cant offer the r ightproducts 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 super-regional strategy

To support its clients and respond to the

changing needs of international trade,

ANZ is becoming a super-regional bank.

This means establishing closer linksbetween its operations in Australia

and New Zealand and its international

businesses in the Asia Pacific region, the

Americas, and Europe.

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.

Finding the rightway forward

ANZ embarked on a journey to gain

greater control of its customer information

through master data management.

It began with a project to create a singlesystem 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.

Master data management and data

quality can seem like dry, technical

topics, but the benefits for the business

are tangible and important, says NickReed. 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.

We can talk to our clients in theirlanguage, understand their keyconcerns and needs, and findopportunities to provide a better

service.Nick Reed, Group Head of Risk & FinanceInfrastructure, Projects & Strategy, ANZ

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Taking the nextstep with a globalcustomer register

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 cha llenges.

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 keyinsight 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.

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 thecutting 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 knowyour customerprocesses

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.

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.

Gaining insight intospecific customerneeds

The bank is now working on extending

the register to include hierarchies of all the

client entities that it works with.

We often work with multiple subsidiaries

of a company in different countries a nd

regions, explains Nick Reed. With

hierarchies, we will be able to analyse the

business that we do with each company

on many dif ferent 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, understandtheir key concerns and needs, and find

opportunities to provide a better service.

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Please Recycle

Solution components

IBM InfoSphere Master DataManagement Standard Edition

Improving dataquality

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 andhighlighting 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.

Enhancingcustomer 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 cangrow 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.

Copyright IBM Corporation 2015, IBM Soft ware, Route 100, Somers, NY 10589. Produced in the United States of America. September 2015.

IBM, the IBM logo, ibm.com, and InfoSphere are trademarks of International Business Machines Corp., registered in manyjurisdictions worldwide. Other product and service names might be trademarks of IBMor other companies. A current list of IBM t rademarks is available on the Web at Copyright and trademark information at www.ibm.com/legal/copytrade.shtml.

This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. THE INFORMATION IN THISDOCUMENT IS PROVIDED AS IS WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT A NY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE ANDANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided. The client is responsible forensuring compliance with laws and regulations applicable to it. IBM does not provide legal advice or represent or warrant that its services or products will ensure that the client is in compliance with any law orregulation. Statements regarding IBMs future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.

About IBM AnalyticsIBM Analytics of fers one of the worlds deep-est and broadest analytics platform, domainand industry solutions that deliver new valueto businesses, governments and individuals.For more information about how IBM Analyticshelps to transform industries and professionswith data, visitibm.com/analytics.Follow uson Twitter at @IBMAnalytics, on our blog atibmbigdatahub.com and join the conversation#IBMAnalytics.

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