ANZ Banking Group’s claimed digital and innovation benefits from a planned $4.9 billion buyout of Suncorp Bank are set to be tested further as the ACCC continues to examine the deal.
The group’s rationale for snapping up Suncorp Bank is partially to achieve scale it sees as necessary “to enable continual and more efficient investment in digital transformation and innovation.”
“ANZ submits that this will help it to build a superior bank for customers and to better compete in the digital age,” the ACCC said in preliminary views [pdf] published Tuesday.
However, the ACCC said that doubts had been raised, primarily by the Comsumers’ Federation of Australia (CFA), over the extent to which the digital and innovation benefits would accrue.
The ACCC said there would be some cost efficiencies and “synergies” from a merger, but said ANZ had provided no support material for its assertions.
“It is therefore difficult for the ACCC to assess the likelihood and extent to which such synergies may arise,” the commission said.
The ACCC said it also wants more information about how a merged entity would make financial products like savings accounts available, particularly through physical or digital channels.
“Despite customers’ uptake of online banking, the ACCC understands that physical distribution networks continue to be important for transaction accounts and cashhandling purposes, elderly customers, customers without access to technology, and brand recognition and perceptions about customer service,” it stated.
The ACCC has to make a final call on the proposal by June 12.
