The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is back in focus as the big four bank prepares for its annual general meeting (AGM) tomorrow. And it might face some curly questions, too.
Shares in Australia's fourth-largest bank were trading 0.4% higher at $27.59 in late afternoon trading today.
What questions might ANZ face tomorrow?
While the ANZ share price has fared reasonably well over the past 12 months, there are a number of issues that shareholders want to be addressed at the AGM.
Firstly, it is believed the bank will need to field questions regarding ANZ's rate of change in digitising its retail banking segment.
To the disappointment of shareholders, the bank has adopted an approach that is not too dissimilar to the rollout of the NBN. Rather than implementing a completely new system, the bank is adding some new features on top of an old base.
In the words of ANZ CEO Shayne Elliott:
It's not a CBA 'rebuild the core'. But we are taking the bits that we know and love from our existing systems that work really well and building a bunch of new things to go with it in a new platform, which is called ANZx.
The lack of investment in technology that could deliver faster, cheaper, and more convenient experiences for customers might have something to do with the second issue shareholders are expected to raise tomorrow — an underperforming mortgage loan book.
During a booming time for new home loans, ANZ has struggled to grow its home loan division. Experts have suggested that delays in approval times at ANZ have been a contributing factor.
However, the bank has recently flagged the potential for home loan approvals in 10 minutes. Although this is not anticipated to be ready for use until the end of next year.
Unsurprisingly, shareholders want to know what the game plan is as ANZ embarks on its new tech voyage.
