Kiwibank Creating a sustainable growth business

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Kiwibank Creating a sustainable growth business
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A bit of history!

• Formation of a project team (within New Zealand
  Post) in June 2000 - creation of a business case
  to support a New Zealand owned bank
• New Zealand Post Board confirmed project in
  February 2001
• Full registration as a bank granted by Reserve
  Bank in February 2002
• 310 branch fitout in March 2002 June 2002
• Credit cards launched in April 2003
• November 2004 Business Banking commenced
• 300 ATMs rollout during 2005
• Launch of full international product alliance
  with Citibank
• Purchase 51 New Zealand Home Loans in July 2006
• Launch of full mobile banking in October 2006

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A snapshot of Kiwibank today

• Customers 550,000
• Lending 4.5bn
• Average mortgage 163,000
• Deposits 4.4bn
• Profit 25m

• Market Share (MFI) 5
• Outlets over 300
• Business Banking Centres 18
• ATMs 300
• Staff about 700

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A middle market bank

• Wide product suite Personal and Business
• Transactional banking
• Term and call deposits
• Mortgage lending products
• Business lending
• Credit cards
• Payments
• Insurance life and general
• Personal and vehicle lending
• Internet banking
• Mobile phone banking
• International Products
• Prezzy Cards

• Strategic drivers
• Competitive pricing - value
• Convenience
• Innovation
• Customer service

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Sustainable growth The problem

• Very few recent success stories of creating
  middle-size growth corporates that remain Kiwi

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Sustainability Startup Lessons

• Early stage back people, not process
• Use consultants sparingly
• Strategic risk taking in the areas that matter
• Align risks with startup suppliers
• Manage stakeholder and Governance expectations
  explicitly
• Challenger culture is more important than startup
  culture
• Make transition from small business to big
  business operating model early

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Sustainability Growth Lessons Constant change

• Risk management have a black hat
• Diversify growth engines to reduce risk
• Look for real strategic partnerships
• Periodic reinvention (strategy change)
• Invest in HR and employment brand
• Hire 30 somethings
• Some people dont grow change them
• Manage PR closely success is a great brand
• Lead culture always confidence, pride and
  humility
• Clarity of purpose

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Vision, Mission, Values and Customer Promise

• Vision
• Straight forward banking for New Zealanders
• Mission
• To earn the respect of New Zealanders by
  providing a real banking alternative, delivered
  with Kiwi spirit
• Values
• Respect acknowledging whats important
• Integrity straight up, doing it right
• Uncomplicated approachable, responsive,
  transparent
• Kiwi value challenge convention, think
  creatively, deliver quality
• One team were in this together, strength in
  numbers
• Real original, authentic
• Customer Promise
• We will
• Respect you and value who you are
• Listen to understand
• Deliver the best value