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Speaker 1: You're listening to A Shares these podcast.

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Speaker 2: And so let's kind of turn our minds to open

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Speaker 2: banking and neo banking. We've seen success in the UK

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Speaker 2: and Australia where customers are able to be too more

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Speaker 2: easily switch banks or be offered more competitive services and

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Speaker 2: products from third party financial companies. But how has A

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Speaker 2: and Z approached adopting open banking and tech in Australia

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Speaker 2: and will we be taking the same approach here in

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Speaker 2: New Zealand.

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Speaker 1: So actually, the neo banking thing has largely been a

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Speaker 1: failure and I think we should just call it as

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Speaker 1: it is. I mean, most of the neo banks who

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Speaker 1: started here in Australia have subsequently closed or been a

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Speaker 1: quiet yeah. And the reason for that, and again on

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Speaker 1: being overly critical probably and overly a bit unfair, is

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Speaker 1: because they didn't there's nothing neo about what they're offering

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Speaker 1: was to a customer, there was nothing new. They still

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Speaker 1: took deposits and made light and you know large Okay,

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Speaker 1: the act was a bit sexier, and you know there

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Speaker 1: were some nice features around it, but the fundamental proposition

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Speaker 1: was the same.

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Speaker 3: Right.

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Speaker 1: In fact, you could argue it was worse because they

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Speaker 1: didn't have the breadth of service as a big bank had,

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Speaker 1: and really importantly, they didn't have the stability that a

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Speaker 1: big bank hats. Yeah in terms of the credit quality

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Speaker 1: and the diversification benefits that we had. So I and

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Speaker 1: that doesn't mean we should ignore technology. But where the

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Speaker 1: really profound change hasn't been neo banking per se, has

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Speaker 1: been real innovation, which is truly new proposition. So whether

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Speaker 1: it's a revolute or wise or the way that or

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Speaker 1: bone now po later on those sorts of things, so

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Speaker 1: different ways of engaging with your financials, right, those are

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Speaker 1: really where the innovation has come. Now. The challenges on

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Speaker 1: a big bank is how do you engineer yourself to

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Speaker 1: have the best of both big, stable, diverse and innovative,

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Speaker 1: fast clever propositions. Well that's our strategy. That's why with

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Speaker 1: launched d A m Z plus our new retail platform, which

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Speaker 1: is we've got roundups too. But we're the only major

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Speaker 1: bank who can do it because we've built ourselves in

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Speaker 1: a modern, contemporary stack. Now, everybody criticized us for doing

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Speaker 1: it because a cost a gazillion dollars, cost a lot

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Speaker 1: of money to do, but once you get there, what

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Speaker 1: we're seeing today's the advantage. We're only two years in market.

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Speaker 1: The cost to service a customer on Plus is thirty

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Speaker 1: five percent lower than it is in our traditional bank now.

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Speaker 1: A year ago it was twenty percent lower. So it's

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Speaker 1: getting the gaps widening. So that's our future. I think

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Speaker 1: the future is all about how do we embrace new technology,

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Speaker 1: So we use open banking and Plus. Using open banking,

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Speaker 1: you can go in and you can import your balances

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Speaker 1: and transactions to view them from one hundred and ten

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Speaker 1: other banks in Australia, any of them, and see it

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Speaker 1: all and see your consolidated financials. That's really really cool.

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Speaker 1: Now we're the only major bank that does that as well,

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Speaker 1: because we've invested in the technology stack that allows it.

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Speaker 2: I read someth with it. About seven percent of the

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Speaker 2: A and Z code written last year was generated by AI.

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Speaker 2: I think it's hub copilot. Can you tell us a

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Speaker 2: bit about how you envision AI technology changed it the

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Speaker 2: operational nature of A and Z and also the banking

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Speaker 2: industry as a whole.

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Speaker 1: I spent a bit of time up in California recently,

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Speaker 1: and the future is as generative AI and I know

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Speaker 1: probably people are sick of hearing about it, and there's

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Speaker 1: no doubt there's an element of overhype. That's true in

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Speaker 1: any new technology. But I've seen that future, and the

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Speaker 1: future is going to come in two ways. All of

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Speaker 1: the banks, we'll all everybody will start using these co

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Speaker 1: pilots that are embedded in every single tech tool we have,

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Speaker 1: Microsoft Outlook, it will be in Salesforce, it will be

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Speaker 1: into every tech tool we have your phone, and they'll

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Speaker 1: be great, and they'll make us all more efficient, just

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Speaker 1: like email made us all more efficient. But the benefits

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Speaker 1: of that won't differentiate you. They'll all get competed away

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Speaker 1: for the benefit of customers, but you still have to

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Speaker 1: do it great. The real opportunity is how do you

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Speaker 1: then take those AI tools and intelligent automation that comes

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Speaker 1: with it advanced analytics and embed those in propositions. Yeah,

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Speaker 1: so imagine if on your an SID plus you had

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Speaker 1: a virtual personal banker who you can ask questions of.

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Speaker 1: Am I going to be able to for to go

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Speaker 1: on holiday this year? Tell me where my money went

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Speaker 1: last month? Talk to me about am I saving enough

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Speaker 1: to form my retirement? All the banks will do the

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Speaker 1: productivity stuff, contact centers, all that some who have the

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Speaker 1: right tech platforms, we're able to build better propositions and

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Speaker 1: that's obviously where we aspire to be. In Australia and

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Speaker 1: in New Zealand.

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Speaker 3: Investing involves the risk you might lose the money you

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Speaker 3: start with. We recommend talking to a licensed financial advisor.

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Speaker 3: We also recommend reading product disclosure documents before deciding to invest.

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Speaker 2: Italian summer, buying a house, new granny flat. Whatever your aspirations,

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Speaker 2: we can help you get there, not just with investing,

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Speaker 2: but now with a high interest flexible savings account and

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Speaker 2: a key we save a scheme too, SHARE's ease for

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Speaker 2: the money you've got big plans for