MGMT11109 - Auswide Bank's Development in Regional Australia

This essay provides an overview of Auswide Bank, an Australian bank with roots in Bundaberg, Queensland, and its evolution from a building society to a publicly listed bank. It identifies challenges faced by the bank in regional Australia, including economic rationalism, declining market credibility, globalization, urban drift, and policy environment changes. The essay also examines current developments in the banking industry, such as changing demographics, technology, and customer behavior, and their impact on Auswide Bank. Furthermore, it discusses the bank's strategies for restructuring products, marketing, and sales channels, implementing technology upgrades, and fulfilling its social responsibilities through community support. The essay concludes by emphasizing Auswide Bank's commitment to improving performance and maximizing shareholder value through cost management and efficiency.

Introduction to
Business
Name of the Student:
Name of the University:
Author Note:

Auswide Bank has headquarter
in Bundberg Queensland
Auswide Bank represents
Australia’s 10th listed and
Queensland 3rd listed bank
trading on Australian Stock
Exchange (ASX)
Have a mission of demonstrating
the’ power of small’ by placing
the customers at the
forefront(auswidebank.com.au,
2018).
Introduction to Auswide Bank

Auswide Bank has its roots in
Bundaberg based Burnett
Permanent Building Society and
became operational in the year
August1966
The building society underwent
expansion at the national level
followed by a change in the name in
becoming Wide Bay Australia Ltd in
2003
In the year, April 1, 2015 Wide Bay
Australia came to be known as the
Auswide Bank Ltd with a listing on
the ASX.
History of Auswide Bank

Economic Rationalism, Declining
Market Credibility and Globalization :
The instant nature of the information and the
knowledge through the electronic means such as
the internet has led the alternation in the operation
of the financial and the economic sector like
banking and the manner in which discussions
about the diversity and the differences of cultures,
groups and ethnicity takes place (Claessens &
Van Horen, 2014).
Challenges in Regional Australia

Urban Drift and Metrocentrism: The kind of
geography and the imposed pattern of the social,
cultural and economic activity placed higher level of
dependence on the relationship between mutual
relationship that exists between the nature and the
society. The ‘thin market’ has led to the decline of
the government, health, education, training, the
commercial and the banking services. The rural
problems no longer remain restricted to the rural
areas as they make a shift in the urban cities, large
centres and suburbs(Corbett, 2016).
…Challenges Continued

Program/Policy Environment : The government
at every level need to provide a response to
innumerable set of electors as well as conditions. This
happens due to the electors expectations of quicker
response to the problems(Hodge, 2018). Therefore, this
has led to the creation of social trend in chopping and
changing policy environment in generating response
the changing circumstances. For instance, changes in
the conditions of the training and the learning
provisions for unemployed resulted in recipients being
denied access to the process of learning.
…Challenges Continued

Changing Demographics: The population is not
only becoming older but becoming increasingly diverse
richer, urbanized and increasingly interconnected across
the national boundaries (Philippon & Reshef, 2013).
Changing Technology: In recent times, information
technology has become more capable, modular and
open (Martins, Oliveira & Popovic, 2014).
Changing Behaviour of the Customer: In
recent times, the consumers are becoming more
educated, tolerant and confident and law abiding.
Besides, they are better informed and keen on doing
business online (Lovelock & Patterson, 2015).
Current Developments in the Banking Industry

Impact of Development on
Auswide Bank
Restructuring of bank’s product, marketing and the sales channels for
improving the customer experience.
Implementation and re-engineering of end to end process of
home loans
Automating the process and simplifying the products
Building the brand name of the bank through constant messaging and an
upgraded customer service
Continuous investment in skills, technology and training
Strengthening the bank through management of risk, capabilities, audit
process and capital strength.
Reduction of the Bank’s cost to income ratio
Reviewing the process that arises while running the business

Investment in Technology
Up gradation of Major Systems: This enabled
Auswide Bank in developing a consolidated and unified
platform for banking.
Automated Loan Origination System: This helped
in generating significant processing time thereby resulting in
cost efficiencies.
Up Gradation of Online Banking Capabilities:
This help in enhancing the overall experience of the
customers

Social Responsibility:
This refers to the idea that the business
must balance the activities of profit making
with the activities that benefits the society
(Cheng, Ioannou & Serafeim, 2014).
Social Responsibility of Auswide

Auswide Bank provides outstanding
service to the customers as means of
gaining competitive advantage
Customer Experience

1. Key Sponsor of the Queensland Young
Achievers Award:
2. Fundraising Activities
3. Aids in University Scholarships
4. Funds for Disaster Relief:
Support Towards Community

Conclusion
On a concluding note, it can be said that Austwide
Bank remains committed to the constant
improvement of its performance for the benefit of the
shareholders. To maximize the value of the
shareholders the bank follows an approach for driving
the cost management and the efficiency outcomes
across business.

auswidebank.com.au 2018. [online] Available at: http://www.auswidebank.com.au/about-us/our-company/ [Accessed 3 Oct.
2018].
auswidebank.com.au. (2018). Community Support Strategy. Retrieved from
http://www.auswidebank.com.au/uploads/pdfs/lib/auswide-bank-community-support-strategy.pdf
auswidebank.com.au. (2018). Retrieved from https://www.auswidebank.com.au/uploads/pdfs/news/18/auswide-bank-designs-
ground-breaking-
auswidebank.com.au. (2018). Retrieved from https://www.auswidebank.com.au/uploads/pdfs/news/17/auswide-banks-
investment-in-technology-delivers-new-internet-banking-mobile-app.pdf
auswidebankltd.com.au. (2018). Retrieved from http://www.auswidebankltd.com.au/about-us/our-history/
auswidebankltd.com.au. (2018). Retrieved from http://www.auswidebankltd.com.au/uploads/pdfs/lib/credit_rating_report.pdf
Cheng, B., Ioannou, I., & Serafeim, G. (2014). Corporate social responsibility and access to finance.
Strategic management
journal,
35(1), 1-23.
Claessens, S., & Van Horen, N. (2014). Foreign banks: Trends and impact.
Journal of Money, Credit and Banking,
46(s1), 295-
326.
Corbett, M. (2016). Rural futures: Development, aspirations, mobilities, place, and education.
Peabody Journal of
Education,
91(2), 270-282.
Hodge, G. (2018).
Privatization: An international review of performance. Routledge.
Lovelock, C., & Patterson, P. (2015).
Services marketing. Pearson Australia.
Martins, C., Oliveira, T., & Popovič, A. (2014). Understanding the Internet banking adoption: A unified theory of acceptance and
use of technology and perceived risk application.
International Journal of Information Management,
34(1), 1-13.
Philippon, T., & Reshef, A. (2013). An international look at the growth of modern finance.
Journal of Economic
Perspectives,
27(2), 73-96.
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