Auswide Bank: Australian Banking Sector Analysis and Impact

This report provides a comprehensive analysis of Auswide Bank, commencing with its historical roots in the Burnett Permanent Building Society and its evolution to its current status. The report highlights Auswide Bank's challenges, including increased regulatory scrutiny and the need for a more consumer-centric approach to overcome disruptions brought by digital technologies. It examines recent developments in the Australian banking industry, such as the rise of Fintech and evolving customer expectations. The report details the impact of these developments on Auswide Bank, emphasizing the need for technological adoption and product diversification. Furthermore, it explores Auswide Bank's social responsibility initiatives, including its commitment to ethical transactions, transparent disclosures, and customer-centric practices. The conclusion underscores the importance of effective strategies and social responsibility in ensuring Auswide Bank's future operations. The report includes references to relevant academic research supporting the analysis.

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Auswide Bank
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The profitability achievable for banks operational in Australia
depends on their productivity regardless of the challenges faced in
the course of their operations.
However, Auswide Bank’s efforts have led to its accumulation of
assets valued at more than $3 billion with an Australian Securities
exchange ranking.
The presentation endeavors to focus on the history and social
responsibility efforts of Auswide Bank and how it is impacted by
the challenges facing the Australian banking sector.
Introduction

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 The operations of the Burnett Permanent Building Society –
which is considered as the roots of Auswide Bank- commenced
in 1966.
The Wide Bay Capricorn Building Society came into existence in
1979 owing to the amalgamation of the Maryborough Permanent
Building Society to its counterpart Burnett Permanent.
Mackay Permanent Building Society Limited which was ASX-
listed formed a merger with Wide Bay Australia which later on
resulted in the Auswide Bank in 2015.
Auswide Bank History

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Currently, Auswide Bank is facing an increased scrunity
owing to extensive legal as well as regulatory oversight.
Moreover, the growth anticipated by the bank with respect to
its dividends is extensively subdued.
Hence, the challenge presented pertains to ensuring that the
approach relied on is more consumer centric to ensure that
disruptions portended by various digital technologies which
are disruptive are overcome.
Auswide Bank Challenges of having a head
office in regional Australia

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The developments in the Australian Banking scene relates to increased
reliance on Fintech to offer services that relate to lending, investing or
making some savings particularly where millennials are involved.
The industry is also facing some transition where future earnings are
bound to be regulated for concerns which might be evident among
respective communities to be regulated while ascertaining that the
institutions can attain sustainability financially.
The expectations of Australian clients in respect to the provisions availed
by Australian banks are under transformation as they anticipate products
which are not only innovative, but also with prices which are competitive.
Recent developments in the banking industry
in Australia

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The developments evident for the Australian Banking industry
pave the way for the requirement that Auswide Bank should make
efforts to adopt suitable financial technologies for its operations.
The limitations on the earnings achievable by Australian banks
necessitate that Auswide should develop a diverse portfolio of
products to cater for its clients and to ensure that the desired profits
are attainable.
Moreover, extensive investments are also anticipated from
Auswide Bank to ensure that clients are effectively protected.
The impact of the banking industry developments on
Auswide Bank

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 Auswide Bank acknowledges the challenges which are
often associated with sustainable development.
 The approach it uses is endeavored to ensure that the
desired societal transformations are achievable.
 The implication is that shareholder expectations can be
managed to ascertain that the company is able to achieve
its performance targets.
Social Responsibility at Auswide Bank

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 The bank is responsible for ascertaining that transactions
involving clients are guided by honesty in addition to
integrity.
 The disclosures provided to clients where product terms or
conditions are involved should be simplified for clients to
understand them.
 Procedures relating to complain resolution should
guarantee instant feedback to facilitate appropriate
actions.
The social responsibility of Auswide Bank to
its customers

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 The practices adopted to facilitate customer lending
should be responsible for clients to be able to meet their
financial obligations.
 The bank’s initiative involves the provision of facilities
which facilitate internet banking as a alternative method
appropriate for statement receipt to eliminate the necessity
to travel for transactions which are quite simple in nature.
 Through BPAY®, clients are allowed to make payments
offering the assistance required particularly by the elderly.
The social responsibility of Auswide Bank to
its customers (Cont…)

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 Auswide Bank faces many challenges in the environment
in which it operates.
 However, it can overcome the difficulties through the
implementation of strategies which are effective.
 The fulfilment of the enterprise’s social responsibilities is
among the factors bound to guarantee operations into the
future.
Conclusion

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 De Jong, P., Choo, W., & Loudon, G. (2016). An Early Warning Tool for
Measuring the Build-Up of Systemic Risks in Banks and Financial Systems.
 Guo, Y., & Cummings, J. (2017). Do the Basel III Capital Reforms Reduce
the Implicit Subsidy of Systemically Important Banks? Australian Evidence.
 Brueckner, M., Durey, A., Mayes, R., & Pforr, C. (2014). Resource Curse or
Cure?. Csr Sustainability Ethics & Governance.
 Georgiou, J. (2015). Exploring the benefits of attracting, recruiting and
retaining mature age employees up to and beyond the traditional age of
retirement: Perspectives from Western Australia.
 Nguyen, L., & Cummings, J. R. (2016). Impact of Higher Capital
Requirements on Bank Funding Costs: Australian Evidence.
 Guo, Y., & Cummings, J. (2017). Do the Basel III Capital Reforms Reduce
the Implicit Subsidy of Systemically Important Banks? Australian Evidence.
References