Job cuts feared if banks combine

ANZ and National Bank customers should be able to use the banks as one, says ANZ chief executive Mike Smith. Photo /Dean Purcell

A bank workers' union has warned that a rumoured merger of ANZ and National banks could lead to job losses.

The comments come in the wake of ANZ chief executive Mike Smith's statement that running two separate banks is inefficient for customers.

ANZ bought National from British bank Lloyds TSB in 2003 and became New Zealand's largest bank, with a 40 per cent market share. Since then the group has been trying to streamline services to ensure cost-saving measures and customer convenience.

Trade union Finsec said it was concerned a merger could mean job losses for back office services.

Finsec national campaigns director Tali Williams said she took comfort from ANZ New Zealand head David Hisco's affirmation there would not be a mass closure of National branches.

Ms Williams said if a merger happened there would have to be a strong consultation process put in place that included the union, its 1850 members, the banks' employees and customers and community stakeholders such as Greypower.

"We don't know exactly what will happen. But we want to be part of making the decision, and have an opportunity to ask the right questions. We have heard over and over again that no decision has been made."

ANZ New Zealand spokeswoman Gita Parsot said Mr Hisco had outlined that the bank had a programme in place to make its business more efficient.

Changes, such as the IT rollout, had been designed to maintain customer satisfaction and support New Zealand's economic growth.

National's horse, and green and white logo, belonged to Lloyds TSB - the bank's former owner - and ANZ paid Lloyds to use it.

That licence was renewed last year for another five years but Mr Hisco said it would not last forever. This had led ANZ to think about how its brands work together "and we'll take as much time as necessary to do that".