KEY POINTS:
Among the bosses of New Zealand's four major Australian-owned banks, ASB Bank managing director Hugh Burrett stands out for at least a couple of reasons.
For one thing, he's a New Zealander. On top of that, it's been six years since the genial 63-year-old Aucklander replaced Ralph Norris,
making him the longest-serving chief executive among the majors.
And unlike the new chief executives of Westpac and BNZ, he's a career banker who's been with ASB Bank and its predecessor, the Auckland Savings Bank, over his entire 40-year career.
"I'm one of those unique beasts who started as the mail boy and have worked up to the top job."
The reason he's stayed so long? "There were always challenges with the changes going on."
His early days with the bank included stints in various branches and its lending department, before he became involved in the bank's preparations for the switch to decimal currency in 1967.
"At that stage we actually set up a team of staff to computerise the bank and I was fortunate to be part of that."
Another member of that electronic data processing (EDP) team, as it was called back then, was future chief executive Norris.
"That was a great opportunity and it taught me a lot about computers, systems and process.
"We went online real time in 1969. We would have been the first bank in the Southern Hemisphere to do that. There weren't too many others in the world back then, and there are some that aren't even online real time today."
Burrett worked in ASB's EDP team for about seven years.
"We've always used technology as an enabler. In any business you can only cut out so many costs and then the way to do it is to change process. So our drive has all the time been on process improvement and to do that generally you need IT in the end, that's where our thrust has been."
Following his time with the bank's EDP section, Burrett had spells as a branch manager before going to head office where his roles included personnel manager, before he became involved in the bank's strategy setting in the early 1980s, as deregulation of the industry approached.
"In 1985 or 1986 when we went through deregulation I was fortunate to be given the opportunity to really change the front end of the bank and alter it from a savings and loan bank to a full service bank.
"We regionalised the branches and then we started to add all the different services like business banking, rural banking, corporate banking and so on.
"Through the 90s we expanded across New Zealand and added things like superannuation, insurance, managed funds sharebroking and so on until today when we are now a full financial services provider."
The speed and scale of the growth during that period was impressive.
"In 1984 we had $1 billion in assets, and in 1991 when I took over [as general manager of banking operations] we had $22 billion and today we have $50 billion."
The pace of growth is also reflected in the prices Commonwealth Bank of Australia (CBA) paid to acquire the bank. It paid $252 million for 75 per cent in 1988. Ten years later it paid more than twice that for the remaining 25 per cent.
While the bank is now a wholly owned subsidiary of CBA, the Auckland and Northland communities continue to benefit from the proceeds of the sale.
The ASB Community Trust, which was created following the sale to CBA, now holds more than $1 billion in assets, and gives away up to $70 million a year to community projects.
ASB continues to support the trust with management and administration services but doesn't have control over it.
"It's a separate entity but where we can we work with them when they're making donations."
Meanwhile, Burrett says the bank's journey isn't over yet. "I can still see many opportunities where we can take the business and how we can fine-tune and run it differently. It's still a pretty exciting time from my point of view."
The signs of those improvements may not to be immediately apparent to customers.
"The only improvements they'll see are in customer service in the broadest sense."
ASB has clearly been successful in that regard. It has consistently been the leader of the major bank pack in local retail customer satisfaction surveys and has been Britain's Banker magazine's best New Zealand bank for the past four years.
Some of the more overt signs of competition between the major banks have been less visible of late - for example, this year hasn't seen a repeat of the BNZ-led "mortgage war".
"While there mightn't be talk, competition is still pretty strong out there," Burrett says.
"You've got the majors, Kiwibank coming in and other smaller banks out there on the periphery.
"Every bank is striving pretty hard to keep growing their balance sheet and certainly hold market share, if not grow it."
That competition has put pressure on banks' margins, particularly on housing loans. In fact, some commentators have questioned whether the banks can sustain those margins. Burrett suggests they can.
"The margins are pretty slim, but people have got used to it and we're learning to operate within them and continue the battle."
The tussle for mortgage market share has generated the most headlines but Burrett says the industry is competitive across the range, including business and rural banking.
"We're still taking share in all areas so I'm pretty happy."
Looking ahead, Burrett says he'll continue in the top job at ASB "as long as the group wants me to be here".
He points out the bank has a couple of staff members who've just completed 50 years' service.
"When I finally hang my boots up here I'll probably carry out my own business."
Apart from his career with the bank, Burrett has owned and run a kiwifruit orchard in Karaka and a few small grazing properties. He's also developed a number of residential and industrial properties.
Those experiences have held him in good stead when dealing with customers.
"It taught me a lot of tolerance, that you can work with customers if you understand the issues."
When he does finally call it a day at the bank, he'll also likely have more time to indulge his passion for sailing.
A member of the New Zealand Yacht Squadron for 40 years, he has also been a keen windsurfer but currently favours Zephyr class one-man yachts.
"There's been a revival of the class and that's been good fun."
In fact, his passion for sailing led to the first "real long holiday" in his career, and saw him miss a board meeting for the first time in 20 years - five weeks in Valencia supporting Emirates Team New Zealand.
"It certainly was a rollercoaster ride, but very special. Probably a lifetime experience."
Position: ASB Bank managing director.
Age: 63.
Family: Married to Sue, three children.
Education: Epsom Normal Primary, St Kentigern College, AUT.
Career: ASB, property development, farming.
A member of: the Institute of Management, Financial Services Institute of Australasia (FINSIA), Auckland Rotary, Business RoundTable, Committee for Auckland, Royal New Zealand Yacht Squadron. Trustee of the Joyce Fisher Endowment Fund.
Interests: Sailing, windsurfing, rugby, skiiing.
