Deposits lift on Apple Pay, says ANZ Bank

Almost two months after it signed a deal to provide Apple Pay, ANZ Bank says teaming up with the technology giant is prompting more customers to open accounts, or start using credit cards that had been lying dormant.

ANZ became the first major bank to offer Apple Pay in late April, breaking ranks with rivals, which are negotiating over how millions of dollars in fee revenue would be shared if they were to also provide the service.

While Australian consumers have generally been reluctant to use “digital wallets” ANZ says the move is having a real impact on its sales of transaction accounts, especially digital sales.

Matt Boss, managing director of products and marketing, said it experienced annual growth of more than 60 per cent in digital sales of transaction accounts during May.

While some of that growth had been occurring before the deal with Apple, Mr Boss said the bank believed Apple Pay was playing a “huge part” in the growth in its retail deposit book.

“In May they’re up just under 20 per cent year over year, and through the digital channel they’re up over 60 per cent,” Mr Boss said.

Chief Shayne Elliott, who started in February, has vowed to put a greater focus on technology, and is also targeting growth in the retail banking market, while putting less emphasis on Asia. Mr Boss said ANZ expected to lift its customer numbers by 200,000 this year.

“We’re seeing people that haven’t been active with us load up their card to Apple Pay, and start becoming active customers again,” he said.

While some banks are reluctant to give Apple a slice of their fee income from cards, ANZ views Apple Pay as a way of bulking up its customers, and being more “engaged” in consumers’ financial lives.

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Source: Deposits lift on Apple Pay, says ANZ Bank – Sydney Morning Herald