Our island history

ANZ is approaching its 200^th anniversary. In 1828 our predecessor the Cornwall Bank was set up in the island state of Tasmania, Australia, then Van Diemen’s Land, when the people of the local community were tired of being ignored by the banks in Hobart.

“Through our network, we facilitate about 25 per cent of all payments into the Pacific, and around 15 per cent of all payments out of the region.”

Islands are a big part of our history. ANZ’s second market was the north island of New Zealand, eight weeks after the Treaty of Waitangi was signed. A “shack" was set up in Petone outside of Wellington and called the Union Bank, another of our predecessors.

Our third market in the network was the island country of Fiji. In 1880 the Union Bank established a branch in Levuka, Fiji. Three years later the bank opened a branch in Suva which marked the beginning of a long and proud history in the Pacific.

From those early days, we've financed commerce and trade to help unlock opportunities in the region for individuals, families, businesses and communities. This aligns with a key part of ANZ’s strategy – to help customers move good and capital around the region.  

Over the years, we have adapted our business to focus on the areas where we can add the most value. Today, we operate in eight markets across the Pacific: Fiji, Samoa, Tonga, Vanuatu, the Solomon Islands, Kiribati, the Cook Islands and Timor Leste.

We also have a substantial presence in Papua New Guinea, which plays an important role within our Institutional business.

Suva remains the location of our Pacific headquarters after it was shifted from ANZ’s Melbourne headquarters in 2013. We have a team of 700 in Suva led by Country Head Rabih Yazbek. Our Pacific business is led by Sarah Stubbings.

The team in Suva provides operational support for both ANZ Fiji as well as the other seven countries across the Pacific. The vast geographic spread of our business makes it hard for me to visit all our locations regularly, with the pandemic having made it even more challenging.

However, this year I’ve visited 10 of our 29 markets, including Papua New Guinea in August. The Solomon Islands was the last place I visited in the Pacific in 2020 before the borders closed, due to COVID-19.

Fiji’s swift rebound from the pandemic-induced downturn has been impressive. The economy is doing better than it was in 2019, after leading the way with opening borders to tourists.

One of the privileges of my role as CEO is to experience and see both the cultural and economic diversity of the markets in which we operate.

Financial inclusion

Since our beginnings in Tasmania in 1828, ANZ’s purpose has been to shape a world where people and communities thrive.

One way we can do that is by helping tackle key societal issues like improving people’s financial wellbeing, environmental sustainability and access to housing.

On financial wellbeing, ANZ’s flagship financial wellbeing program is MoneyMinded. Since 2011, more than 70,000 Pacific Islanders have participated in the program.

We are now expanding our efforts with a pilot of our matched-savings program, Saver Plus, in both Fiji and Vanuatu. As part of the pilot in Fiji, ANZ has worked with the United Nations Development Programme to support market vendors over 10 months to set a business or education savings goal, save a consistent monthly amount and attend 10 hours of financial education.

If they complete the program, ANZ will match their savings, up to 500 Fijian dollars for business or education items. Advancing financial literacy is key to our efforts in the Pacific, as is facilitating payments into, and out of, the region.

This helps connect the region with global markets, supporting Pacific Island economies through trade, tourism and the movement of people. Since 2020, we have supported Pacific Islanders by waiving key international money transfer fees on payments from Australia and New Zealand to our Pacific markets.

Regional payments

We also have more than 100 correspondent banking relationships across the Pacific, including where we provide clearing services for Pacific currencies and Australian and New Zealand dollar clearing services for Pacific banks.

Through this network, we facilitate about 25 per cent of all payments into the Pacific, and around 15 per cent of all payments out of the region.

This makes us one of the largest providers of both banking and correspondent banking services across the region. ANZ’s presence also helps other banks service the Pacific.

We operate in 29 markets across the world and it’s vitally important to build trust and establish strong relationships with regulators, central banks and key stakeholders in all markets.

We do this by complying with our regulatory obligations and being transparent on the areas our regulators are interested in. Where possible we also collaborate with regulators to support them in promoting a safe and resilient banking sector in all the markets we operate.

In instances where we may have a difference of opinion with regulators, it’s important we have open and constructive conversations.

Challenges in the Pacific

Over the decades, ANZ has grown alongside the communities we serve, adapting to the changing needs of our customers and the evolving economic landscape.

The Pacific Island region presents unique challenges due to relative size of its economies and the complexity of doing business across diverse legal, regulatory and tax environments. Each country has its own laws, regulations, customs and tax systems, which can create additional costs for businesses.

Despite these challenges, we remain committed to generating fair returns, supporting customer aspirations and helping grow the communities we serve.

Recently the Australian Government announced we are in discussions regarding our shared commitment to providing ongoing banking services in the Pacific Island region, including Timor Leste.

Our long-standing relationships with stakeholders, including governments, central banks and international organisations, have enabled us to boost the region's growth and prosperity.

As an organisation, we think of ourselves as more than a bank – as an important contributor to Fiji's economic development.

Over the past five years, across the Pacific we have invested approximately 140 million Fijian dollars in buildings, systems and technology, and paid an average annual 110 million Fijian dollars in corporate taxes. We employ over 1,200 people across the Pacific paying 96 million Fijian dollars in wages.

Our financing of vital infrastructure, such as the upgrade to Nadi International Airport, highlights our support of sustainable development. These investments not only enhance our operational capabilities but also contribute to the overall economic growth and development of Fiji.

Bright future

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Shayne Elliott speaking at the Reserve Bank of Fiji.

At a recent event at the Reserve Bank of Fiji, Governor Ariff Ali said, “I think most people don’t appreciate the role of financial institutions. It is astounding to me that a century and half ago when there were no mobile phones or internet, someone decided to sail to Fiji and set up a bank.”

“It is a great story. ANZ has helped grow the Fijian economy by supporting private sector credit, as well as contributions to the wellbeing of people in Fiji.”

I agree, it was courageous and greatly ambitious of our predecessors to sail across the seas and set up our bank in places like Tasmania, New Zealand and Fiji. I take great pride in being a custodian of ANZ for those before us, and those after us.

As we look to our future in the Pacific, we are focused on supporting private sector investment, enhancing financial inclusion and contributing to the sustainable development of the Pacific economies.

ANZ's business in Fiji and the Pacific is built on more than 140 years of trust, partnership and shared vision. And we look forward to continuing that journey in the Pacific.

Shayne Elliott is CEO of ANZ.

This is an edited extract of a speech Shayne Elliott gave at an event in Fiji on December 2.