ANZ deal fantastic for ING: Fyfe

Former ING New Zealand managing director Paul Fyfe says ANZ's proposal to buy the remainder of ING is a good deal.

Wednesday, October 7th 2009, 7:56AM 3 Comments

"It will be very good for the ING business," he says.

Fyfe was in charge of the company when the joint venture deal was done. While he finished his role as MD in 2006 he has been a consultant to ING up until May this year.

He says one of the benefits of buyout is that there will be "one company, one strategy."

Under the joint venture there has been friction between the two parties from time to time, most recently in the funds management side over the failure of the Diversified Yield and Regular Income funds.

Fyfe says under ANZ's ownership there is likely to be a review of the ING business and its products, and changes made. He suggests there is a very good chance that ING will become the model for what ANZ does in Asia.

Fyfe expects the independent financial adviser network will also be under review.

One opportunity he can see for the bank is that it builds a network of paraplanners.

Fyfe is pleased that the deal has been done and says that ANZ is a better home for the New Zealand business than being part of a Dutch-based financial services group.

"The family (ING) is in now, is better than the family there were in," he says.

"The result will be fantastic for ING."

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Comments from our readers

On 9 October 2009 at 10:20 am Malic said:

What are you smoking these days Paul? I want some.....

On 9 October 2009 at 5:34 pm Independent Observer said:

Despite the assurances from ING and staff, this deal will see the inevitable digestion of ING by a bank. In turn, the bank will accelerate their pursuit of cheaper sources of funding.

If this scenario is correct: why would the bank want to get involved in dispensing financial planning advice / paraplanning? Doesn't make a lot of sense when you start thinking about it.

On 12 October 2009 at 11:35 am Peanut Head said:

ANZ didn't pay $1.7 odd billion to buy an Ice Cream factory just to remove all the ice cream making equipment. ING has been built in Australasia on the back of independent advisers supporting ING products and processes. I don't think ANZ are going to boot out the model which is going to repay there investment over the long term, that would just be silly. Malic probably smoking the best Cuban cigars.