ANZ tries harder on small business

In March ANZ launched its first marketing campaign aimed at small business - an indication that this segment has become a substantial business for the bank and has the potential to get bigger.

Since 2004 ANZ has increased the number of small business customers from 190,000 to 266,000, according to yesterday's investor presentation, and increased its small business loan book from $1.9 to $3.8 billion.

The bank defines the small business market as companies with turnover of up to $1 million, up to five employees and loan requirements of up to $100,000.

It estimates that there are 1.3 million businesses in this category and forecasts that demand for credit in the segment will increase by 18.8 per cent in the coming year.

ANZ managing director of small business banking, Rob Goudsward, said small business staff numbers had increased from six to 220 over the past three years. More than half of those staff members work in the branches.

Goudsward is hoping to maintain high growth rates in the business by developing some specialist teams, covering retail, new migrants, franchisees, women and home-based workers.