ANZ's dumping of M&C Saatchi a sign of the times

ANZ bank in Australia has dumped its ad agency M&C Saatchi, but the agency has no idea why.

M&C worldwide chairman Tom Dery said the bank would not be renewing its contract with the agency at the end of the month.

The move is obviously a sign of a push for major change within the bank, and it seems eerily significant considering claims by banking industry insiders that ANZ New Zealand is preparing to kill off its National Bank brand locally.

Insiders say the switch is due to happen within two months.

M&C Saatchi in New Zealand lost the ANZ work in 2009 and it was picked up by DDB.

“It’s hard to pick one reason why it’s happened,” Mr Dery said of the M&C dumping in Australia. 

“We understand organisations change in style and structure and it may well reflect what’s happening within ANZ.

“We’ve enjoyed a lengthy, fruitful relationship with ANZ.”

M&C has had the account for 14 years.

“[That] is a long time in anybody’s language but is a lifetime in advertising, especially for an agency to partner a blue chip client.”

DDB and TBWA are tipped to share the account in Australia.

Last month NBR reported that the National Bank brand was on shaky foundations in spite of its advertising – by DraftFCB – tracking extremely well.

New Zealand is the only market where two big banking brands exist within the ANZ framework.

There’s also UDC Finance, Bonus Bonds and Onepath.

Recent developments within ANZ New Zealand seem to underpin the move.

In early February the company announced significant restructuring under which 15 regional management roles and 30 back-office support jobs were affected.

Chief executive David Hisco, who was appointed to the role in September last year, said the changes were about “less bureaucracy” getting in the way of customers.

Several weeks ago ANZ sent out letters to its customers and “community partners” announcing the company was putting in place “a single regional management structure, responsible for both ANZ and the National Bank”.

And while ANZ New Zealand will say it is “disappointed” at the rumours, it won’t deny them.