ANZ is one of the largest banks in Australia and New Zealand and is a major financial entity worldwide.  It opened its first office nearly 150 years ago and today is amongst the top 50 banks in the world. It is one of the five largest companies in Australia and the top financial institution in New Zealand.  It has 1265 worldwide points of representation with operations in Australia, New Zealand, Asia, the Pacific, UK/Europe and the USA. (ANZ Official Website) The banking industry is significantly affected by the political, legal, socio-cultural and technological factors.

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  The impact of these factors on ANZ Bank can be evaluated in detail by conducting a PESTEL (Political, Economic, Environmental and Legal) analysis to determine the driving forces as well as the hurdles or challenges which the bank faces today and might face in the future.

Political Analysis

            Banks have become increasingly global in today’s business environment and thus the geo-political environment can have an immense impact on a bank’s operations and profitability.

         The same is true for ANZ Bank. The current political instability in Iraq and the ongoing war by the US and its allies, the defiant attitude of North Korea and the increasing terrorist activities all around have affected business overall. Furthermore, political strife in the Pacific region for instance in Fiji, Solomon Islands and Tonga have an impact on all major economies of this region and in turn affect their growth rates and creditworthiness for banks as well as investment levels and business prospects within these areas. (Tai, Baeau: 2007)

Economic Analysis

            Worldwide and regional economic growth obviously has a tremendous effect on a bank’s revenue and profit generation capabilities. The economic environment for ANZ has been fairly positive to date and the same trend is expected to continue in future as well. The world economy has expanded by 5.4% last year.  This is the fastest expansion rate since 1973 which is expected to last throughout 2007 and 2008. The primary reason for this expansion is the strong economic growth in developing nations. Similarly, the Australian economy, where ANZ is headquartered, is also in a growth phase and has continued its 15th year of expansion which is an extremely impressive achievement. This record breaking expansion will continue in the years to come. On the other hand, growth rates for New Zealand are not that high and it is expected that expansion levels will remain low for the next two years. Nevertheless, the economic environment overall is extremely positive for ANZ and indicates several business opportunities for the bank in the next few years. (Eslake, Saul et al: 2007)

Technological Analysis

            Technological factors also play a role in a bank’s overall operating efficiency and customer satisfaction.  ANZ is a step ahead in this regard and is committed to ensuring that it “has a medium to long term vision for technology.” In order to remain competitive it is important for the bank to anticipate technological changes and outline a strong technology strategy. That is why ANZ uses technology specialists to develop technological skills as well as deploy new and improved technologies as well as identify the opportunities and risks associated with emerging technologies. (ANZ Technology Committee Charter: 2007)  For example the bank has introduced full digital certificate technology which offers a more secure online environment for its customers.  This has helped ANZ complement its trust and security initiatives and to sustain its position as a global leader in the financial industry.  (ANZ Official Website)

Legal Analysis

            All financial institutions are required by law to comply with regulations and standards. The same rules apply to ANZ as it has to ensure compliance with all legal requirements pertaining to its business operations. Moreover, the fact that ANZ has operations in a large number of countries, the bank is affected by laws and regulations in every jurisdiction it operates in. Thus, it has to establish standards and objectives which are in line with international legal guidelines. For example in Australia the Bank has to operate under the requirements of the Banking Act 1959 and has to hold an Australian Financial Services License under the Corporations Act 2001. Similarly the bank has to participate in government advisory bodies in order to engage with regulators and government officials on a regular basis as well as outline corporate governance policies in accordance with government standards and guidelines.
Social and Environmental Analysis

            Environment and social factors present several risks to financial institutions especially in their lending activities. The same is true for ANZ.  That is why the bank has developed a Social and Environmental Issues Policy to monitor and identify potential social risks especially in its credit approval process.  The bank uses client screening tools to assist in the credit approval process and identify high risk and low risk borrowers according to their social standing. Moreover, the bank has implemented the Equator Principles which has helped it to develop social and environment policies that are applied for all its lending and investment decisions especially in developing countries.  These steps help the bank minimize the negative impact of social factors as well as identify business opportunities in light of the social environment. (ANZ Official Website)


Information about ANZ from its official website
Baeau, Tai. Political Troubles Cause for Economic Uncertainty.  Islands Business. Available online at
Eslake, Saul et al.  ANZ Economic Outlook. June Quarter 2007
ANZ Technology Committee Charter. February 2007. Available online at


ANZ – PESTEL ANALYSIS Essay. (2016, Jul 04). Retrieved from

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