Co-operative Bank chief executive Bruce McLachlan rushed into the Dunedin branch apologising profusely for being late for an interview with the Otago Daily Times.
Priding himself on knowing the street address of every branch in New Zealand, despite being in the job for only a few months, Mr McLachlan drove past the George St branch, missing it because it was obscured by a bus at the stop outside.
The good news for Mr McLachlan is that Dunedin people are aware of the bank and what it is now offering to its growing list of customers.
Mr McLachlan was in Dunedin to congratulate branch staff on leading the bank's customer number growth last month.
"Dunedin is leading customer growth - the highest in the whole country - because we have a good team here," he said.
Some of the customers were arriving from right across George St, from the National Bank. They were disgruntled with being forced to change to being ANZ customers, Mr McLachlan said.
"National Bank customers were passionate about the 'Black Horse' brand. To them, being a National Bank customer is about more than just the colour of the brand."
Settling into the interview, Mr McLachlan acknowledged banks were getting plenty of media coverage following the ANZ announcement. Banks were "creating a frenzy" in the market as they attempted to take customers away from each other.
It had become important for the Co-operative Bank to make people aware of what the bank could offer and the relationship they could have with it, he said.
"We are absolutely sure a lot of people are looking for a New Zealand connection. There is around $2 billion a year of bank profits heading across the Tasman to Australia.
"New Zealanders know that's not sustainable for this country. They are looking for alternatives."
The Co-operative Bank had not joined the cut-throat frenzy but had decided to push its New Zealand ties and that it was owned by its customers. Any profits would be distributed back to its customers, Mr McLachlan said.
While no dividends had been paid out yet, the board had decided that dividends would be declared in the future, and paid out to the customers.
Changes to the Reserve Bank capital rules meant the bank needed to be sustainable in any action it took. Once those rules were met, dividends could be declared.
"We have 31 branches stretched from Whangarei to Invercargill and we are right here in 'main street' New Zealand. And we have the best service in the market."
The Co-operative Bank achieved a 100% customer satisfaction rating in a Consumer magazine survey released this month. The bank also got top rankings across internet banking, branch service and phone banking. Last year, the bank won the Canstar Blue consumer award for the most satisfied customers in banking with a five-star rating in every category, he said.
Customers controlled the bank through the annual election of directors. Elections usually attracted large interest from members and if customers did not like the way the bank was being run, they could indicate that through the elections, he said.
"We operate on principles not price, something our customers appreciate. We provide an authentic Kiwi experience. There is nothing robotic about it."
Mr McLachlan believed there was an international groundswell of support growing for co-operative banking. People had looked to the co-operative model when the financial systems around the world had failed. The few banks that did not need a taxpayer bail-out in the United States, United Kingdom and Europe were co-operatively-based.
"Our origins are with the PSIS but we are now very different. Being from the PSIS our membership was dominated by public servants. We are now a bank for all New Zealanders. We have an attitude of caring for New Zealand and caring for the people in it. We don't target a demographic, just people who think like us."
The Co-operative Bank has recently forged a community partnership with Forest and Bird and looked forward to supporting the organisation in community projects, he said.
Mr McLachlan aimed to visit all of the bank's branches within a short time, to set the policy direction and also to reaffirm the bank's values to staff and customers.
"The danger for any organisation is getting a new chief executive who moves away from the core principles. Our difference to others is our strength. It feels good and it feels right. I am very excited about our future," he said.
AT A GLANCE
Bruce McLachlan
• Age 50
• Married with three children
• Lives in Auckland and Wellington
• Chief executive of the Co-operative Bank
• Previous roles held at National Australia Bank, BNZ and the Reserve Bank
• Played national league football in the 1980s
• Keen on gardening, boating and hiking
