National Australia Bank (NAB) was established in 1982. It is a financial company headquartered in Melbourne, Australia. The National Bank of Australasia came into existence in 1858 when Alexander Gibb, along with Andrew Cruickshank, a local merchant and priest, raised the capital required for establishing the Bank.
It is among the four big banks in Australia with over eight million customers and 32000 employees, making it the largest business bank in Australia. It provides both private and corporate banking. Its services include credit and access card facilities, leasing, housing, general finance, international banking, investment banking, superannuation insurance, and online banking to its retail and business clients, including SMEs and Australia’s largest institutions.
National Australia Bank Acquires Citi’s Australia Consumer Business
The National Bank of Australia is structured around regional banking and wealth management operations, active in international capital markets and institutional banking business. In 2021, it announced that it had entered into a sale and purchase agreement with Citigroup to buy their consumer business in Australia.
The acquisition was dependent on certain conditions, including approvals from the commonwealth treasurer, the Australian Competition and Consumer Commission (ACCC) and the Australian Prudential Regulation Authority (APRA). The deal was finalised in June 2022, and Citigroup was appointed to provide transitional services.
Other Acquisitions of NAB
- In 1987, National Australia Bank acquired Clydesdale Bank (Scotland) and Northern Bank (Northern Ireland and the Republic of Ireland) from Midland Bank. It then rebranded Northern Bank branches in the Republic of Ireland to National Irish Bank.
- In 1990, NAB acquired Yorkshire Bank (England and Wales).
- In 1992, NAB acquired the Bank of New Zealand.
- In 1995, NAB acquired Michigan National Bank (MNB).
- In 2000, NAB acquired MLC Limited. The acquisition is considered one of the biggest mergers in Australian corporate history. That year, NAB also sold Michigan National Bank to ABN AMRO.
- In 2005, NAB sold Northern Bank and National Irish Bank to the Danish Danske Bank.
- In 2008, NAB launched a branchless direct bank trading separately as UBank.
- In 2009, NAB acquired the mortgage business of Challenger Financial Services, including the PLAN, Choice, and FAST mortgage aggregation businesses.
- In June 2009, NAB acquired the UK insurer Aviva‘s Australian wealth management businesses, including their Navigator platform.
- In July 2009, NAB acquired the private wealth management division of Goldman Sachs JBWere.
- In 2015, NAB demerged its Clydesdale and Yorkshire Bank business in the UK through an initial public offering. The business was floated in the London Stock Exchange and Australian Securities Exchange under a new holding company, CYBG plc.
- In 2021, NAB acquired Neobank and subsequently merged it with UBank.
Conditions Imposed by the EU
On May 2, 2022, the Australian transaction reports and analysis centre (AUSTRAC) received an enforceable undertaking from the National Bank of Australia. The contract was accepted to enhance the bank’s compliance structure and make it work according to Australia’s anti-money laundering and counter-terroris financing laws.
The following conditions were imposed on NAB:
- Hire an external auditor to provide a final independent auditor’s report by March 31, 2025.
- See any deficiencies or concerns identified by AUSTRAC regarding the activities in the remedial action plan.
- Finalise a remedial action plan approved by AUSTRAC by December 31, 2024
Digital transformation
With the ever-evolving digital world, the National Bank of Australia realised in 2017 that it needed to upgrade and widen its existing customer base and capabilities to grow and stay ahead of its competitors. NAB made this transformation possible through an alliance with Amazon Web Services, which provided an operating model that helps with cost optimisation and infrastructure management.
In April 2018, NAB Cloud was launched as an internal training apparatus; within two years, more than 4,200 employees were trained through it. The bank has trained more than 7,000 employees in cloud skills since 2018.
Buy Now, Pay Later
National Australia Bank’s newly launched service ‘buy now, pay later’ has been in the news because of its unique features. It allows the customer to make purchases through four fortnightly repayments, which is interest–free. With the help of this, the customers can avail up to $1,000 in split purchases.
Recruiting tech interns
NAB will be recruiting 500 tech interns in July under the intern programme that offers advanced training within the bank, including the “NAB Cloud Guild”. The recruits will learn, practice, and polish their skills, including cloud, data analysis, digital engineering, data and AI, cyber security and financial crime.
National Australia Bank has invested in Archistar, a property intelligence platform that combines architectural designs with artificial intelligence to enhance decision-making abilities in real estate. The funding will allow the automatic assessment of 3D home designs for compliance with planning costs.
In January 2004, the National Australia bank disclosed to the public that it had identified losses because of unauthorised trading in foreign currency amounting to AUD360 million. Despite incurring substantial losses in the past, the NAB is doing well, thanks to its strategies of building trusting relationships with customers and offering unrivalled services. The bank has seen a significant increase in opening new business accounts over the last year, up 36%.
Below, we have discussed some FAQs about NAB. Kindly read them as well.
Who Owns National Australia Bank?
NAB is a locally-owned public company, deriving revenue through the provision of banking services, including investment banking, trustee and nominee services, credit and access card facilities, financing and funds management
How many branches does National Australia Bank have?
The bank serves over 8 million customers at over 900 locations throughout Australia, the United Kingdom, New Zealand, and worldwide.
What is the net worth of NAB?
The total assets of National Australia Bank (NAB) amounted to over 925 billion Australian dollars at the end of September 2021. It is one of the largest four banks in Australia in terms of market capitalisation, earnings, and customer reach.
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