ANZ Banking Group has spun out its innovation and investment arm, ANZi, into a separate entity called 1835i.
The bank said the new operating model would allow 1835i to run "more like a start-up, without the same regulatory requirements that ANZ has as an authorised deposit-taking institution."
ANZ will still fund 1835i’s investments and governance, with ANZi's managing director Ron Spector overseeing the new business.
Spector has already appointed three partners with experience at ANZ and the start-up industry to assist with the transition.
“Speed, agility and low costs are key ingredients to successful start-ups and help drive innovation,” said Spector.
“We’ve made some great progress to date and the time is right for the next stage of our development."
Speaking on an ANZ Bluenotes podcast, Spector said the new venture will operate better now that it sits outside of ANZ’s “gravitational pull”.
“We see a big speed component, business efficiency and a cost advantage.
“We also have a better chance in a highly competitive environment to recruit and retain the best talent.
“I don't think anybody is struggling with the strategy of what financial services institutions need to do to respond to the digital revolution and disruption from technology platforms.
“It's all about execution and [that] comes down to the people.”
ANZ group executive digital and Australia transformation Maile Carnegie said “the 1835i team will remain an important part of ANZ’s ecosystem and our focus on making ANZ a simpler, better bank.”
“Through 1835i, the team will be able to accelerate development and testing of digital solutions that ANZ can adopt quickly to deliver great customer experiences at lower costs,” Carnegie said.
On the podcast, Carnegie said the new team will be able to move faster and accelerate benefits for shareholders.
“We're on the cusp of something really exciting,” Carnegie said.