UDC Finance Limited
Encyclopedia
UDC Finance Limited is a finance company in New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

. UDC's main expertise is now in providing asset-backed finance
Asset-backed security
An asset-backed security is a security whose value and income payments are derived from and collateralized by a specified pool of underlying assets. The pool of assets is typically a group of small and illiquid assets that are unable to be sold individually...

 for plant, vehicles and equipment, where they do not rely on land or buildings as security. UDC also offers a range of investment products such as secure term investments and call accounts. Now a wholly owned, independently operated subsidiary of the ANZ National Bank Limited UDC's investments are not guaranteed by ANZ. Combined with Esanda Finance
Esanda Finance Corporation Ltd
Esanda Finance Corporation Limited is an Australian finance company. It deals in car and boat finance as well as insurance. It is a wholly owned subsidiary of ANZ Bank.-External links:*...

, its Australian partner, UDC is the 15th largest finance company in the world.

Distinctive corporate culture

The dominant figure in the first 30 years of UDC was founder manager Dr Otto Simon Heymann (1887–1974) Ph.D. (Heidelberg), a German banker who came to New Zealand at the age of 50 after fleeing Nazi Germany. He was Deputy General Manager of Dresdner Bank
Dresdner Bank
Dresdner Bank AG was one of Germany's largest banking corporations and was based in Frankfurt. It was acquired by competitor Commerzbank in December 2009.- 19th century :...

 then second largest of the big three German banks. He created this business in Wellington in 1938 with the backing of local businessmen. In accordance with government policy of the day, no banking licence would be issued to them.

In 1951, the company became known as United Dominions Corporation (South Pacific) Limited under London-based bankers, United Dominions Trust Ltd, which had been invited to purchase a shareholding to establish international ties. In the short term this strategy soon proved to have been a mistake. As a now foreign-owned company its ability to expand was limited by government regulation. However in the 1960s the government relaxed regulations of trading banks and finance houses, allowing United Dominions Trust to sell 20% of its shares. UDC's own bankers did not participate but elected to set up their own independent operation, BNZ Finance Limited, and those shares were instead sold to Australia and New Zealand Banking Group in 1965.

Dr Heymann retired when past the age of 80 and handed the reins to his son Stephen Heymann who, a short time later, died young of cancer in 1972. Dr Gert August Lau Ll.D. (Leipzig), also a former Dresdner Bank
Dresdner Bank
Dresdner Bank AG was one of Germany's largest banking corporations and was based in Frankfurt. It was acquired by competitor Commerzbank in December 2009.- 19th century :...

 employee, maintained a close interest in UDC until his sudden death in 1976 when he was a Director of both UDC and ANZ and other major private as well as listed companies.

These particularly highly educated German bankers were trained to advise clients and help their businesses to raise capital. Their approach was to think of themselves as rather like family doctors, whose job it was to get to know their clients well, understand their problems and act in their best interest. Not all potential clients were accepted. UDC's ethos
Ethos
Ethos is a Greek word meaning "character" that is used to describe the guiding beliefs or ideals that characterize a community, nation, or ideology. The Greeks also used this word to refer to the power of music to influence its hearer's emotions, behaviors, and even morals. Early Greek stories of...

differed from that of its competitors.

ANZ Banking Group

UDC was briefly listed on the New Zealand Stock Exchange. In 1980, ANZ bought all the shares in the company that it did not already own; giving UDC shareholders ANZ shares in exchange. UDC then became a wholly owned subsidiary of ANZ Banking Group (New Zealand) Ltd and was delisted from the stock exchange.
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