Original article by Roy Morgan
Market Research Update – Page: Online : 25-Feb-20
The 2019 Roy Morgan Customer Satisfaction Awards have been presented in Melbourne. This year’s awards added six new banking and finance categories, taking the total list of winning banks, insurers and superannuation funds to fourteen. Commonwealth Bank (Major Bank) continued its dominance by securing its seventh straight customer satisfaction award. Bank Australia (Bank) and Newcastle Permanent Credit Union (Building Society/Credit Union) both recorded their first win of the annual award. RACT (General Insurer) and RAC (Major General Insurer) won their respective categories with seven and 12 monthly wins respectively. Insuranceline (Risk and Life Insurer) took out its third annual award, and MLC (Major Risk and Life Insurer) was a first-time winner. Tasmanian-based St.LukesHealth (Private Health Insurer), Defence Health (Major Private Health Insurer – Not for Profit or Restricted) and ahm (Major Private Health Insurer – Retail) were the other insurance category successes. Macquarie (Retail Superannuation Fund) fought off stiff competition to win another annual award, whereas Colonial First State (Major Retail Superannuation Fund) won comfortably with 11 monthly awards. HESTA (Major Industry Superannuation Fund) was welcomed to the winner’s podium for the first time.
ROY MORGAN LIMITED
Original article by Cliona O’Dowd
The Australian – Page: 20 : 17-Feb-20
A report from Deloitte notes that there was a seven per cent decline in new mortgage settlements in 2019. However, the latest edition of its Australian Mortgage Report shows that lenders and brokers expect a 2-3 per cent increase in mortgage settlements in 2020. Heather Baister of Deloitte says mid-tier lenders such as Macquarie and Citibank could benefit the most from the expected upturn in settlements.
DELOITTE TOUCHE TOHMATSU LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, CITIBANK PTY LTD
Original article by Joyce Moullakis
The Australian – Page: 19 & 23 : 14-Feb-20
Wealth manager AMP has posted a statutory loss of $2.5bn for the 2019 calendar year, while its underlying profit fell by 32 per cent to $464m. A $2.35bn impairment charge in the first half was the major contributor to the big loss. Meanwhile, AMP’s wealth division recorded net cash outflows of $6.3bn for the year, and CEO Francesco De Ferrari says outflows are likely to be high again in 2020. AMP has advised that its customer remediation program is expected to be completed in 2021.
AMP LIMITED – ASX AMP
Original article by Joyce Moullakis
The Australian – Page: 17 & 20 : 10-Feb-20
The China Banking & Insurance Regulatory Commission is understood to have given its approval for AMP’s $2.5 billion divestment of AMP Life to Resolution Life. However, the transaction still has a number of hurdles to overcome, including approval from the Reserve Bank of New Zealand and Australia’s Foreign Investment Review Board. Hamish Carlisle from Merlon Capital Partner says that if Chinese regulators have approved the transaction then this should be disclosed to the Australian sharemarket
CHINA BANKING AND INSURANCE REGULATORY COMMISSION, AMP LIMITED – ASX AMP, AMP LIFE LIMITED, RESOLUTION LIFE GROUP LIMITED, RESERVE BANK OF NEW ZEALAND, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, MERLON CAPITAL PARTNERS PTY LTD
Original article by James Frost, Aleks Vickovich, James Eyers, Sally Patten
The Australian Financial Review – Page: 1 & 10 : 31-Jan-20
Terry McMaster claims the Hayne royal commission, which handed down its final report in February 2019, was a waste of time and money. McMaster, the former head of Dover Financial, is the only person to be convicted as a direct consequence of the commission thus far. A number of high-profile executives left the financial services sector after appearing before the commission, or being implicated in evidence presented to it; only a small number of those individuals have returned to corporate life. One witness has stated they felt they were abandoned by their company after appearing before the commission, while some hold the view that women wore the burden of the commission disproportionately to men.
DOVER FINANCIAL ADVISERS PTY LTD, AMP LIMITED – ASX AMP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, IOOF HOLDINGS LIMITED – ASX IFL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC
Original article by James Eyers
The Australian Financial Review – Page: 21 : 17-Jan-20
Macquarie Group expects a further decline in credit card lending and revenue over the medium-term, as consumers continue to embrace alternative payment methods. Credit cards and payments account for some $1.7bn of major Australian banks’ revenue, and Macquarie believes that up to 45 per cent of this could be at risk due to the growth of ‘buy now, pay later platforms’ and other payment solutions. German notes that banks are also facing growing competition from fintechs in the foreign exchange market.
MACQUARIE GROUP LIMITED – ASX MQG
Original article by Gerard Cockburn
The Australian – Page: 14 : 16-Jan-20
Documents released under Freedom of Information laws shows that the Reserve Bank of Australia had expressed concern about the growth of ‘buy now, pay later’ platforms in March 2019. The internal memorandum cautioned that the rapid growth in such platforms is beginning to present a risk to financial stability, and noted that some consumers may not fully understand the risks associated with these platforms. However, the central bank also concluded that buy now, pay later services can be more beneficial to some consumers than credit cards.
RESERVE BANK OF AUSTRALIA, AFTERPAY LIMITED – ASX APT, ZIP CO LIMITED – ASX Z1P, GOLDMAN SACHS AUSTRALIA PTY LTD
Original article by James Eyers
The Australian Financial Review – Page: 13 & 16 : 15-Jan-20
The Australian Competition & Consumer Commission is responsible for the accreditation of financial services providers under the federal government’s ‘open banking’ regime. However, Fintech Australia has criticised the complexity of the process, and notes that it is expected to cost financial technology companies between $50,000 and $100,000 to gain accreditation. Fintech Australia contends that this cost will be prohibitive for many business start-ups. The open banking regime will commence in July, after initially being slated to begin in February.
FINTECH AUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION
Original article by David Rogers, Michael Roddan
The Australian – Page: 13 & 17 : 24-Dec-19
Data from the Reserve Bank of Australia shows that lending to businesses and property buyers increased by 0.1 per cent in November and 2.3 per cent in the year to November. This is the lowest rate of growth in private sector credit since April 2010. The figures also show that growth in home loans was 0.2 per cent in November and 2.9 per cent year-on-year, while non-housing credit fell by 0.5 per cent in November and 4.9 per cent year-on-year.
RESERVE BANK OF AUSTRALIA, COUNCIL OF FINANCIAL REGULATORS, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CORELOGIC AUSTRALIA PTY LTD
Original article by James Fernyhough
The Australian Financial Review – Page: 16 : 5-Dec-19
The Australian Securities & Investments Commission will crack down on the practice of hawking in the financial services sector. Insurers will not be allowed to sell life and consumer credit insurance products via unsolicited telephone calls from 13 January. ASIC says no insurer had objected to the proposed ban during a consultation period. The Hayne royal commission had recommended a total ban on cold calling for all insurance and superannuation products.
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMINSURE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SELECT AFSL