Australian Banking & Finance articles from August 2003

Australian Banking & Finance archives from August 2003

Credit card strategies questioned.(report on consumer credit market by McLean Roche Consulting Group)
August 15, 2003... NEW ENTRANTS TO THE Australian credit card market such as Richard Branson's Virgin Group are likely to achieve success at the expense of the major total players because they are not weighed down by high cost reward programs. They are...

Bank boost net services: latest research on internet banking has buried claims the banking industry is not properly servicing the small business sector.(Market Intelligence Strategy Centre study)
August 15, 2003... Leading industry analysts MISC Australia (Market Intelligence Strategy Centre) has just released figures showing growth in the use of internet banking by SMEs has exceeded growth rates for all online banking as the channel enters a new phase of...

CUA offers share trading facility.(Credit Union Australia)(Brief Article)
August 15, 2003... CREDIT UNION AUSTRALIA has expanded its range of member services with the introduction of a CommSec share trading facility. CUA managing director Graham Olrich said the facility would work through a partnership with CommSec and be...

European banks spend more on fraud prevention.(Current Account)(Brief Article)
August 15, 2003... EUROPEAN BANKS SPEND ON average two to three times as much per online banking customer on fraud prevention technologies compared to their American counterparts. The annual amount test to online banking fraud in Europe pates in comparison...

Banking world.(Current Account)(Brief Article)
August 15, 2003... Caption: A bank teller handles a Stack of Chinese Yuan over US bank notes in Shanghai. China faced new calls to let its currency rise When 25 trade ministers from Europe and Asia met in its eastern port city of Dalian. Domestic economic...

New product to cut processing cost base.(Smart Dispute)(Brief Article)
August 15, 2003... A NEW PRODUCT THAT HELPS credit and debit card companies minimise unnecessary write-offs, improve operational efficiency and reduce the cost of processing card charge disputes has been launched by Pegasystems. Smart Dispute, built on the...

St George secures e-commerce business.(eFunds Verified by Visa)(Brief Article)
August 15, 2003... ST GEORGE BANK HAS IMPLEmented the eFunds Verified by VisaT system to allow its internet merchants and Visa credit card holders to conduct secure e-commerce transactions. The system is available to more than 250,000 registered St George...

On the record.(David Morgan, Mike Pratt, Bob Jones and John Symond quoted)(Brief Article)
August 15, 2003... "I am enjoying the job. I've got the best job in the country. I am in good health. I don't want to be Reserve Bank governor. There is no other executive job I want." WESTPAB CHIEF EXECUTIVE DAVID MORGAN ON HIS FUTURE. "It is the major...

BankWest adopts new credit solution.(Bank of Western Australia Ltd. adopts SAS Risk Management Solution )
August 15, 2003... BANKWEST HAS CHOSEN THE SAS Risk Management Solution for Basel II and the SAS Credit Scoring Solution. These solutions will help BankWest to meet Basel II and APRA's requirements for advanced credit risk accreditation for its Basel II...

Executive suite.(Brian Johnson comments on bank stocks, mortgage lending and National Australia Bank Ltd.)(Brief Article)
August 15, 2003... Brian Johnson, bank analyst at J.P. Horgan Chase & Co comments on the outlook for Australian bank stocks, mortgage tending, earnings growth in 2004, and his top pick of National Australia Bank Ltd. Johnson briefed overseas investors in the past...

Credit unions view cheques on screen.(ChequeView, developed by KAZ Group Limited, launched by Credit Union Services Corporation (Australia) Ltd.)(Brief Article)
August 15, 2003... AN ONLINE ACCESS SERVICE enabling credit unions to view their members" cheques and signature cards has been launched. ChequeView delivers substantial efficiencies and financial benefits for credit unions and their members. Developed...

RAMS welcomes first tranche of franchisees.(Rams Home Loans)
August 15, 2003... RAMS HOME LOANS has signed up and inducted its first tranche of franchisees--covering an initial 17 territories in NSW, Victoria and Western Australia--to own and manage its nationwide RAMS home Loans centre network. RAMS chief executive...

St George confident of maintaining impetus: Gail Kelly replaced half her executive team when she took charge of St George Bank 18 months ago.(St. George Bank Ltd.)
August 15, 2003... Since then the bank has vaulted into 10th place among the nation's biggest companies by market value, up from 19th. Kelly, 47, the only woman chief executive among Australia's top 70 companies, was voted the country's best...

Managers urged to articulate 'clear vision of compliance'.(News)(financial services industry survey)
August 15, 2003... EFFECTIVE INTERNAL CONTROLS and an embedded culture of compliance are the keys for financial institutions to protect against reputational risk, according to a global report by PricewaterhouseCoopers. The report, produced by PwC in...

Paperless mortgage solution.(News)(Doc Central developed by General Electric Co. Mortgage Insurance Cos.)(Brief Article)
August 15, 2003... GE MORTGAGE INSURANCE IS in the final stages of development of "Doc Central," a new online offering designed to help originators and underwriters eliminate paper and decrease turnaround time throughout the mortgage process. The "paperless...

QBE secures top position at Lloyds.(QBE Insurance Group Ltd.)
August 15, 2003... QBE INSURANCE, AUSTRALIA'S largest international property and casualty insurer, snared top rank at Lloyd's of London by increasing underwriting in the world's largest insurance market by 25%. QBE boosted premium capacity at Lloyd's to 1.04...

Westpac head of business and consumer banking Mike Pratt says the bank will reduce its exposure to mortgage brokers.(News)(Brief Article)
August 15, 2003... Caption: Westpac head of business and consumer banking Mike Pratt (above) says the bank will reduce its exposure to mortgage brokers. "It is an important channel for us but we need to focus on building our own capabilities," he said. Pratt...

Low rates delay technologies.(News)(Brief Article)
August 15, 2003... THE LOW INTEREST RATE environment is delaying any move by mortgage lenders to deploy new loan origination technologies. In fact new technology is unlikely to be adopted unlit 2005. A new report entitled "Mortgage Technologies: Paving a Path...

Basel II offers more than compliance.(News)
August 15, 2003... IMPLEMENTING THE NEW BASEL Capital Accord (Basel II)--and figuring out just how to do it--is one of the most far-reaching and pressing decisions faced by Australian financial institutions. This is especially challenging when you consider...

Macquarie forecasts another good year.(News)(Brief Article)
August 15, 2003... MACQUARIE BANK MANAGING director and chief executive Officer Allan Moss says the bank's first quarter profit, for the three months ended June 30, 2003, was welt up on the corresponding quarter in 2002. Moss said he expected the first half...

Emphasise value not price.(mortgage products rating)
August 15, 2003... THE RECENT INTRODUCTION OF comparison rate legislation under the UCCC is likely to increase the level of price-based competition in the mortgage market. Consumers will inevitably increase their focussing on relative AAPRs (comparison...

Time to revisit anti-virus budgets.(News)
August 15, 2003... A COMPUTER VIRUS-LIKE INFECTION which tries to steal corporate passwords has targeted computers at about 1200 banks worldwide. Inside the virus' code, experts found a list of Web addresses for many of the largest financial institutions,...

Diebold unveils new ATM.(Automated teller machines )(Brief Article)
August 15, 2003... DIEBOLD HAS UNVEILED A revolutionary new series of automated teller machines (ATMs) that provides financial institutions with a new generation of self-service solutions, services and support necessary to thrive in today's marketplace. The...

Business bankers in demand.(Special report: hot jobs)
August 15, 2003... OVER THE LAST YEAR THE employment landscape in financial services has been relatively fiat, with many employers reducing head-counts to minimum levels either through active or passive means. We have seen further consolidation in the funds...

Consulting central to downsizing.(Special report: hot jobs)(Brief Article)
August 15, 2003... OUTPLACEMENT CONSULTING AND career transition services are a cornerstone for successful corporate downsizing, according to a survey by human resources consultants DBM. Over 1200 senior human resource executives participated in the survey...

Relationship marketing: is it an economic reality?(Examining the customer)
August 15, 2003... OVER THE PAST FEW YEARS there has been many articles and conference topics about "relationship marketing" and just what it means and how we can reach the ultimate summit in marketing--the perfect relationship with "customers for life". But...

CRM must be instilled, not simply installed.(Customer relationship management)
August 15, 2003... THE NOTION OF CUSTOMER relationship management (CRM) may be a misnomer for Australia's financial, services industry. With the democratisation of market information, expanding number of interaction channels and relatively low migration barriers...

Roseman builds future at Macquarie: as uncertainty continues to plague the performance of the Australian sharemarket, infrastructure assets have continued to attract investors as they search for more secure and reliable investment options.(Future Leaders & New Directions Series)
August 15, 2003... Head of infrastructure at Macquarie Bank (Australian and New Zealand) David Roseman is sitting comfortably, as the sector continues to perform weft on the market and the bank's advisory group ranks as the No 1 global investment bank project...

XPOS transforms EFTPOS.(News)(new software application transforms electronic funds transfer point of sale)(Brief Article)
August 15, 2003... THE COMMONWEALTH BANK IS enabling retailers to offer a wide variety of electronic products over-the-counter via XPOS. XPOS revolutionises EFTPOS by allowing merchants to generate additional sales revenue from their EFTPOS terminal. An...

Bankers dismiss ATM claims.(News)(Brief Article)
August 15, 2003... THE AUSTRALIAN BANKERS' Association says recent claims that regional Australia will be disadvantaged by the proposal to eliminate the interchange fee on ATM transactions are contradicted by the evidence. For many years, consumer advocates...

Newcastle Permanent Building Society CEO John Hickey has become the latest victim of a board resistant to change.(behind the screens)(Brief Article)
August 15, 2003... NEWCASTLE PERMANENT BUILDING Society CEO John Hickey has become the latest victim of a board resistant to change. The amiable Hickey recently announced he was leaving the post after less than a year, offering no reason. Screens understands...

The CBA was on the front pages again this month with suggestions that 600 staff from the retail bank would be punted.(Commonwealth Bank of Australia)(Brief Article)
August 15, 2003... THE CBA WAS ON THE FRONT PAGES again this month with suggestions that 600 staff from the retail bank would be punted. This was not part of the current McKinsey & Co review. But we understand McKinsey's human slashers have identified large...

The market is very nervous about talk that one of our majors, either ANZ, NAB or Westpac will end up with control of National Bank of New Zealand.(Australia and New Zealand Banking Group Limited )(Brief Article)
August 15, 2003... THE MARKET IS VERY NERVOUS about talk that one of our majors, either ANZ, NAB or Westpac will end up with control of National Bank of New Zealand. The asking price is big and the fear of overpayment is overhanging the market.

One of our top banks is close to sealing a co-branded deal.(behind the screens)
August 15, 2003... ONE OF OUR TOP BANKS IS CLOSE to sealing a co-branded deal with a major card card issuer.

Local staff of J.P. Morgan Chase & Co are on edge following news Asia Pacific co-head of investment banking Sean Wallace will move to Sydney to head the bank's Australian unit to replace Trevor Loewensohn.(behind the screens)(Brief Article)
August 15, 2003... LOCAL STAFF OF J.P. MORGAN Chase & Co are on edge following news Asia Pacific co-head of investment banking Sean Wallace will move to Sydney to head the bank's Australian unit to replace Trevor Loewensohn. Loewensohn is reportedly taking a...

Illawara Credit Union and Unicom Credit Union have agreed to a merger.(behind the screens)(Brief Article)
August 15, 2003... ILLAWARRA CREDIT UNION AND Unicom Credit Union have agreed to a merger and staff have been told there will be no redundancies.

John Symond's recently released book is a good read and, in typical fashion, he has been wearing his shoe soles thin spruiking the offering, called simply Aussie John.(behind the screens)(Book Review)
August 15, 2003... JOHN SYMOND'S RECENTLY released book is a good read and, in typical fashion, he has been wearing his shoe soles thin spruiking the offering, called simply Aussie John. His detractors may dismiss him as an outrageous self-promoter but ask...

Screens was delighted by the news that RBA Gov Ian Macfarlane would stay on for another three years.(Reserve Bank of Australia)(Brief Article)
August 15, 2003... SCREENS WAS DELIGHTED BY THE news that RBA Gov Ian Macfarlane would stay on for another three years. Does that mean we can mark you down as a definite starter for our annual banking and finance awards next year Ian? (For the uninitiated we have...

David Morgan's desire to keep directing the Westpac ship is good news for the market.(behind the screens)(Brief Article)
August 15, 2003... DAVID MORGAN'S DESIRE TO KEEP directing the Westpac ship is good news for the market. He's done a good job and certainty deserves a new contract from the board.

Mortgage brokers should review practices, law firm.(News)(Brief Article)
August 15, 2003... MORTGAGE BROKERS ARE THE latest targets firmly in ASIC's sights. With rumblings of regulation starting to emerge, Wayne Jenvey from national law firm Dibbs Barker Gosling suggests that mortgage brokers should jump the gun and review their...

Integrated systems major challenge for call centers.(News)
August 15, 2003... THE MAJOR CHALLENGE FACING Australian call centres today is the integration of the technology managing customer interactions across all channels, according to respondents in the 2003 Australian Call Centre Industry Benchmark Study. The...

Accolades draw closer.(insurance industry)(Brief Article)
August 31, 2003... AUSTRALIAN BANKING & FINANCE NEWSMGAZINE'S INAUGURAL 2003 Insurance Industry Accolades have been well supported by the industry. Voting coupons are pouring in ahead of the gala presentation in Sydney on September 16 and voting is now...

Basel II to change competition: BIS.(Brief Article)
August 31, 2003... NEW RULES GOVERNING HOW much banks must set aside for possible loan losses will change competition among lenders, the head of the Bank for International Settlements says. The Basel II accord "will induce changes in banks' business plans...

American Express in home loan push.
August 31, 2003... AMERICAN EXPRESS GENERAL manager John Steward is confident of success as the group prepares to diversify into the fiercely-competitive home lending market in Australia. "While the vast majority of Australian household lending is on...

ABA supports super regulation changes.(Current Account)(Australian Bankers Association)(Brief Article)
August 31, 2003... THE AUSTRALIAN BANKERS' Association is hopeful customers will soon be able to manage their superannuation account balances in the same way they now take for granted the choices they can make in banking products and services. In a...

Bluestone expands its mortgage distribution.(Current Account)(Brief Article)
August 31, 2003... SPECIALIST LENDER BLUESTONE Mortgages has significantly expanded the distribution of its non-conforming residential mortgage products through an agreement signed with Mortgage Choice, Australia's leading mortgage brokers with over 460...

Kent replaces Hosking as head of Axiss.(Current Account)(David Kent replaces Les Hosking)(Brief Article)
August 31, 2003... AXISS AUSTRALIA HAS A NEW head following the departure of Les Hosking. David Kent has been appointed executive general manager of Invest Australia's international operations, responsibile for Axiss as well as Invest Australia's 10...

Home loan growth boosts IMB earnings.(Current Account)(IMB Ltd. profit increasing)(Brief Article)
August 31, 2003... LOAN APPROVALS IN EXCESS OF $1 billion, for the second year in a row, have helped Australia's second Largest building society IMB Ltd achieve a growth of assets under management this year of more than 22% to a total exceeding $3 billion. ...

Lloyds TSB enters energy business.(Current Account)(Lloyds TSB Group PLC)(Brief Article)
August 31, 2003... LLOYDS TSB HAS BECOME THE first UK bank to enter the British energy market. New and existing current account customers will be able to sign up for gas, electricity and telephone services under the bank's ideal brand. According to...

Redsheriff's top 20 banking & finance sites.(Current Account)(Illustration)
August 31, 2003... REDSHERIFF'S TOP 20 BANKING & FINANCE SITES TOP (AUSTRALIAN AND INTERNATIONAL) BUSINESS AND FINANCE CATEGORY FOR JULY 2003 Unique Rank Site ...

ANZ creates superior value: despite an improvement in profitability, the world's banks lost $US350 billion, or 9% of their market capitalisation, in 2002, says a report by Boston Consulting Group.(News)
August 31, 2003... Nevertheless, banks lost less than the overall stock market, and their average return on equity improved to 16.5% compared with 14.3% in 2001, the prior year, the report says. Among nations, Germany and Switzerland were hardest hit. And...

Aussie breaks $10bn loan mark.(News)(Aussie Group of Companies)
August 31, 2003... AUSTRALIA'S LARGEST NON-BANK LENDER, JOHN Symond's Aussie group, has marked a major milestone--breaking through the $10 billion mark in the value of home loans currently provided to more than 130,000 customers in mainland capital cities and...

Mobile banking initiatives.(News)
August 31, 2003... IMAGINE CUSTOMERS BEING able to use a hand held device to pay bills, check account information and purchase shares, linked directly to their bank account. This type of mobile banking has the potential to be a breakthrough in customer...

Fee transparency reaches high note with customers.(News)
August 31, 2003... HOW TO MAINTAIN HIGH LEVELS of client retention is one of the most critical issues facing financial services executives. Latest research by the Forrester Research group shows that firms must focus on initiatives that increase customer...

Bank Qld means business.(News)(Bank of Queensland acquired UFJ Finance Australia)
August 31, 2003... BANK OF QUEENSLAND HAS MOVED to diversify its earnings base by increasing its focus on business banking. It has acquired equipment financing company UFJ Finance Australia, formerly known as Sanwa Australia Finance, also headquartered in...

Finance sector baffled by EFTPOS ruling: banks, building societies and credit unions have attacked the Australian Competition and Consumer Commission's backflip in denying the application to reduce EFTPOS interchange fees to zero.(News)
August 31, 2003... BANKS The Australian Bankers' Association described the draft determination on EFTPOS reform by the ACCC surprising. The application to set the interchange fee to zero by banks, building societies and credit unions modelled to address...

The young take positive steps to secure their financial future.(News)
August 31, 2003... THE COMMONWEALTH BANK SMART SAVING MONEY has revealed that people aged 16-34 years save more each month than any other age group, distinguishing them as a well informed group who are taking positire steps early to prepare for their financial...

Q: can Bendigo Bank maintain its earnings growth, which came in at 21% in the latest year?(the critical question with Rob Hunt, Bendigo Bank)(Brief Article)
August 31, 2003... "There has been no evidence any tapering off in demand the Bendigo style of banking. "The net increase in new customers in the last year was 13% and demand for community bank and Bendigo bank branches continues to be strong across...

Churning restricts Wide Bay.(News)(Wide Bay Capricorn Building Society)
August 31, 2003... WIDE BAY CAPRICORN BUILDING Society lifted profit 4.23% to $9.1 million last financial year in a period which was restricted by high levels of churning and payouts. During the year Wide Bay completed an early wind up of an R&D...

Sun shines on old loan brokers.(News)(Brief Article)
August 31, 2003... QUEENSLAND HAS BEEN THE shining state in the number of home roans generated by mortgage brokers. Latest data from MISC Australia (Market Intelligence Strategy Centre) shows growth of 5% in the March quarter on the previous quarter and...

Insuring against decision failure: the insurance industry in Australia has been turbelent in recent times--from major natural disasters to poor governance to appraisal value write downs.(News)(Activity Based Information System)(Brief Article)
August 31, 2003... This turbulence and continued uncertainty has created focus on how the management of insurance companies respond. Management needs to address risk, investment management, sales and operations management in today's environment, with CEO's and...

Insurers urged to educate public.(News)(Brief Article)
August 31, 2003... THE PRESIDENT OF THE Insurance Council of Australia and CEO of Promina Mike Wilkins says the insurance industry needs to spend more time educating the community about how insurance works so the financial pressures on companies were better...

Mobile management must be synchronised.(Special Feature--The Mobile Executive.)
August 31, 2003... IT LURKS ALONG HIGHWAYS AND airways. It's found in lobbies an taxis, it's difficult to track, har to control--and impossible to Live without. It is, of course, the "mobile beast": the indispensable laptop or handheld device used by sales...

Implementing a strategy to maximise revenue.(Special Feature--The Mobile Executive)
August 31, 2003... BUSINESSES, IRRESPECTIVE OF their size, share common goals. This includes maximising revenues, controlling and reducing costs, improving productivity, ensuring employee satisfaction, being customer driven and increasing competitiveness. ...

Changing Demographic Drive Investment Market.(Special Feature--The Mobile Executive)
August 31, 2003... AUSTRALIA'S INVESTMENT managers cite conditions in global stock markets, the move towards alternative investment products and the globalisation of the fund management business as the key market drivers that will affect their business over the...

Payments standards increase.(News)
August 31, 2003... WHILE THE CASE FOR USING extensible markup language [XML] standards has been made relative to a broad range of industries and applications, the financial services industry is now beginning to rockiness the vital role XML will play in...

The right mix of reward and recognition.(examining the customer with Carlson Marketing)
August 31, 2003... REWARD OR RECOGNITION? WHICH is the great motivator for customers and other key stakeholders? This article looks at the difference between "rewards" and "recognition" and the roles they play in building strong relationships between...

IAG, QBE record spectacular profit hikes.(News)
August 31, 2003... THE GENERAL INSURANCE SECTOR IS flourising with IAG and QBE recording spectacular earnings increases. IAG, Australia and New Zealand's biggest property and casualty insurer, returned to an annual profit thanks to new car and home insurance...

Beyond the Basel baseline.(News)
August 31, 2003... BANKS THAT OPT FOR AN integrated information led response to the provisions of the Basel Capital. Accord will not only meet the criteria it sets out by way of risk control, and reporting, they will also fully embrace the incentive side of the...

To say Allan Fels was not liked by bankers would be a gross understatement.(behind the screens)(Brief Article)
August 31, 2003... TO SAY ALLAN FELS WAS NOT liked by bankers would be a gross understatement. His successor, Graeme Samuel, is following the same course after his decision to deny reductions in interchange fees. Samuel is a former banker himself and Screens...

Nab boss Frank Cicutto is reportedly set to lift the lid on a five year growth plan, which is all very admirable.(behind the screens)(Brief Article)
August 31, 2003... NAB BOSS FRANK CICUTTO IS reportedly set to lift the lid on a five year growth plan, which is all very admirable. But Screens understands the former Bankstown first grade cricketer will be pursuing this new strategy minus one of his most senior...

The former head of e-commerce at the CBA Stephen Coulter has just launched an SMS and email based stock alerts service in his role as CEO of an outfit called Whilemobile.(behind the screens)(Brief Article)
August 31, 2003... THE FORMER HEAD OF E-COMmerce at the CBA Stephen Coulter has just launched an SMS and email based stock alerts service in his role as CEO of an outfit called Whilemobile. The company, part of the Pinpoint Group, provides seamless integration of...

Bendigo Bank has been named Victoria's Good Corporate Citizen 2003 in the annual Victoria Day awards.(behind the screens)(Brief Article)
August 31, 2003... BENDIGO BANK HAS BEEN NAMED Victoria's Good Corporate Citizen 2003 in the annual Victoria Day awards. The award was presented to bank chairman Richard Guy OAM by Victorian Lieutenant Governor Lady Southy. Trustees of the Victoria Day Council...

The US Banking Industry claims to have come through the recent blackout with flying colours.(behind the screens)(Brief Article)
August 31, 2003... THE US BANKING INDUSTRY CLAIMS to have come through the recent blackout with flying colours. The American Bankers Association said: "The fact is, every bank in the country has--and is required to have--a disaster recovery plan and multiple...

MacQuarie bank's new head of funds management Ben Bruck is highly regarded by CEO Allan Moss and chairman David Clarke and they will be looking for improved results from the division in the next year.(behind the screens)(Brief Article)
August 31, 2003... MACQUARIE BANK'S NEW HEAD of funds management Ben Bruck is highly regarded by CEO Allan Moss and chairman David Clarke and they will be looking for improved results from the division in the next year. Bruck says he does not intend to alter the...

Banks to expand debit cards and boost technology spend.(News)
August 31, 2003... BANKS PLAN TO EXPAND DEBIT card product lines and invest in technology to grow their card operations, according to the American Bankers Association's (ABA) 2003 Bank Card Survey Report. The survey examines growth strategies for card issuers...

Performance pricing recognised.(News)(Customcall Pty Ltd. gets Best Business of the Year award)(Brief Article)
August 31, 2003... AT THE RECENT MY BUSINESS awards Australia's leading direct sales company, Customcall Pty Ltd, was honoured with both the "Iomega" Best Medium Business and the '3' 2003 Best Business of the Year award. Accepting the award, Customcall's CEO...