Australian Banking & Finance articles from February 2003

Australian Banking & Finance archives from February 2003

World finance conference to attract broad audience.(World Financial Services Conference (Sydney, November 12 2003))(Brief Article)
February 17, 2003... INTEREST IS BUILDING IN ONE of the most important financial services conferences ever to be staged in Australia in November. Keynote speakers are likely to include the chairman of the US Federal Reserve Dr Alan Greenspan, Prime Minister...

Slowdown in housing won't trigger defaults.
February 17, 2003... FEARS THAT A DOWNTURN IN THE housing market could trigger a large increase in home mortgage loan defaults are greatly exaggerated based on research by the economics team at National Australia Group. The group studied previous episodes of...

Nominations finalised for annual awards.(Australian Banking & Finance Awards nominations)
February 17, 2003... THE 2003 AUSTRALIAN BANKING & Finance newsmagazine Awards are up and running with an impressive list of nominations in the 12 voting categories. The past year has produced some striking performances in a difficult market and it's now time...

ANZ's credit card deal with Metropolitan Bank.(Current Account)(Metropolitan Bank and Trust Co MBT.PS. (Philippines))(Brief Article)
February 17, 2003... ANZ BANK PLANS TO SET UP A credit card joint venture with the Philippines' largest bank, Metropolitan Bank and Trust Co MBT.PS. Under the terms of a memorandum of understanding, ANZ was likely to buy a stake for less than $20 million in...

Citibank offers online banking in China.(Current Account)(Brief Article)
February 17, 2003... FINANCIAL TITAN CITIBANK HAS won approval to become the first foreign tender to offer online banking in China to both corporate and individual customers. Citibank is one of several foreign banks, such as HSBC and Standard Chartered Bank,...

Banking world.(Current Account)(bank bus replaces closed branch offices)(Brief Article)
February 17, 2003... Rabobank customers visit the bank's bus service in Raerd, The Netherlands. Raerd, with a population of 650, is serviced twice each week by the bank bus which replaces the bank branch office closed since last summer. Banks in Europe have been...

Heritage, RACQ to strengthen relationship.(Current Account)(Heritage Building Society partners with Royal Automobile Club of Queensland)(Brief Article)
February 17, 2003... THE PARTNERSHIP BETWEEN Oueensland's two largest mutual organisations, the RACQ and Heritage Building Society, is set to grow following the Launch of RACQ Home Loans. The club joined forces with the Toowoomba-based building society in 2001...

Stored value cards to lead growth.(Current Account)(Brief Article)
February 17, 2003... FACING SLOW GROWTH IN THEIR core credit card markets, card issuers and processors are increasingly regarding stored value cards as key products for future growth. However, IDC/Meridien Research has found that strategies based on user...

Adelaide Bank outstrips growth rate of majors.(Current Account)(Brief Article)
February 17, 2003... ADELAIDE BANK LIFTED FIRST half profit 21% after shrugging off an expected downturn in the housing market as Lending hit record levels. Adelaide Bank also said it would easily meet forecasts for a double digit rise in profits this year,...

On the record.(Current Account)(Rohan Walsh, John Symond, David Murray and Peter Hanlon quoted.)(Brief Article)
February 17, 2003... "It's pretty disappointing that we and the company are stilt being surprised by the operating performance." ROHAN WALSH, HEAD OF EQUITIES AT FUND MANAGER INVESCO AUSTRALIA, AFTER AMP REVEALED IT EXPECTED TO LOSE $900 MILLION FOR 2002. ...

We're No 1 in attracting venture capital interest: Australia attracted the greatest venture capital investment in the Asia Pacific in 2002.(News)
February 17, 2003... A total of US$1.9 billion in venture capital investments was disbursed into Asia Pacific companies in 2002, according to data gathered by Thomson Venture Economics. Australia pulled in US$450.4 million, or 24% of total investments. It...

Card spend doubles Amex profit.(News)(Brief Article)
February 17, 2003... AMERICAN EXPRESS MORE THAN doubled fourth-quarter profit on higher card spending and growth in new customers, but the financial services group remained cautious about the economy. New York-based American Express benefited as people charged...

Foreign banks show strong asset growth.(News)(in Australia)
February 17, 2003... THOUGH AUSTRALIA'S FOREIGN banks have not historically focused on significantly growing lending assets, their balance sheets continued to grow solidly in the past few years. According to Standard & Poor's, total assets have risen 38% to...

Investment bankers get ready to ride out the storm.(News)
February 17, 2003... LONDON'S BANKERS ARE BRACING for a grim 2003 marked by continued market turbulence and further job cuts, but some are sheltering from the storm by taking time out in the hope that life will be easier when they return. The 21st century has...

Cost containment the top business driver: what will be top of mind for investment management executives in 2003?(News)
February 17, 2003... What will be top of mind for investment management executives in 2003? Cost containment, the shift from strategic to tactical initiatives, and business continuity, according to new research from TowerGroup. These three issues headed...

Structured reverse mortgages should be promptly assessed.(Denovan's law)
February 17, 2003... REVERSE MORTGAGES ARE designed to provide a cash flow for retirees derived by accessing the equity in real estate. That's about where the similarity between products ends. In the US, a "reverse mortgage" refers to a government...

It's the simple things that matter.(examining the customer)(banks' customer relationships)
February 17, 2003... WITH TECHNOLOGY ON A rampant roll, apparently making it easier, less costly and quicker to manage complex customer relationships (albeit at high cost), many organisations have lost sight of the fact that it's often getting the simple things...

Commonwealth bond market essential for financial stability.(News)
February 17, 2003... MAJOR FINANCIAL INSTITUTIONS have argued against a proposal to close down the Australian federal government bond market, claiming it is a key pillar in Australia's debt and investment capital markets. In submissions to a Treasury-supervised...

New Kiwibank claims 100,000 customers.(News)(but loses money)(Brief Article)
February 17, 2003... NEW ZEALAND STATE--OWNED Kiwibank says 100,000 customers have signed up in inside its first year of operation, ahead of forecasts. Kiwibank, owned by state-owned postal services company New Zealand Post, began operation in February 2002 and...

CBA links with Bluestone.(News)(Commonwealth Bank of Australia contract with Bluestone Mortgages )(Brief Article)
February 17, 2003... The Commonwealth Bank has signed an agreement with leading specialist tender Bluestone Mortgages to provide tears to customers who do not fit the bank's usual tending criteria. Under the agreement, customers who do not meet the criteria of...

The world Financial Services Conference: 12th November 2003: Four Seasons Hotel Sydney.(The Most Important Business Event Of 2003)(Calendar)
February 17, 2003... THE WORLD FINANCIAL SERVICES CONFERENCE 12th November 2003 Four Seasons Hotel Sydney "The Challenges of Market Liberalisation and Financial Integration: The world Financial Services Conference will be a dynamic, forward thinking...

Outsourcing gathers pace as flexibility improves: more and more financial services companies are choosing to bring their IT operations back in-house and outsource their total telecommunications needs.(Special report: telecommunications in financial services)
February 17, 2003... According to Dick Dewhurst, NSW state manager for Optus business, big institutions like the banks have strong IT departments that understand the business, but don't see a need or a desire to understand the telco side of the organisation. ...

Optus enters alliance on EFTPOS network services.(Special report: telecommunications in financial services)(Optus Communications Proprietary Ltd. and Transaction Network Services Inc. )(Brief Article)
February 17, 2003... OPTUS HAS ENTERED INTO A five-year strategic alliance with Transaction Network Services (TNS) to develop the next generation of EFTPOS network services. The alliance will see the two companies working together on a joint service offering...

Should the board of APRA remain?(News)(Australian Prudential Regulation Authority board members possibly resigning)
February 17, 2003... MANY IN THE FINANCIAL SERVICES INDUSTRY AND beyond believe the board should go in the wake of evidence emanating from the HIH Royal. Commission. But the Federal. Government is unlikely to dismiss the board, fearful of being seen to have...

Customer defection rates on the increase.(News)(in Canadian and US retail banking)
February 17, 2003... FIGHTING CUSTOMER ATTRITION is a top priority at US and Canadian banks, and for good reason: customer defection rates are up to seven times higher in the US and Canada than in Western Europe. In a new report, "Customer Attrition in Retail...

STP--what's in store for 2003.(STP News)(straight-through processing)
February 17, 2003... HOW COULD WE MOVE INTO 2003 properly without the normal year in review? 2002 brought the industry many challenges and triumphs. It's been an interesting road, to say the least. White some ideas and companies fared better than others in the past...

India moving ahead with STP online: the Securities and Exchange Board of India (SEBI) now has straight through processing enabled, with 50 players in their chain including 20 top brokers transferring data in real time across the medium.(STP News)
February 17, 2003... THE SYSTEM IS FUNCTIONING smoothly after the launch at the beginning of December and six months of preparation beforehand. Three service providers are involved in the program: National Securities Depositories Limited, the National Stock...

Four pillars argument fades.(the Nielsen/netRatings report)(online financial services survey)
February 17, 2003... AS FAR AS THE ONLINE FINANCE category is concerned, we rarely see situations that might be described as historical, but in the last few months a number of records have been set, modest as they be in the greater scheme of things. First, the...

Shares in AMP staged a brief rally early this month after British regulators said they would go easy on life insurers to prevent forced sales of already weak equities.(News)(Brief Article)
February 17, 2003... Shares in AMP staged a brief rally early this month after British regulators said they would go easy on life insurers to prevent forced sales of already weak equities. Britain's finance watchdog said it would consider granting waivers to life...

Bernie Fraser made a name for himself fighting inflation as Governor of the Reserve Bank.(behind the screens)(Brief Article)
February 17, 2003... Bernie Fraser made a name for himself fighting inflation as Governor of the Reserve Bank. Now he's gaining attention in the racing industry. The softly-spoken Fraser last week trained not one, but two winners at a country race meeting,...

Bank analysts at Macquarie Equities have nominated NAB as the best bet performance wise this year.(behind the screens)(National Australia Bank Ltd.)(Brief Article)
February 17, 2003... Bank analysts at Macquarie Equities have nominated NAB as the best bet performance wise this year. They say the bank's ability to grow above system in Australia, to extract costs and return capital will lead the stock to perform relatively well...

Screens hears several credit unions have entered merger discussions in the past month.(behind the screens)(SGE Credit Union and Sydney Credit Union)(Brief Article)
February 17, 2003... Screens hears several, credit unions have entered merger discussions in the past month. One proposed marriage which didn't come off was a merger between SGE Credit Union and Sydney Credit Union, we're reliably informed. Talks apparently broke...

The dramatic slide in AMP's share price has prompted some industry commentators to suggest the group may now be a real takeover target.(behind the screens)(Brief Article)
February 17, 2003... The dramatic slide in AMP's share price has prompted some industry commentators to suggest the group may now be a real takeover target. Well forget that. Screens spoke to one of the biggest insurers in the world last week and he said he, and...

While on NAB, it has hired former banking analyst Graham Maloney as general manager of corporate Finance.(behind the screens)(National Australia Bank Ltd.)(Brief Article)
February 17, 2003... While on NAB, it has hired former banking analyst Graham Maloney as general manager of corporate Finance. He starts his new role on March 17. Maloney has extensive experience in the Australian equities markets, having held the position of...

The CEO of one of our major financial institutions is said to have been floored by the results of a recent staff loyalty survey.(behind the screens)(Brief Article)
February 17, 2003... The CEO of one of our major financial institutions is said to have been floored by the results of a recent staff Loyalty survey. Seems more than 50% of employees were unhappy with their Lot and would rush out the door at the earliest...

Continuing RMBS growth in 2003.(News)(residential mortgage-backed securities)
February 17, 2003... IT HAS BEEN A DIFFICULT PAST few months for bond markets worldwide, with the Australian residential, mortgage-backed securities (RMBS) market being no exception. Over $4 billion or RMBS was issued in the domestic market in October 2002...

Wealth business troubles Murray.
February 28, 2003... CHRIS CUFFE HAY HAVE BEEN feeling the heat this month from the general outrage over his obscene payout from the CBA, but the man who has handed him the cheque, CBA boss David Murray, is under the greatest pressure. Murray has been the...

RBA reforms slow credit card usage: credit card houses are already feeling the pinch from the Reserve Bank of Australia's industry reforms, which came into effect on January 1.
February 28, 2003... Statistics released by the RBA late last year showed a slowing down of credit card usage in December 2002, compared to the growth rate in 2001 and this has continued into the new year. According to MasterCard senior vice president and...

Securities Institute introduces global subject. (Current Account).(Brief Article)
February 28, 2003... IN RESPONSE TO THE CONTINUED integration of the world's financial markets, the Securities Institute of Australia has developed a groundbreaking new subject called Global Markets. According to the chief executive of the Securities Institute...

NAB executive loss won't hurt strategy. (Current Account).(NATIONAL Australia Bank )(Brief Article)
February 28, 2003... THE LOSS OF ONE OF NATIONAL Australia Bank Ltd's top European directors was disappointing but would not have a major negative impact on the bank's British strategy, analysts said. NAB, Australia's largest bank, said Steve Targett had...

Banking world. (Current Account).(Brief Article)
February 28, 2003... Josef Ackermann, chief executive of Deutsche Bank AG, is shown on a video screen as he speaks at their press conference in Frankfurt, Germany. Deutsche Bank AG, Europe's largest bank, had a second consecutive quarterly loss as it wrote down the...

Survey points to business loan boost. (Current Account).(Brief Article)
February 28, 2003... A THIRD OF MAJOR AUSTRALIAN companies expect to borrow more this year, creating a surge in business lending and crucial revenue for the nation's major banks. Brokerage JP Morgan and research firm East & Partners said a survey of...

On the record. (Current Account).
February 28, 2003... "When you find out, tell me." CBA MANAGING DIRECTOR DAVID MURRAY WHEN ASKED HOW ANYONE COULD NEGOTIATE A PAYOUT OF $33 MILLION TO AN INDIVIDUAL AS COLONIAL DID WITH CHRIS CUFFE. "If I had my time over I probably would have integrated...

Local bankers gain foothold in Singapore. (Current Account).
February 28, 2003... BANKING IS AN IMPORTANT PART of a pact with Singapore that provides tariff-free access to S$9.9 billion ($5.65 billion) of trade. The agreement gives Australia a foothold in Asia for its banking, legal and educational service industries,...

Awards attract Samuel. (News).(Brief Article)
February 28, 2003... GRAEME SAMUEL, WIDELY tipped to be the next chairman of the Australian Competition and Consumer Commission, with be a guest speaker at the 2003 Australian Banking & Finance newsmagazine Awards in Sydney on May 20. Samuel will join more...

World finance conference. (News).
February 28, 2003... Australia WILL HOST ONE OF the most important financial services conferences ever in November. Keynote speakers are likely to include the chairman of the US Federal Reserve Dr Alan Greenspan, Prime Minister John Howard and Treasurer Peter...

Banks improve web functions as customer usage increases. (News).
February 28, 2003... AUSTRALIA'S MAJOR AND regional banks have increased the functionality of their web sites in the past year as customer usage of internet banking surges. Leading industry analysts, MISC Australia (Market Intelligence Strategy Centre), claims...

Giropost outlets on the rise. (News).
February 28, 2003... THE AUSTRALIAN PRUDENTIAL Regulation Authority's (APRA) Points of Presence 2002 survey shows two important trends on access to banking services for bank customers. David Bell, chief executive of the Australian Bankers' Association (ABA),...

Outsourcing extends to core bank functions. (News).
February 28, 2003... NEW TECHNOLOGY, COST CUTTING and consolidation helped major banks improve their efficiency ratios by 150 basis points over the decade of the 1990s. But now banks are in a quandary. With the industry already reduced by 50% after a decade of...

Executive suite. (News).(BENDIGO BANK HAS LIFTED profit )
February 28, 2003... BENDIGO BANK HAS LIFTED profit 30% from $19.5 million to $25.4 million in the halt year to December 31. Managing director Rob Hunt explains: "Revenue is growing for a variety of reasons. "We continue to attract new customers at a rapid...

Credit convergence poses many risks. (News).
February 28, 2003... CREDIT MARKET "CONVERGENCE"--the practice of investment banks offering a mix of loan, derivative and bond products under a single organisational umbrella--brings banks a host of benefits, but also compliance and regulatory heartburn. While...

Don't bail out of wireless investments: retail banks will miss a strategic opportunity if they bail out of investments in wireless interface, according to Deloitte consulting. (News).
February 28, 2003... As recently as two years ago, retail banks experienced a flurry of interest in how wireless technologies might be applied to their businesses. Projects were funded and teams appointed amid hopeful promises that a technological revolution...

Cashcard executive joins ATMIA board. (News).(Brief Article)
February 28, 2003... A LEADING EXECUTIVE AT Cashcard Australia has been elected to serve on the international executive board of the global ATM Industry Association (ATMIA). The appointment of Cashcard sales director Ken Gaunt to a senior rote within this...

Westpac teams with US firms to help sell debt. (News).
February 28, 2003... WESTPAC BANKING CORP AND its rivals are joining US securities companies to help their customers sell debt in the world's biggest private bond market, sharing fees with firms usually considered competitors. Melbourne-based packaging company...

RAMS recasts home loan product suite. (News).
February 28, 2003... RAMS HOME LOANS HAS RECAST its home loan products, including attractive interest rate options to apply across the entire portfolio. This new suite of home loan products incorporates totally new options as well as significant improvements to...

People and processes override technology. (Special Feature--CRM 2003).
February 28, 2003... LAST YEAR, NEARLY ALL OF THE major banks announced significant customer initiatives to counter the widespread belief that banks only care about one thing-their shareholders and the bottom line. Branch closures, and investment in indirect...

Westpac strengthens capability. (Special Feature--CRM 2003).(Brief Article)
February 28, 2003... WESTPAC HAS SELECTED Teradata, a division of NCR Corporation, to provide an analytical Customer Relationship Management (CRM) system. The three year contract also includes a 12-month agreement for professional services. "This...

Investment banks turn to CRM for efficiency: battered by changing customer needs, shrinking margins and increasingly sophisticated buying behaviour, top investment banks are turning to customer relationship management (CRM) to capture efficiencies, increase share, and enhance their position and relevance in an increasingly competitive market environment. (Special Feature--CRM 2003).
February 28, 2003... A new benchmarking study by management consulting firm Booz Allen Hamilton reveals how institutional sales organisations are embracing relationship management--and the obstacles they face. Booz Allen conducted over 100 interviews in the US...

Staffware signs deal with AMP. (Special Feature--CRM 2003).(Brief Article)
February 28, 2003... STAFFWARE AUSTRALIA HAS secured the customer services division of AMP Financial Services as a client. AMP has selected Staffware's Business Process Management (BPH) solution for use in its operations in Australia. Staffware's solution...

Transforming branches into sales depots. (Special Feature--CRM 2003).
February 28, 2003... RETAIL BANKS WORLDWIDE ARE facing the problem of how to transform their branches from simple transaction service centres into profitable sales centres. Despite all the multi-channel hype, the branch continues to remain an important channel...

Automated marketing wins popularity: CRM has evolved from a standalone software project to a strategic management tool accountable at board level. (Special Feature--CRM 2003).
February 28, 2003... The shift has been influenced by the current economic climate and the need to deliver ROI sooner, rather than later. The next wave of CRM is a phased approach whereby each phase is focused on a specific CRM objective and is designed to...

Viewpoint: three respected industry figures have their say. (Special Feature--CRM 2003).
February 28, 2003... Q: How are financial services companies progressing with their CRM initiatives? Mike Cawsey, managing director Staffware Australia and New Zealand "In order to capitalise on new and existing relationships with customers, the financial...

Integration of all channels an essential base: financial services companies are under pressure from all sides. (Special Feature--CRM 2003).
February 28, 2003... Globalisation and increased competition, together with advancing technology and regulatory requirements, are causing unprecedented change in the financial sector. Retail banks, in particular, are faced with multiple challenges from...

Behind the screens. (News).(spectre of government intervention looms over banking industry)
February 28, 2003... DAVID MURRAY HAS BEEN THE banking industry's most outspoken voice against any attempt by politicians to re-regulate the industry. But if there is not an end to the obscene revels of payouts to people like Chris Cuffe (a nice bloke apparently...

Credit derivatives growing. (News).
February 28, 2003... TRENDS FROM OVERSEAS indicate that volumes and liquidity in credit derivatives have grown at a fast pace that has pleased the markets' most dedicated supporters. It is argued that credit derivatives are revolutionising the corporate bond...