Australian Banking & Finance articles from July 2005

Australian Banking & Finance archives from July 2005

Liddy: "dismantle the 4 pillars now".(Bank of Queensland's David Liddy speaks on banking sector management)
July 15, 2005... Speaking exclusively at our first Cisco Lecture Series, Bank of Queensland CEO David Liddy, spoke out on the four pillars policy as a "disaster for Australia's big four banks and that it is also, potentially, a major impediment on the second...

Global players target Australia's wealth management industry: overseas financial institutions are looking to expand their operations in Australia's wealth management market, according to a recent report in the Australian Financial Review, which reveals Citibank, UBS and HSBC all plan to increase their market share in this segment of the industry.(NEWS)
July 15, 2005... Citibank established its Citigold brand in Australia this year, as part of a campaign to expand the wealth management business in Australia, which is below its market share in several Asian countries. Suvrat Saigal, Director, Citigold in...

David Morgan's masterclass!(NEWS)(Brief Article)
July 15, 2005... Some say the success of a leader is the quality of his top people and what they do with their careers later on. Well Morgan's elite of 2000-01 have gone on to great heights. Look at this role call... CLASS OF 2001--WHERE ARE THEY NOW? ...

Hall of fame.(Letter to the Editor)
July 15, 2005... Dear Peter, I have been overseas for several weeks and been remiss not expressing to you and your organisation my sincere appreciation for the granting of the award of the induction into the Australian Banking & Finance Hail of Fame on 17th May...

Excellent speech.(Letter to the Editor)
July 15, 2005... Last night's David Liddy lecture was one of the best such speeches that I have attended in many years. It was well constructed, challenged the status quo, provided a workable future scenario, and addressed the issues. What an excellent evening....

Australia not moving fast enough on ATM payments system reform.(Brief Article)
July 15, 2005... THE MANAGING DIRECTOR OF Customers Limited (ASX:CUS), Greg Baker, has called for progress on reform to Australia's ATM payments system via adjustment to fee regimes. Baker was speaking this week in Hong Kong at an ATM Industry Association...

Keeping the lifeblood flowing: information is the lifeblood of every financial services organisation, but all too often data bleeds like an open wound rather than flowing from the heart to the head..(automating operations)
July 15, 2005... This is symptomatic of the fact that financial businesses have spent years investing in technology to automate operational functions like accounting, risk management, customer relationship management and application processes. While these...

AMP names new chairman.(Peter Mason)(Brief Article)
July 15, 2005... FINANCIAL SERVICES COMPANY AMP has announced that experienced investment banker Peter Mason will take over as chairman when incumbent Peter Willcox ends his tenure next September. Mason joined the AMP board in October 2003 to help the...

The changing role of the CIO: running the computers is no longer enough. Today's CIOs are taking their rightful places in the boardroom as business leaders who drive innovation and change.(chief information officer )
July 15, 2005... The term chief information officer (CIO) has been in use for well over 20 years. For all of that time enterprise technology leaders have been awkwardly keeping one foot in the data centre and the other in the executive suite. But recently we...

Australia's funds management markets.
July 15, 2005... Marriage of banking and wealth management remains a work in progress With Australia's funds management industry worth more than A$700 billion, it's no surprise the major commercial banks have made significant efforts in and acquisitions of...

CBA finally inks deal with 452 Capital.(Commonwealth Bank of Australia)(Brief Article)
July 15, 2005... COMMONWEALTH BANK HAS taken a 30 percent stake in fund management company 452 Capital with the two parties overcoming the glitch that threatened to derail the deal back in March. The purchase of the stake cements the relationship between CBA's...

Race around the world for property assets: for investors, the race is on to find the best property investment opportunities the world has to offer, according to the annual Macquarie Property Market Outlook (Outlook) released recently.(NEWS)
July 15, 2005... Macquarie Property Research has shown for the first time that during all stages of the property cycle, diversifying by adding international property to an Australian property investment portfolio can significantly increase returns and decrease...

Mortgage Choice joins forces with Herron Todd White: Mortgage Choice has worked closely with Australia's largest independent property advisory group, Herron Todd White on a deal that sees the company's participating NSW loan consultants now supplying customers with two versions of a new 'Property Protection Pack'.
July 15, 2005... The packs, one for investors and one for owner occupiers, are aimed at encouraging and providing benefit for consumers to invest in, renovate and sell New South Wales residential property, by helping them avoid the hidden dangers. The packs are...

Aussie Group--pioneers in lending: since its establishment in February 1992, Aussie has grown to become Australia's leading non-bank lender, with operations spanning all mainland capital cities and major regional centres.(Aussie Group of Cos.)
July 15, 2005... Founder and managing director of the Aussie Group, John Symond, continues to be the driving force behind the group, which now includes a national mortgage broking service, which includes Aussie's own brand of mortgages (Aussie Home Loans),...

Ensuring customers get the right loan.(services of Choice Home Loans)(Brief Article)
July 15, 2005... CHOICE HOME LOANS IS A national innovator in producing results and creating solutions for homebuyers around Australia. Their expert consultants provide mortgage options to ensure the customer has the right loan. They assess a customer's...

The Mortgage Bureau--leading the way.(Brief Article)
July 15, 2005... THE MORTGAGE BUREAU (TMB) WAS established in 1989. It commenced as the management company for the Great Lakes Co-operative Housing Society on the mid-North coast of NSW and is now one of Australia's oldest regional mortgage origination...

Tailoring the right loan.(Northern City Finance services)(Brief Article)
July 15, 2005... IN 1988 NORTHERN CITY FINANCE was established by Wayne Milner, initially offering plant and equipment finance, but soon moved into residential and commercial finance. Today the company has a network of 40 licensed offices on the eastern...

Fighting identity theft: the role of the branch: despite the multitude of banking channels available today, the branch remains the most vital connection between a financial institution and its customers..(online banking security)
July 15, 2005... With cheque fraud and identity-theft ever present, the branch is more important than ever in building and protecting a bank's brand and in educating customers on security risks. On the front-line Even with the widespread use of...

Protect your possessions.(online banking security services)(Brief Article)
July 15, 2005... SECURE SENTINEL IS AUSTRALASIA'S LEADING PROTECTION SERVICE FOR financial cards, mobile phones, documents and personal valuables. Secure Sentinel has operated for over 20 years, providing a round-the-clock service to members. More than 238,000...

Credit unions and building societies oppose trademarking of "community banking": credit unions and building societies are fighting moves by Bendigo Bank to trademark the phrase "community banking".(SPECIAL FEATURE: CREDIT UNIONS)
July 15, 2005... On behalf of credit unions and building societies, the Credit Union Services Corporation (Australia) Limited (CUSCAL) and the Australian Association of Permanent Building Societies (AAPBS) have now filed a Notice of Opposition with IP...

RBA dead wrong on Visa debit: reforms proposed by the Reserve Bank to the Visa Debit payment card will have the perverse effect of flooding more credit cards into the market.(Reserve Bank of Australia)(Brief Article)
July 15, 2005... CUSCAL has warned the Reserve Bank that its reform proposals will actually worsen payments system efficiency. "The RBA is supposed to be about improving payments system efficiency but its plans for Visa Debit will have the opposite...

Environmentally friendly.(mecu's financial services)
July 15, 2005... mecu IS A FINANCIAL SERVICES organisation with a difference. They provide a complete range of personal banking, insurance and financial planning services. They offer a different way to bank that reflects ones economic, social and environmental...

A history of success.(Community First Credit Union of Australia)
July 15, 2005... COMMUNITY FIRST IS THE NINETH largest credit union in New South Wales and the 23rd largest in Australia based on total assets with over 55,000 members, six financial service stores and over $560 million in funds under management. Community...

Progress SonicMQ makes online banking easy: Transcomm Credit Union has enjoyed a fast, easy and problem-free transition to Internet banking, thanks to the SonicMQ enterprise messaging solution from Progress Software.
July 15, 2005... As a small to medium-sized credit union with around 5,000 members, Transcomm needed to provide its customers with online banking capabilities in order to remain competitive, despite lacking the financial and IT resources of some larger...

Australian RMBS receive global support: while debate surrounding the future stability of the housing market shows no signs of abating, the Australian market for residential mortgage backed securities (RMBS) is likely to remain strong even in a softening market.(Brief Article)
July 15, 2005... Genworth Financial, Australia's leading Lenders Mortgage Insurer, outlines the reasons why Australia's securitisation market remains one of the world's strongest. Demand for paper is prevalent from both global and domestic markets due to a...

A "one car year".(BEHIND THE SCREENS)(employee bonuses)(Brief Article)
July 15, 2005... An insider at 1 Martin Place revealed what sort of world the Moss Boys really live in shortly after the recent "envelope day" when they all got to know exactly how big their bonus would be for the year. They even speak a different language:...

Relative distance.(BEHIND THE SCREENS)(Brief Article)
July 15, 2005... Overheard at a recent gathering of financial types in Melbourne: "This is a great place to be in the banking industry, but its just a bit too far from Sydney. Or is Sydney too far from Melbourne. I can never remember, especially at this time on...

Don't relax yet.(Commonwealth Bank of Australia appoints Ralph Norris)(Brief Article)
July 15, 2005... CBA staff are wondering exactly what's in store now that Ralph Norris has been confirmed as David Murray's successor. Many of them, of course, have been expecting either Gall Kelly or John Mulcahy and a better-the-devil-you-know sort of...

Nowhere to hide?(David Morgan to lead Australian Bankers Association)(Brief Article)
July 15, 2005... We can expect a lot of four-pillars noise from the ABA this coming few months now that David Morgan's taken the helm. The good doctor has been beating the merger drum for some years recently. However, he admitted that some "nips and tucks" were...

Gone phishing ... again.(frauds against banks)(Brief Article)
July 15, 2005... Received in the last month: various dodgy emails including several from the Commonworth Bank of Australia and one from the Naturel Australia Bank. This last sounded interesting with its connotations of young staffers disporting themselves in...

Questionable lending practices.(incentives to encourage staff in banks)
July 15, 2005... One of the dilemmas bank management faces is the use of incentives to encourage staff to develop business with an appropriate risk/reward profile. The incentive has to be one that ensures appropriate behaviour by the employee. Poorly structured...

QBE and CommInsure take the honours: QBE has taken out the big awards, being voted as Best General Insurance Company, and chief executive, Frank O'Halloran, crowned as Best Insurance Executive for 2005. CommInsure has also dominated Australian Banking & Finance newsmagazine's third annual Insurance Awards, being named Best Life Insurance Company among others.(QBE Insurance Group Ltd.)
July 31, 2005... Mike Hawker, who was voted best Australian Insurance executive for two years running, has made way as Frank O'Halloran, chief executive of QBE was voted as best executive for 2005. CommInsure was judged Best Life Insurer and its Home &...

The top insurer--O'Halloran: Frank O'Halloran commenced his career as a chartered accountant in 1963, over 13 years working with Coopers & Lybrand (now PwC). He joined QBE Insurance Group Limited in June 1976 as Group Financial Controller.(QBE Insurance Group Ltd.)(Brief Article)
July 31, 2005... O'Halloran was appointed to the Board in 1983 as Director of Finance (chief financial officer). In 1994 he assumed the role of Director of Operations (chief operating officer), assuming the direct responsibility of all operating divisions...

QBE takes out best insurer: QBE Insurance is one of Australia's largest general insurance and reinsurance Groups, employing more than 7,000 staff in 38 countries and rated as one of the top 25 insurers and reinsurers worldwide.(QBE Insurance Group Ltd)
July 31, 2005... Its growth, nationally and internationally since its small beginnings in 1886 is the story of an institution that has played an important part in Australian commercial history. QBE distributes its insurance products and services through...

A fresh approach: CommInsure is the specialist insurance arm of the Commonwealth Bank of Australia.(Brief Article)
July 31, 2005... CommInsure is an industry leader, offering a fresh approach to protect the lifestyles of Australians through innovation, simplicity, competitive products and responsive service. CBA launched the CommInsure name in 1999 which evolved from...

Full range of products: Munich Reinsurance has been one of the leading reinsurance companies in Australia and New Zealand for the past 50 years. Since commencing writing reinsurance business in Australia in 1955, Munich Re's income from Life and Non Life operations has grown to over $850 million in 2004 in this region.
July 31, 2005... "It is very pleasing to report another very satisfactory year across our entire business activity" said Rhys Withers, managing director of Munich Reinsurance in Australasia. "Both our Life and Non Life operations reported excellent before...

Tailor your policy: CommInsure's Total Care Plan allows the customer to tailor the policy to meet their individual needs.(Brief Article)
July 31, 2005... Total Care Plan provides a variety of options to protect the lifestyle of the customer and their family in the event of the customer's death, total and permanent disablement or if they suffer one of the specified trauma conditions. It can...

Call centre with 'human' touch.(CommInsure Customer Gateway)(Brief Article)
July 31, 2005... COMMINSURE'S AIM IS TO EXCEL in customer service and provide straight forward insurance solutions for advisers and customers--making it easy for people to deal with them from taking out a policy to administration and claims processing. The...

Convenient channel.(AAMI Insurance )(Brief Article)
July 31, 2005... SINCE ITS INCEPTION IN 1999, the objective of AAMI's website was to replicate the service experience that AAMI customers received via its traditional channels, such as face-to-face and over the telephone. In 2005, AAMI's website provides a...

Wesfarmers--never far away.(Wesfarmers Federation Insurance)(Brief Article)
July 31, 2005... FOR OVER 80 YEARS WESFARMERS Federation Insurance (WFI) has focused on providing personalised insurance services to farmers and small business proprietors across the nation. WFI was established in 1919 and since then has maintained a strong...

Knowledge, strength, commitment: CUNA Mutual Group was established in 1969 in Australia and today provides general and life insurance products and services to a wide number of financial institutions, including over 90 percent of Australia's credit unions.
July 31, 2005... Through a strategic partnership with CUNA, financial institutions can benefit by working with a single integrated insurance partner who understands their needs. With the aim to help create financial security, CUNA is committed to building...

Protecting your business and personal wealth.(Aon Corp's services)(Brief Article)
July 31, 2005... AON IS A LEADING PROVIDER OF risk management services, insurance and reinsurance broking, financial planning and employee risks and benefits solutions. Aon professionals meet the diverse and varied needs of their clients through their industry...

Protecting your assets.(Insurance Protecting assets)(Brief Article)
July 31, 2005... COMMINSURE'S GOAL IS TO provide customers with the peace of mind and financial protection. Comminsure offers both a Prime and Economiser home and contents package. Prime Home and Contents Insurance, a combined policy, can protect a...

Active promotion.(Compulsory Third Party insurance)(Brief Article)
July 31, 2005... CTP INSURANCE DOESN'T MEAN much to most people. To the general public, all insurance is the same. However, AAMI knows that is not the case. This was the reason behind AAMI's integrated marketing campaign on CTP personal injury insurance,...

QBE: a pragmatic approach.(Brief Article)
July 31, 2005... QBE IS COMMITTED TO SOUND, practical risk management in order to protect shareholders' and policyholders' interests. The risk management framework implemented by QBE is based on a pragmatic approach. This provides the flexibility and...

DINWeb: an insurance solution.(DINWeb Cuna Mutual Group)(Financial Services Reform Act )(Brief Article)
July 31, 2005... CUNA'S DINWeb solution provides credit unions with a cost effective E-commerce solution for the insurance delivery of general and consumer credit insurance products. DINWeb uses the latest Internet technology to provide an integrated...

Top executives attend awards.(2005 AUSTRALIAN BANKING & FINANCE INSURANCE AWARDS)
July 31, 2005... The 3rd Annual Insurance Awards held by this magazine were an outstanding success. Dockside Darling Harbour was the venue and over 300 insurance executives listened to keynote Justice Neville Owen, applauded all the winners and enjoyed the...

Cash injection needed to reduce online risks: Australia's banks have made huge profits from internet banking but they have not spent enough money to establish a secure online environment for their customers, according to leading IT security law expert Dr Adrian McCuhagh.(Brief Article)
July 31, 2005... McCullagh said the Australian banking sector has concentrated on protecting their own interests while consumers still faced considerable risks. "The Australia banking sector has for sometime now obtained a substantial reward in migrating...

East & Partners Churn Cycle analysis.(Brief Article)
July 31, 2005... THE AUSTRALIAN BANKING MARKETS HAVE NEVER BEEN MORE DYNAMIC with corporate and business customers witnessing renewed efforts from their incumbent transaction bankers alongside intense competitive pitching from rival service providers. This...

Finance Council established.(Finance Industry Council of Australia )(Brief Article)
July 31, 2005... THE AUSTRALIAN FINANCE industry acted recently to formalise continued cooperation on matters that impact on the industry as a whole, with the formation of the Finance Industry Council of Australia (FICA). The new council represents the...

BankWest targets small businesses.(Brief Article)
July 31, 2005... BANKWEST HAS ROLLED OUT A new lending product as part of its bid to win a share of the small business segment in Australia's eastern states. The bank's Business Express division has launched a lending product with a loan rate of 6.60 percent...

Westpac says weight of fund to keep pressure on property yields: funds available for property investment from superannuation will increase from $3.4 billion currently to $5.5 billion by 2014 and to just under $11 billion by 2024, according to the latest Westpac Property topical paper.
July 31, 2005... This, plus the additional funds from other types of property investor, suggests that property investment yields are likely to remain firm over future years. At the least there appears to be little easing in the weight of funds looking for...

Interest in industry superannuation funds growing.
July 31, 2005... AUSTRALIAN EMPLOYEES' awareness of legislative changes affecting their choice of superannuation increased by 48 percentage points to 93 percent, although few were likely to exercise the new option, a survey conducted by leading research company...

Banks look to low does to drive growth.(Home Loan Reports)
July 31, 2005... LOW DOCUMENTATION "LOW DOC" loans are on the rise and banks are jumping on the bandwagon and increasing their exposure to this form of home loan. Primarily targeted at the self employed, low doc loans have been available in Australia in...

Compliance in financial services--competitive advantage or just a regulatory concern? A PricewaterhouseCoopers study has found that financial services firms believe a compliance culture can deliver a competitive edge through reduced legal liabilities, an enhanced reputation, better credit ratings and improved customer retention rates.
July 31, 2005... This study shows that progress has been made over the past three years in developing governance, risk and compliance structures. PricewaterhouseCoopers' Global Compliance Survey, conducted amongst senior executives and compliance officers in...

Banktech 05.(Australian Financial Review Banktech Summit )(Brief Article)
July 31, 2005... The Australian Financial Review's 6th Annual Banking Technology Summit, 151h & 16th September 2005, Dockside, Cockie Bay Wharf, Sydney The AFR Banktech Summit has become established as a premier event in the Australian banking and...

US fund manager, Highland, brings new loan asset class to Australia.
July 31, 2005... GLOBAL FUND MANAGER, Highland Capital Management, L.P. ("Highland") is to bring a new asset class to Australian investors in the form of senior secured loans and collateralised loan obligations. In the US, the senior secured loans asset...

New general insurance Code of Practice will deliver better service: a new Code of Practice launched recently will mean general insurers will meet higher, measurable performance standards for dealing with customers, including settling claims in specific time periods and providing clearer information about policies.
July 31, 2005... In a world first, the Code will not only provide protection for consumers, but for business policyholders as well. Developed by the Insurance Council of Australia (ICA) in close consultation with the insurance industry, and consumer and...

Credit card fraud experts to meet Sydney.(Brief Article)
July 31, 2005... REGULATORS, CARDS EXECUTIVES and retailers meet on 17-18 August at the Sydney Convention Centre to digest the latest fraud and risk issues currently plaguing the industry in the United States: Industry insider, John Geurts, executive...

The Australian hedge fund industry (1).
July 31, 2005... Hedge funds have attracted growing investor interest in Australia, particularly in recent years when the returns from traditional equity investments have, with the exception of the past year, been relatively poor. There is no standard...

Pricing and products.(Banking industry's earnings)(Brief Article)
July 31, 2005... TWO AREAS THAT ARE ALWAYS OF interest to bankers are optimal pricing for products, and opportunities for development in new product areas. Let's deal with optimal pricing first. Most banks are already through a number of rounds of cost...

Loose lips.(Brisbane-based banker )(Brief Article)
July 31, 2005... Who was the Brisbane-based banker who made a fool of himself on an inbound flight from Hong Kong last month? After roundly disparaging English bankers over a few glasses of champagne in the first class cabin, we heard that he was "less than...

Offshore.(Australia and New Zealand Banking Group Ltd planning to Offshore customer-service operations to cheaper pastures )(Brief Article)
July 31, 2005... ANZ has announced that it's looking to "offshore" its customer-service operations to cheaper pastures such as the Philippines or India. Good idea. Much reduced overheads come complete with English-speaking staff who, educated not only in the...

Doctor's orders.( Bankers in Sydney )(Brief Article)
July 31, 2005... The good doctor has been at it again across the Straits we see. Bankers in Sydney are variously "outraged" or "disgusted" by New Zealand finance minister Michael Cullen's much vaunted rewrite of the tax laws that includes a retrospective tax...

Gobbledy gook!(Brief Article)
July 31, 2005... And on that note, we're not doing so well in China, Behind the Screens hears. Australians like to state their purpose directly, while the Brits, as is their way, talk around the point ad absurdum. Hence the following answer to a question about...

Farewell to Murray.(David Murray resigns from CBA lecturing)(Brief Article)
July 31, 2005... David Murray gave his last lecture for this magazine on July 27th n Sydney He has been a great supporter as chief of the CBA lecturing and presenting at our symposiums and was three times winner of our Best Banker of the Year Award and a member...

ANZ gets new head of debt capital markets.(Julie Hunter appointed in Australia and New Zealand Banking Group Ltd)(Brief Article)
July 31, 2005... ANZ HAS APPOINTED FORMER WESTPAC HEAD OF Structured Securities, Julie Hunter, to lead the bank's Debt Capital Markets business. Hunter, who takes up the position on August 19, will drive ANZ's debt capital markets capabilities in...