Australian Banking & Finance articles from March 2006

Australian Banking & Finance archives from March 2006

CIOs rate security No. 1 tech challenge: "You can see the fear in their eyes": cash is still king and a "smart card" society where coins and notes don't exist remains a futuristic dream.
March 2, 2006... That's the verdict from some of the banking industry's top technological thinkers who spoke Australian Banking & Finance magazine's CIO Outlook Luncheon in Sydney. John Loebenstein, CIO at St George Bank, said experiments with smart card...

Out with the old, in with the new: factoring no longer the way to manage cash flow and access capital: while inventory financing is in its infancy in Australia, it is already staking its claim as a better alternative to factoring, giving Australian businesses millions in working capital without the red tape, says Provident Inventory Finance.(NEWS)
March 2, 2006... A member of the Provident Capital Group, Provident Inventory Finance is a specialised lender established to provide loans to Australian SMEs to help their acquisition of inventory. "As companies grow they often experience cashflow shortages...

Creating profitable and rewarding relationships: leveraging in business analytics to build customer loyalty and drive revenue growth: organisations within the financial services sector in Australia face a continuous challenge of maintaining competitive advantage in an increasingly competitive market.(NEWS)
March 2, 2006... WITH GREATER PRESSURE THAN ever to increase share of wallet, reduce customer churn and build new revenue sources, banks and insurance firms are constantly seeking ways to differentiate their product and service offerings, increase customer...

QBE announces record 2005 profit and increased dividend.(NEWS)
March 2, 2006... THE DIRECTORS OF QBE Insurance Group Limited announced that net profit after tax for the 2005 financial year increased by 27 percent to $1,091 million. Profit before tax was up 37 percent to $1,523 million. Diluted earnings per share increased...

NAB logo gets makeover.(NATIONAL AUSTRALIA BANK)(Brief article)
March 2, 2006... NATIONAL AUSTRALIA BANK HAS TAKEN THE WRAPS off its new logo. The bank said the new logo, which has a modernised red star on a black background with lower case nab instead of National, was symbolic of its attempts to support the needs and...

Letters to the editor.(Letter to the editor)
March 2, 2006... Dear Mr Charlton, As the founder and head of Maxim Executive Search I was a regular subscriber to ABF. I was one of the early subscribers when it was "Sydney Banking", and enjoyed the magazine for more than 20 years before selling the...

Suncorp declares underlying profit growth of 7.2%: diversified financial services group Suncorp today reported a 7.2 percent increase in underlying profit * to $491 million for the six months to December 2005.(NEWS)
March 2, 2006... The group also declared an interim dividend of 47 cents per share, fully franked. This is up 12 percent on the dividend for the first half of 2005. Highlights of the result include: * Net profit growth of 2.9 percent to $454 million....

We are the Scheme! Resistance is futile! Compliance to standard practices within business is now here to stay: from Basel II to Sarbanes Oxley, we are seeing more and more accountability of the way in which we conduct our affairs as good corporate citizens.(NEWS)
March 2, 2006... The many organisations around the world in which we trust to process our credit card data everyday have also not escaped this new paradigm. During 2005 there was the largest increase ever in reported credit card data breaches. The infamous...

Equipment finance: time for banks to bring it back into the mainstream?(NEWS)
March 2, 2006... THE BIGGEST ISSUE FACING SMEs and middle market companies is sourcing the working capital to fund and grow their businesses. Given this is the "sweet spot" in the business lending market right now, banks have focussed their attention on...

Rockefeller-style money managers poach rich Wall Street clients: sitting on a personal fortune of say $100 million? Then you need the service of "family offices".(INTERNATIONAL)
March 2, 2006... BENEATH A PINE-FRINGED PARK in Gig Harbor, Washington, on the banks of Puget Sound, George Russell is hunting for mega-millionaires. Russell, 73, runs Threshold Group, an investment boutique catering to some of the most-exclusive--and...

Big audience greets the top CIOs.(CIO OUTLOOK LUNCHEON--PICTORIAL)
March 2, 2006... Past winners of the Top CIO award in Australian Banking & Finance magazine's Annual Awards were keynotes at the CIO Outlook lunch. Michelle Tredenick, John Loebenstein and Nigel Smyth entertained the large audience at Sydney's Hilton Hotel on...

CRM Strategies for 2006: it's who you know that counts.(SPECIAL FEATURE: CRM STRATEGIES 2006)
March 2, 2006... ONE OF THE GREAT LEARNINGS from the failed CRM technology investments of the early 2000's has been that not all online communication methods are created equal. While flagship achievements such as BPay enjoyed much success by realising some 15...

IT's the customer, stupid! Banks finally put their money where their marketing mantra is.(SPECIAL FEATURE: CRM STRATEGIES 2006)
March 2, 2006... After almost a decade of mostly failed attempts at implementing customer management solutions, the big banks are finally getting it right--but there are still lessons to learn, a comprehensive analysis has found. Here, Fujitsu Director,...

The changing CRM market.(SPECIAL FEATURE: CRM STRATEGIES 2006)
March 2, 2006... KEEPING YOUR CUSTOMERS INTERESTED takes more than well-designed products and competitive pricing. Intimate customer knowledge coupled with communicating at the right time are key to succeeding in a changing market. Globally, the Banking...

Are you interacting with your customers the right way? Australian banks are in a tight competitive situation. The only way to grow in the mature Australian market is to lure customers from each other and, given the major banks are offering similar products and interest rates, it is a struggle to find that differentiator which will not only win new business but help you keep it.(SPECIAL FEATURE: CRM STRATEGIES 2006)
March 2, 2006... The banking and finance industry is witnessing an all time low in customer loyalty levels. While it's easy to blame this on the highly competitive environment and the low cost of switching, it's not the only reason organisations are failing to...

Risk management--new advantages? ... not without enterprise change: the Australian banking and finance landscape has seen a considerable focus on risk management programs in recent years. The introduction of these Enterprise Risk programs requires major change management considerations to ensure their success.(SPECIAL FEATURE: CRM STRATEGIES 2006)(Excerpt)
March 2, 2006... "ENTERPRISE RISK" INITIATIVES are also big preservers of profits--if they result in enterprise efficiencies or productivity enhancements across people, systems and processes, and reduced exposure to the multitude of risks--as many are intended....

The customer's dilemma.(NEWS)
March 2, 2006... OVERSEAS EXPERIENCES OF bank customers regarding the relationship with their bank seem to mirror fairly closely those in Australia. Traditionally the relationship has been somewhat curious. People depend upon banks for very basic and...

Dangerous to your wealth.(regulation of Consumer Credit Review body of Victoria for credit cards )(Brief article)
March 2, 2006... We always suspected that Victoria was something of a Nanny State but its latest plans to regulate credit cards as if they were as dangerous as cigarettes may be going too far. If the state's Consumer Credit Review body has its way, all card...

Commensurate with achievement?(BankWest sees record growth this year)(Brief article)
March 2, 2006... BankWest is still determined to become the top dog, we see (Behind the Screens passim). Increasingly shrill announcements from Perth, backed up by somewhat turgid press releases from parent HBOS in London, show that it's making some progress....

Where there's smoke there's fire.(BEHIND THE SCREENS)(Brief article)
March 2, 2006... More lending woes for the banks are on the horizon as the Top 500 have, according to the gurus at East & Partners, "lost their appetite for debt". Actually, they haven't, they've just discovered that they can borrow more cheaply in the offshore...

Carded.(credit card success of Westpac and Commonwealth Bank of Australia)(Brief article)
March 2, 2006... So much for sneering. There was a time when the big four roundly condemned Sir Richard Branson's Virgin credit card for being little more than a gimmick. Times change. As is well known, Westpac managed to move up to the number two slot in...

What kind of error?(BEHIND THE SCREENS)
March 2, 2006... NAB's much vaunted long-term restructuring hit another hurdle last month with disclosures that its 2005 annual report contained errors amounting to ten billion dollars. Although John Stewart admitted the errors were "embarrassing" he added that...

Customers to be king in new CBA strategy: enhanced customer service is the key focus of a strategic review unveiled by the managing director of the Commonwealth Bank, Ralph Norris.(Commonwealth Bank of Australia)
March 15, 2006... Norris--who took over from David Murray seven months ago--was outlining his vision of making the CBA "Australia's finest financial service organisation". "Our highest priority is going to be customer service," Norris said. "When we...

Citigroup denies insider trading charges: the world's biggest bank, Citigroup, is preparing a major legal defence against charges by Australia's corporate watchdog of insider trading.(NEWS)
March 15, 2006... The Australian Securities and Investments Commission is alleging that Citigroup's Australian arm used inside information when it bought and sold shares in the ports operator, Patrick Corporation. ASIC claims the trading occurred when a...

ANZ boosts Japan project.(Australia and New Zealand Banking Group Ltd.)(Brief article)
March 15, 2006... ANZ HAS APPOINTED YOSHIAKI Inoue as head of Project and Export Finance for Japan. Inoue will report to ANZ head of Structured Export Finance, Chris Mitman, head of Project Finance, Asia, Vikas Batra, and GM of the banks Japan business, Michael...

Branson opens Virgin Home Loans for inspection: low rate, low fee Virgin Home Loan could save borrowers over $25,000.(NEWS)
March 15, 2006... The home loan market is set to get even more competitive, after Virgin Money recently undercut the major lenders with the launch of the new Virgin Home Loan at a low variable interest rate of 6.59% p.a (comparison rate 6.61% p.a. (1)). ...

CBA targets SMEs with new FX service.(NEWS)
March 15, 2006... COMMONWEALTH BANK HAS LAUNCHED AN ONLINE FOREIGN EXCHANGE product aimed at the small to medium business segment. The new service will be housed at www.businessfx.com.au. The intention was to customise a product which would streamline FX...

Readers cast their votes: the 2006 Australian Banking & Finance Awards are up and running with an impressive shortlist and voting coupons are streaming in as readers support the achievements of individuals and companies in the dynamic financial services sector.(2006 AUSTRALIAN BANKING & FINANCE AWARDS)
March 15, 2006... For the first time this year, voting is available online (visit: www.charlton.com.au) and voting coupons will also appear in each magazine leading up the awards night. No changes have been made to the award categories this year except for...

CIO career oaths rising: the days of chief information officers being locked into stereotyped career paths appear to be numbered.(NEWS)
March 15, 2006... And CIOs are now being actively considered in succession planning for chief executive officers. John Loebenstein, CIO of St George Bank, told AUSTRALIAN BANKING & FINANCE magazine's CIO Outlook Luncheon in Sydney it was smart and logical...

Lack of capital causing SMEs to stall: with only five percent of Australian SMEs considered fast growing*, Provident Inventory Finance says the remaining 95 percent are stalling due to a lack of available capital.(NEWS)
March 15, 2006... "SMEs are faced with two financing options when looking to grow their business--debt or equity finance. Debt finance involves a trip to the bank and the associated hoop jumping with security requirements, whilst equity finance involves...

Deep, liquid markets: record volumes at the Sydney Futures Exchange.(NEWS)(Brief article)
March 15, 2006... THE SFE (SYDNEY FUTURES Exchange) set new record daily trading volumes on March 14, with individual records also set for a number of its benchmark contracts. The record volumes were driven by the contract 'roll' process that accompanies...

Bendigo telco paying dividends.(NEWS)
March 15, 2006... BENDIGO BANKS' MOVE INTO the telecommunication market through its Bendigo Community Telco (BCT) venture is paying dividends literally. The telco, which floated on the Bendigo Stock Exchange in October 2005, will pay shareholders a dividend...

Microsoft Australia announces new software financing program: new financing program allows businesses to cut up-front investment by two-thirds and develop technology capabilities faster.(NEWS)
March 15, 2006... MICROSOFT AUSTRALIA RECENTLY announced the introduction in Australia of a competitive new technology financing offering in conjunction with De Lage Landen Australia. This new Financing Program will cut the average Australian company's upfront...

HIOSA to form new co-operative pooling facility: the MISC announced recently the launch of a new Internet Banking Industry Pool to specifically measure and report on High Interest Online Savings accounts (HIOSA).(NEWS)
March 15, 2006... This new MISC initiative comes at a time when several major financial institutions have recently launched their own HIOSA accounts to match those of ING Direct and regional banks like Suncorp and BankWest as well as second tier banks like...

NAB looks to tap SME growth: National Australia Bank is looking to build on its strong business lending performance by lending another A$12 billion to Australia's SME market.(NEWS)
March 15, 2006... The bank said SMEs were seeking extra finance predominantly for equipment, property and working capital. We continue to see strong demand for credit from business owners and business managers, NAB business and private banking executive...

Bendigo & Customers announce joint venture.(NEWS)
March 15, 2006... BENDIGO BANK AND CUSTOMERS LIMITED RECENTLY announced a major strategic initiative to build an independent payment processing business. The parties have entered into a non-binding heads of agreement to pursue the opportunity, subject to...

AmEx launches SMS alert service.(NEWS)
March 15, 2006... AMERICAN EXPRESS HAS LAUNCHED A NEW service that alerts businesses by SMS or email of exchange rates for nominated currencies. AmEx said businesses could selected the currency, amount, date range and the desired exchange rate they would...

Leslie Martin: executive general manager, working capital services, CBA.(EXECUTIVE INTERVIEW)(Interview)
March 15, 2006... Leslie Martin joined the Commonwealth Bank as executive general manager in December 2004 after a couple of years consulting to major organisations on banking infrastructure. Leslie had a 15 year career with Chase Manhattan Bank in Australia,...

Credit where credit's due: rethinking the retail lending process: for many bankers, the credit decision remains the defining act of their profession. This explains why so many banks still employ expensive underwriters in their loan origination processes.(NEWS)
March 15, 2006... This approach is expensive and ineffective. Expensive because underwriters' logic and intuition can be captured by statistical models and business rules--and ineffective because a sequential "credit then customer" approach to the decision...

Risk and compliance management framework for a financial services organisation: Key elements.(SPECIAL FEATURE: RISK MANAGEMENT)
March 15, 2006... The intensified concern with risk and the implementation of enterprise-level approaches to risk and compliance management are being driven by three critical, interlocking factors, according to Gartner: 1. Key legislative and regulatory...

What's the value of the online banking reputation? $1.4 billion apparently!(SPECIAL FEATURE: RISK MANAGEMENT)
March 15, 2006... As the impending beat of Basel II gets louder and closer, there are some interesting lessons being learned on the value of reputational risk. The business risk, which often wields the greatest power and most fear--but is usually the risk least...

Turning data into profit: how the financial services sector can achieve higher growth targets and increase profit margins.(SPECIAL REPORT: STORAGE & DATA WAREHOUSING)
March 15, 2006... It's a common dilemma for executives in the financial services sector: seek ways to grow the business and at the same time stay close to the pulse of the organisation as it expands. Plus, there's the ongoing burden of trying to predict what...

Melbourne bankers: Competition tougher as growth slows.(RETAIL FINANCIAL SERVICES LUNHEON MELBOURNE--PICTORIAL)(Brief article)
March 15, 2006... Top retail bankers Brian Hartzer of ANZ, Allan Griffiths of AVIVA, Andrew Thorburn of NAB and Tom Gentile of GE Money were guest panellists at the recent Melbourne Retail Fiancial Services Luncheon giving their views on the banking outlook for...

Overseas treands.(NEWS)
March 15, 2006... A COUPLE OF OVERSEAS TRENDS INDICATE BOTH CONCERN AND opportunity for bankers in Australia. The first deals with outsourcing, the second with the needs of corporate clients. Decisions recently in Europe to cease negotiations to...

Behind the screens.(NEWS)
March 15, 2006... Those four pillars (again) The Four Pillars debate is surfacing again but with no real consensus among the big four emerging. John McFarlane and David Morgan complain that it's cramping their style with many foreign competitors boasting...