Australian Banking & Finance articles from September 2004

Australian Banking & Finance archives from September 2004

Insurance boom set to continue.
September 21, 2004... AUSTRALIA'S GENERAL INSURANCE sector has reaped the benefits of a hard underwriting market and improved investment performance to announce its best results in decades. Profits after tax for the major players in the sector soared from $916...

McFarlane drives ANZ change with specialist strategy; ANZ Bank chief executive John McFarlane had news for the attendant who insisted his flame-red Chrysler Jeep wasn't allowed in the bank's parking lot under rules set by a predecessor: "I make the rules now.".
September 21, 2004... McFarlane, previously a Standard Chartered Plc executive director, had just arrived in Melbourne in 1997 to lead the worst performer among Australia's four largest banks. Former chief Will Bailey bad banned red autos after his car was...

RAMS expands range of loans to brokers.(Current Account)(Brief Article)
September 21, 2004... RAMS HOME LOANS HAS SIGnificantly expanded the range of home roans available to mortgage broking partners, launching RAMS Better Offset Gold and relaunching RAMS Basic Line of Credit as a standard commission rate product. RAMS Better...

US Federal Reserve Board Chairman Alan Greenspan and his wife Andrea Mitchell arrive at the Jackson Lake Lodge in Jackson Hole, Wyoming, to attend a banking symposium.(banking world)(Brief Article)
September 21, 2004... US Federal Reserve Board Chairman Alan Greenspan and his wife Andrea Mitchell arrive at the Jackson Lake Lodge in Jackson Hole, Wyoming, to attend a banking symposium. Greenspan explained his warning made in February this year that the US may...

GIO brand rejuvenation.(Current Account)(Guaranteed Insurability Option)(Brief Article)
September 21, 2004... SUNCORP'S PLANS TO GROW its share of the national general insurance market have been boosted receive a huge with the launch of a major marketing campaign designed to breathe new life into the group's GIO brand. Suncorp's group executive...

Speech technology improves.(another view)
September 21, 2004... THERE'S A LOT OF TALK going around the banking industry these days. To improve customer service, banks are increasingly turning to speech-based technology. For years, banks have relied on call centers to handle consumers' questions....

On the record.(Current Account)(Brief Article)
September 21, 2004... "We now have a clearly charted path for improved performance underpinned by a sharp focus on providing customers with great products delivered with first-class service by a great team." SUNCORP CHIEF JOHN MULCAHY, ANNOUNCING A 61% RISE IN...

Big spenders pip savers as consumer confidence soars; Australia is now home to record numbers of big spenders and baby boomers are leading the splurge, according to a comprehensive new stocktake of the nation's spending habits by Virgin Money.(News)
September 21, 2004... The Virgin Money Spenders Report tracks our inclination to save or spend ever the past two years, based on interviews by Nielsen Media Research with more than 30,000 Australians between June 2002 and June 2004. The report categorises...

CUA shows results of upgrades.(News)(Credit Union Australia)
September 21, 2004... CREDIT UNION AUSTRALIA has experienced some of the strongest fiscal growth in the credit onion's history. CUA managing director Graham Olrich said CUA posted an after-tax profit of $20 million to June 30. This was boosted by $3.9...

Sustainability index has Westpac on top: Westpac leads the global banking community on corporate sustainability, according to the 2004/2005 Dow Jones Sustainability Index.(News)(Dow Jones Sustainabitity Index )
September 21, 2004... The Dow Jones Sustainabitity Index is based on a thorough assessment of each company's economic, environmental and social performance and influences the decisions of asset managers who use it to as a benchmark for sustainable investment...

Finance companies boost profits; Australia's finance companies performed well during 2003 and increased their profitability by 23.7%, according to a survey by KPMG.(News)
September 21, 2004... The survey revealed that finance companies' performance compared favourably to the performance of the banks. The sector's return on equity (ROE) of 16.41% (up from 13.6% in 2002) was the highest since 1994. "The ROE for finance...

ING's interactive website.(News)
September 21, 2004... A NEW WEBSITE DESIGNED TO teach kids about earning, spending, saving and investing has been launched by ING Direct. With the help of animated guides OAm and Osam kids visiting mtrek are taken on a world trek Moneyland, the republic of...

Refinancing figures mask housing market.(News)
September 21, 2004... THE STRENGTH OF THE HOUSING market in Australia during the past year appears to have been largely exaggerated because of the level of refinancing contained in official loan figures. Australian Banking & Finance newsmagazine has obtained...

Banks offered alternative to fixed dialup.(News)(Braintree Communications )
September 21, 2004... AUSTRALIA'S FIRST DIAL TO WIREless EFTPOS conversion device is set to help banks economically migrate to IP whilst simultaneously making multiple modem racks, excess 1800 phone number charges and multiple phone rentals a thing of the past. ...

CBA set to buy into Chinese bank.(News)(Jinan City Commercial Bank)(Commonwealth Bank of Australia)
September 21, 2004... THE COMMONWEALTH BANK says it is at an advanced stage of discussions with a Chinese bank, Jinan City Commercial Bank regarding strategic cooperation. This strategic co-operation would involve purchase of shares in JNCCB by the Commonwealth...

Credit card fraud on the decline; losses to credit card fraud in Australia fell by almost 8% in 2003 to $92.2 million.(News)
September 21, 2004... As a percentage of card spending, credit card fraud stands at 0.10%. Research house Datamonitor, however, argues that payments stakeholders such as card issuers, acquirers and industry associations must continue to invest in anti-fraud...

Internet banking solution enhanced.(News)
September 21, 2004... NCR CORPORATION HAS enhanced its eCommerce Internet Banking solution to enable financial institutions to expand significantly the types of electronic interaction with their valued online customers. NCR's offer, which is based on the...

McFarlane's specialist strategy.(News)
September 21, 2004... In addition, he introduced a "specialist" model that made executives responsible for 16 autonomous businesses such as credit cards and mortgages. "Specialists win over generalists," McFarlane said, citing results from the Sydney Olympic...

Banks act to improve online service.(News)
September 21, 2004... WITH CONSUMER TAKE-UP OF online banking services continuing to improve (over 4 million Australians now utilise online Banking) Australia's banks are now turning their attention to improving online customer service. This and other findings...

Richards to head up HSBC retail.(News)
September 21, 2004... HSBC HAS APPOINTED Alan Richards as its head of Personal Financial Services, with responsibility for driving HSBC's retail, banking and wealth management capabilities in Australasia. Richards has been with the HSBC Group since 1984. ...

Direct debit--is it now out of place? Having been around for some 30 years, the direct debit (DD) has long been seen by its advocates as the ever-reliable warhorse of business to consumer banking.(News)
September 21, 2004... However it remains unable to pass the 40% take-up rate in even UK, its original, and strongest base, whilst newer markets have proved increasingly hard to penetrate. Understanding some of the reasons may help users determine how far they...

Mortgage broking--time to correct misinformation.(News)(Mortgage Industry Association)
September 21, 2004... THERE HAS BEEN A SIGNIFICANT amount written about the mortgage broking sector over recent times. A lot of it has assisted in better public understanding of a growing sector of the financial services marketplace; some of it however has done...

Stephen Green, group chief executive, and Douglas Flint, finance director of HSBC Holdings Plc., seen together at a press conference in London, Monday, August 2, 2004.(Banking World)
September 21, 2004... Stephen Green, group chief executive, left, and Douglas Flint, finance director of HSBC Holdings Plc., seen together at a press conference in London, Monday, August 2, 2004. Europe's No. 1 bank by market value, had a record first-half profit as...

Customers talk to a banking officer in a Housing Development Finance Corp.(Banking World)
September 21, 2004... Customers talk to a banking officer in a Housing Development Finance Corp. (HDFC) bank in New Delhi, India Monday, July 19, 2004. Photographer: Amit Bhargava/Bloomberg News. [ILLUSTRATION OMITTED]

Shanghai Vice Mayor Feng Guoqin, William F. Muir, president of General Motors Acceptance Corporation, and Hu Maoyuan, president of SAIC, unveil a plaque bearing the name of of a new finance venture GMAC-SAIC, during a press conference in Shanghai, China.(Banking World)
September 21, 2004... Shanghai Vice Mayor Feng Guoqin, left, William F. Muir, president of General Motors Acceptance Corporation, center, and Hu Maoyuan, president of SAIC, unveil a plaque bearing the name of of a new finance venture GMAC-SAIC, during a press...

Armando Falcon, director of the Office of Federal Housing Enterprise Oversight, speaks with Alicia Castaneda, chair of the Federal Housing Finance Board, in Washington, DC.(Banking World)
September 21, 2004... Armando Falcon, left, director of the Office of Federal Housing Enterprise Oversight, speaks with Alicia Castaneda, chair of the Federal Housing Finance Board, in Washington, DC. The two were testifying before a hearing of two house...

Behind the screens.(News)
September 21, 2004... The Commonwealth Bank is certainty serious about moving into the massive Chinese market. The bank hired a private jet to take its entire board to the city of Jinan this month while announcing the bank was at an advanced stage of discussions...

PMI reaches $1bn mark.(News)
September 21, 2004... PMI MORTGAGE INSURANCE HAS exceeded a total, asset base of $1 billion, representing a quadrupling of total, assets over the last five years. This milestone not only reflects a growth in market share, including the successful 2001...

Westpac eyes local expansion; with credit growth slowing in Australia, Westpac boss David Morgan says it is keen to grow its operations in Australasia.(Brief Article)
September 30, 2004... "WE STILL SEE A LOT OF OPPORTUNITY FOR us left in our home markets of Australia, New Zealand and the near Pacific," Morgan said. Westpac has a home advantage when it comes to consolidation in the banking sector and is pursuing increased...

Macquarie chief talks up the advantages of globalisation: "organic expansion is a lot safer".(Brief Article)
September 30, 2004... GLOBALISATION IS THE MOST important business phenomenon of our time, according to Macquarie Bank chief executive Allan Moss. "Almost one million Australians now work offshore and that is truly amazing," he said. Addressing a lecture...

Multi-channel alerts next step in quest to boost satisfaction.(Brief Article)
September 30, 2004... MULTI-CHANNEL ALERTS ARE THE NEXT STEP IN the financial services industry's never-ending quest to improve customer satisfaction while simultaneously reducing service costs. Several financial institutions that have implemented account...

Bank Qld enhances multi-channel CMA.(Current Account)(Cash Management Account)
September 30, 2004... BANK OF QUEENSLAND HAS weighed into the competitive Cash Management Account war in a big way, restructuring its CMA to offer a leading 5% a year on balances as low as $5000 in a full-access account. Bank of Queensland has refused to follow...

Treasury opportunities.(Current Account)
September 30, 2004... WILL CORPORATES OUTSOURCE their Treasury operations to banks? It is recognised that large corporations, particularly transnational ones, must have an effective treasury operation. However the issue is being asked more and more whether...

RBA urged to move on EFTPOS.(Current Account)(Reserve Bank of Australia )(Brief Article)
September 30, 2004... THE AUSTRALIAN BANKERS' Association (ABA) has urged the Reserve Bank to ensure business certainty by finalising its designation process for EFTPOS as soon as possible. David Bell, chief executive of the ABA, said: "The ABA prefers self...

Changing employers commonplace.(facts & figures)(Brief Article)
September 30, 2004... ALMOST A QUARTER (23%) OF THE 9.4 million people aged 15-69 years working in February 2004 had been in their current job for less than one year, according to the Australian Bureau of Statistics. The 'accommodation, cafes and restaurants'...

On the record.(Current Account)
September 30, 2004... "We don't see the consolidation has fully yet run its course in Australia and New Zealand and we want to be in a position to participate in that consolidation when opportunities arise that are consistent with our criteria." WESTPAC CHIEF...

Australian insurers breathed a sigh of relief this month when Sydney was hit by a spectacular hailstorm on Father's Day.(News)(Brief Article)
September 30, 2004... Australian insurers breathed a sigh of relief this month when Sydney was hit by a spectacular hailstorm on Fathers's Day. Fortunately for both customers and insurers the damage was minimal, but some insurers told Australian Banking & Finance...

Golden lending days are over.(News)
September 30, 2004... LENDING COMMITMENTS IN THE Australian mortgage market are set to increase by a further 20% over the next five years, from $197.6 billion in 2003 to $239.4 billion in 2008. However Datamonitor's forecasts indicate that while the outlook for...

Insurers need to upgrade risk management process.(News)
September 30, 2004... WHILE AUSTRALIAN INSURANCE companies recognise the importance of risk management, there is still room for companies to upgrade their risk measurement techniques, according to Ernst & Young. Ernst & Young's Financial Services Group recently...

Consumer interests paramount.(News)
September 30, 2004... THE ARGUMENT ABOUT WHO sets the rules for mortgage brokers is largely irrelevant, says Emma Hodgman, a partner specialising in banking and finance litigation with national law firm Dibbs Barker Gosling, She believes what is relevant is...

Swaps trading to go live despite market scepticism.(News)
September 30, 2004... ALMOST ONE THIRD OF SHORT-dated interest rate swaps will trade electronically by the end of 2006. Medium and long-term swaps, however, will remain ill-suited to electronic trading for the foreseeable future, says research house Celent...

Corporate fraud on the rise.(News)(Brief Article)
September 30, 2004... A SURVEY OF PROFESSIONAL investigators and risk managers conducted by Deloitte Forensic reveals there has been a significant increase in fraud activity in the last year. The survey, which polled the 125 delegates at the 2004 Asia Pacific...

Rich man, not so poor man.(News)
September 30, 2004... The income gap between Australia's rich and poor postcodes grew only marginally between 1996 and 2001, according to an analysis of Census data published in the latest AMP.NATSEM Income and Wealth Report. According to the report, called...

Technology offers first-mover bonus.(News)
September 30, 2004... AUSTRALIAN BANKS AND FINANCIAL institutions currently face a number of technology issues which are impeding many of them from rapidly implementing new applications and gaining first mover advantage. Many financial, institutions have not...

Asian clients mean big business for banks.(another view)(Biography)
September 30, 2004... LOS ANGELES: WALK INTO ONE OF the 42 East West Bank branches in California, and it won't take long before you realise it isn't a typical bank. The tellers may greet you with "ni hao" instead of hello. Savings account interest rates listed...

Operating conditions remain attractive: in a recent speech Westpac chief executive David Morgan discussed the health of the Australian banking sector, how Westpac has positioned itself and improved its resilience and how its culture is sustaining strong growth and returning value to shareholders.(News)
September 30, 2004... WITHOUT QUESTION THE LAST decade has been a golden era for the banking sector in Australia. As an industry we began the 1990s representing around 14% of the Australian stock market. Today we represent 23%. In the 5 years to 1999, share...

Macquarie Bank CEO goes global.(Allan Moss Lecture-Pictorial)
September 30, 2004... The chief executive of Macquarie Bank Allan Moss was the guest speaker at a lecture presented by Australian Banking & Finance newsmagazine this month. He focused on the benefits of globalisation. David Coli, Telstra, Melissa Bowden, QPL...

Behind the screens.(News)
September 30, 2004... The man they call "the smiling crocodile", Credit Union Australia chief executive Graham Olrich, is said to be sharpening his teeth for another southern assault. Screens hears the expansion-minded Olrich has his sights on the well-performed...

Pricing all important: RBA: the Reserve Bank has warned banks about risk pricing because of the slowing housing market in its latest Financial Stability Review.(News)(Reserve Bank of Australia )
September 30, 2004... As has been the case for some years now, the Australian financial system remains in good shape, with recent developments generally being favourable from a financial stability perspective. The continuing expansion of the Australian economy,...