Sean O’Malley

AMP Bank is re-launching SuperEdge, its residential Self Managed Super Fund (SMSF) lending solution, marking the Bank’s return to SMSF property lending for brokers and their customers.

With more than $1 trillion in assets under management and over 1.2 million members, SMSFs are a major part of our retirement system. Many trustees, particularly pre-retirees, want to invest with greater control and confidence, while maintaining the flexibility and liquidity they need as retirement approaches.

SuperEdge will meet that need, providing a transparent, well-governed lending option delivered through brokers and directly through AMP Bank’s home lending specialists, and supported by a strong credit and compliance framework.

It also includes practical features that reflect how SMSF trustees manage cash flow and risk – including flexible repayment options and an optional SMSF offset facility – alongside a broker-first digital experience designed to reduce rework and speed up decisions.

Sean O’Malley, AMP Bank’s Group Executive, said AMP Bank’s return to SMSF lending is about providing greater choice at a time when retirement planning is becoming more complex.

“Australians approaching retirement are balancing two competing pressures – enjoying life today, while making sure they’ll have enough for tomorrow. That tension is driving demand for solutions that offer more control, flexibility and confidence.

“SMSF trustees want to retire on their terms – but without the right structure and support, those decisions can become harder. SuperEdge is designed to provide trustees with a competitive, transparent and responsible lending option as they build long-term wealth.

“As a challenger bank, we’re thinking differently about lending – using clearer policy settings and smarter digital checks to deliver a better experience, while staying focused on long-term customer outcomes.”

Michael Christofides, AMP Director of Lending & Everyday Banking, said SuperEdge is built around the realities of SMSF lending – for both brokers and trustees.

“SuperEdge combines practical features, like flexible repayments and an optional offset, with a digital broker experience that helps reduce friction and improve turnaround times.

“We’ve built in automated SMSF structure checks and document validation to help cut rework – while maintaining strong responsible lending settings.”

SuperEdge is currently in a pilot testing phase, with broader market availability targeted for Q1 2026.

Product features

• Flexible repayments: Principal & Interest or Interest-Only (up to five years) supported by a documented transition plan.
• Optional offset facility: Supports SMSF cash flow management while maintaining asset separation.
• Broker-first digital experience: Lodge and track applications in one place, with automated SMSF structure checks, LRBA prompts and document validation to reduce rework and speed up decisions.
• Fees: competitive flat fees that include offset flexibility.

Responsible lending settings

• Available to corporate trustee structure only
• Maximum LVR of 80%
• Minimum SMSF net assets of $300,000
• Liquidity test: requiring ≥10% liquid assets post-settlement
• Property location restrictions: Zones 1 & 2 (residential only; no off-the-plan, construction, rural or commercial securities, and no owner-occupied use)

The post AMP Bank re-enters SMSF lending with SuperEdge appeared first on AdviserVoice.

John joins AMP Bank from WooliesX, where he led Customer Growth for E-Commerce. He’s also held senior leadership roles at Commonwealth Bank as Head of Retail Bank Marketing; Facebook as Industry lead for Financial Services, and ING as Chief Customer Officer and Director of Products.

John commences in his new role with AMP Bank today.

Sean O’Malley, AMP Bank Group Executive said: “John is a highly experienced, proven leader, and we’re delighted to have him join the AMP team as we get closer to the launch of our new digital bank in the new year.

“His skills and experience are a perfect fit to lead the new digital division, having had success in transforming and growing B2C organisations, and leading customer, marketing, digital and product portfolios.”

John Arnott, AMP Bank Director Small Business & Personal Banking added: “I’m thrilled to join the AMP Bank team as it enters an exciting new phase of growth with the launch of our new small business and personal banking proposition in 2025.

“One of the main reasons I joined AMP is because of its clear vision to support Australian small businesses, who are currently under supported by the banking industry.

“I believe our new digital solution has the potential to make a meaningful difference to the success of both small businesses and personal banking customers.”

The post John Arnott joins AMP Bank to lead new digital division appeared first on AdviserVoice.

Sean O’Malley

Key insights

• 1 in 3 Australians feel financially secure, down from half during the pandemic
• 1 in 3 Australians have cancelled streaming subscriptions and gym memberships, with more
• Australians turning to family, friends and social media for important financial decisions
• Focus on short-term financial demands impacting longer-term planning

Financial stress levels in Australia are at their highest point in 10 years, according to AMP’s latest Financial Wellness report.

Now in its 10th year, the biennial research examines both the rising challenges and economic impact of financial stress among Australians aged 18 and over. Just one in three working Australians indicated they were financially secure in this year’s report, down from half of working Australians in 2020.

The flow on impact of financial stress also has a hidden cost, affecting the mental wellbeing of working Australians and their families, with a lack of willingness to seek professional help about important financial matters.

Almost one in three Australians who were ‘severely’ or ‘moderately’ stressed turned to friends or family members to help inform important financial decisions, with just one in nine speaking to their super fund and only one in 20 seeking help from a financial adviser.

Equally, one in three Australians have not used any information sources to inform important financial decisions, even if those sources were easily accessible such as podcasts, social media or a Google search.

With rising financial pressures and people focused on meeting major short-term expenses, long-term planning is being compromised with one in three saying they are never or are rarely planning for their financial futures.

AMP Bank Group Executive, Sean O’Malley said: “It’s clear more Australians aren’t feeling secure with their finances, not surprising given cost of living pressures and housing unaffordability challenges.

“And while the research tells us that most are meeting their mortgage repayments, we know that savings rates are down and many are cutting back expenditure on household basics such as groceries, and other more discretionary items such as streaming services and holidays.

“Amid these cutbacks, it’s also evident that many aren’t taking advantage of the support available to them, with a tendency to bottle up their financial worries, in-turn impacting their mental wellbeing.

“We’d encourage more Australians to explore the options available to help them feel more in control of their finances. From a home loan perspective, this could be contacting a bank or broker to see if there is a better rate available on their loan, or different features which are better suited to particular circumstances.  What seem like small things can make a big difference.”

AMP Group Executive, Super and Investments, Melinda Howes said: “What’s also apparent from the research is that with a focus on paying the bills and keeping their heads above water, more Australians are understandably planning and thinking less about their longer-term financial goals.

“The wonderful thing about Australia’s compulsory superannuation system, is with Australia’s high employment levels, most are continuing to automatically build their retirement nest eggs. While Australians should take comfort from this, there is more to be gained from our superannuation system.

“At AMP, we offer our members the ability to get close to your super and feel more in control of their financial circumstances, with digital tools and simple advice available at no extra cost. We also offer a ‘Retirement Health Check’ with dedicated financial wellbeing support available for customers, at no extra cost.

“Services like this can help more Australians optimise their super, gain valuable insight into the magic of compound interest and how just a little extra contributed now can multiply in value over the long term. We encourage all our members to get in touch and speak with one of our friendly experts today.”

Other findings

Transition to retirement remains complex

After a short period of relief between the ages of 51 and 54, stress levels lift sharply. In fact, Australians approaching retirement age have the highest levels of stress of any age group surveyed, with almost two in five being moderately to severely stressed. For many Australians, this fear is heightened when the rising cost of living eats away at your lifetime savings.

Sharp rise in stress for those earning between $100,000 and $150,000

A growing number of Australians earning between $100,000 and $150,000 reported to be less financially secure. Nearly one in four Australians in this income bracket said they were ‘severely’ or ‘moderately’ financially stressed, up by 150% in the space of just two years and nearly triple of those who reported the same during 2020 – raising further questions around how much is needed to feel financially secure.

Financial secrets

The findings also point to a growing number of financially stressed Australians keeping secrets about their finances. Close to one in three have financial secrets, worries, or behaviours they have not shared with anyone else. Of those, almost two in three said they feel ‘embarrassed’ or ‘guilty’ about them and almost one in four believe there is no need to share them.

Letting go of discretionary spend

Faced with the rising cost of living, more Australians are drawing down on accumulated savings and cutting down on their everyday spending, finding new ways to save on non-essential services.  Three in five Australians spent less on groceries this year, two in five went without a holiday and one in three spent less time engaging in regular hobbies and interests. Meanwhile, over half of Australians strongly agree that the cost of living will continue to rise significantly, with less than a third saying they will be financially secure over the next two years.  In addition, one in three have cancelled streaming subscriptions and gym memberships due to financial pressures.

More ‘alone time’

Financially stressed Australians are more likely to reduce both spending and social behaviours or reach out for professional support. Half of those that were ‘severely’ or ‘moderately’ financially stressed spent less time with friends, two in five were more likely to internalise their stress and spent more time in isolation, while over one in three spent less time with family.

Tips for building financial wellbeing

1. Speak to a Super Coach to get reliable information and support: AMP Super coaches can help you get close to your super, with digital tools and simple advice all with no extra fees. AMP also offers a free ‘Retirement Health Check’ with dedicated financial wellbeing support available for customers. Learn more at Superannuation – AMP.
2. Check your home loan is right for you: Speak to your bank or broker and learn how a better rate on mortgage can help you save more. There are a range of home loan products on the market which come with different features based on customers’ preferences, needs and eligibility. Consider what loan options best suit you and your individual circumstances.
3. Get assistance when you need it: There’s plenty of research showing that people who draw on expert advice are less financially stressed and make better decisions. Use reputable sources such as your financial institution, government resources, and trusted third-party comparison websites.
4. Subscribe to our podcast: AMP’s Simplifying Investing podcast with Shane Oliver and Diana Mousina features regular insights from two of Australia’s leading economists to help you demystify the world of superannuation, investing, retirement, home loans and beyond.
5. Check out our Insights Hub: Helpful resources are often available on lenders’ websites, and budget/tracking apps can provide a clear view of your spending patterns. Some examples include AMP’s Insights Hub, our budget planner calculator and expense planner calculator, and ASIC’s MoneySmart tools.

The post Financial stress among working Australians at ‘decade highs’ appeared first on AdviserVoice.

Ben Hillier

Key points

• Most under 40s haven’t spoken to their parents about wealth transferral
• Under 40s not relying on ‘bank of mum and dad’, despite housing unaffordability fears
• Half of under 40s expect to financially support their parents as they age

Insights revealed from the second phase of AMP’s research uncovering Australians’ attitudes to intergenerational wealth show a clear desire of under 40s to secure their own financial independence.

Under 40s are not relying on the ‘bank of mum and dad’ despite concerns that increasing housing unaffordability will impact their own wealth in retirement and the growing wealth divide between generations as property values appreciate.

Further, the research reveals that half of those under 40 believe they will need to support their parent financially as they age, with children and their parents reluctant to discuss intergenerational wealth matters.

Key findings include:

• Half of those under the age of 40 expect to financially support their parents as they age.
• Only 1 in 5 are relying on financial assistance and inheritance from their parents for their future financial security
• 4 in 5 under 40 haven’t asked their parents for any financial support.
• 3 in 5 under 40 haven’t spoken to their parents about wealth transferral.
• 3 in 5 under 40 believe their generation has it harder financially than their parents did, increasing to 7 in 10 for those under 29.
• 4 in 5 under 40 who currently don’t own a property believe it will be out of reach.
• 4 in 5 under 40 believe that not owning a property will be detrimental to their long-term wealth in retirement.
• 8 in 10 under 40 would consider purchasing a property with a friend or a family member, 4 in 5 for those under 29.
• Under 40s believe home ownership is the main contributor to wealth in retirement (40%), followed by savings (23%) followed by super (18%), followed by investment property (15%), followed by shares (5%).

The findings follow the first phase of AMP’s intergenerational wealth research which shows that retirees want to support their children, but are also concerned about their own financial security and lifestyle.

An estimated $3.5 trillion is set to be transferred by Australians aged 60+ in the next two decades, with 90% of all intergenerational wealth transferral occurring through death inheritance^[1].

We also know that most Australians find our retirement system complex^[2], likely contributing to retirees underspending in retirement, with the Intergenerational Report finding that many draw down at the legislated minimum on their super balance^[3].

AMP Director of Retirement, Ben Hillier said: “This latest research reveals an interesting dynamic within families, including a lack of communication between the generations on wealth matters.

“It’s also evident that while many Australians under 40 are concerned about housing unaffordability and its impact on their long-term wealth and retirement, they are reluctant to ask for financial support from their parents, with many actually believing they will need to financially support their parents as they age.

“It’s worth considering these findings with the knowledge that many Australian retirees are fearful their savings won’t last – a fear which prevents spending and impacts their quality of life. It’s also very possible these concerns are inadvertently conveyed to their children and hinder open dialogue on wealth matters.

“We have a significant opportunity in Australia to help more retirees build their financial confidence, empowering them to fully enjoy their post-working years. This can be achieved through better access to lifetime income solutions and financial advice, improved financial literacy at all ages, and a simplified retirement system.

“Most importantly this confidence could improve their quality of life in retirement, but it could also be a catalyst to open the lines of communication with their children on important wealth matters, such as inheritance and estate planning. It may even empower them to support their children financially, which we know from AMP’s previous research^[4] they’re keen to do.

“Importantly, the sharing of knowledge and insights could help build greater collective financial literacy and confidence within the family unit.”

AMP Bank Group Executive, Sean O’Malley said: “It’s also clear from the research that under 40s are concerned housing unaffordability will impact their long-term wealth – a justifiable concern given home ownership is one of the key pillars for wealth in retirement for most Australians.

“Building the financial confidence of retirees and finding better ways to unlock home equity would also empower more older Australians to support their kids.

“While this needs to be tackled at a macro level by federal and state governments, there are other, more immediate options for younger Australians wishing to purchase their first property. For example, AMP’s research has indicated a strong willingness of younger Australians to consider joint property ownership with family and friends.

“Fractional lenders, such as Bricklet, specialise in offering this service, and can provide an alternative and lower risk means of joining the property ladder.

“We would encourage younger Australians to talk to their bank or broker about the different lending options available to them.”

Other findings from the research include:

• 2 in 5 Australians aged 50 to 58 indicated they don’t have a will in place.
• 9 in 10 Australians under 40 believe owning a property is important for building wealth.
• Of those under 40 who don’t own a property
  • 4 in 5 are concerned home ownership will out of reach
  • 4 in 5 are concerned with will impact their long term wealth.
• Only half of Australians under 40 believe they can afford to buy a property in the same areas where their parents live and where they grew up.
• 4 in 5 under 40 would or have relocated to buy their first home.
• More than 2 in 5 under 40 believe their parents’ property is too large or doesn’t meet their current needs.
• 7 in 10 under 40 want to live in the property they buy.

About the research

AMP commissioned Dynata in February 2024 to conduct a survey of 2000 Australians aged 50 years and over and under 40 years in relation to their attitudes to retirement and intergenerational wealth transferral.

——–

Notes:
[1] Wealth transfers and their economic effects. Australian Government Productivity Commission, 7 December 2021.
[2] AMP commissioned research, released September 2023.
[3] Intergenerational Report 2023, Australia’s Future to 2063, 24 August 2023
[4] https://corporate.amp.com.au/newsroom/2024/june/the-conflicting-priorities-facing-retirees-and-the–never–leave

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Alexis George

Key points

• AMP to launch digital bank division built specifically for the transaction needs of sole traders and small business.
• AMP to work with Engine by Starling (Engine), the SaaS subsidiary of leading UK digital bank, Starling Bank Limited (Starling), allowing it to leverage:
  • Starling’s ‘Engine’ technology platform, and
  • Engine’s expertise to build the new AMP digital bank division, to be in market by 1Q 2025.
• ~$60m investment over FY24 and FY25, absorbed within current controllable cost targets.
• New digital bank division is expected to be Net Profit After Tax (NPAT) and Return on Capital (ROC) accretive for AMP Bank from 2027 onwards.
• Next step in AMP Bank strategy, to lessen funding risks in the medium term through a focus on building deposits.

Next phase of AMP Bank strategy

AMP has announced that it is progressing with the next phase of its Bank strategy with the launch of a new digital bank offer targeting the small business and consumer markets. The solution will be built in FY24 and launch in Q1 2025, operating on a separate technology platform, as a new division to AMP Bank.

AMP is working with Engine, the SaaS subsidiary of Starling Bank, a leading UK digital bank. AMP will leverage Starling’s ‘Engine’ technology platform in building the new AMP digital bank offer, under a Software as a Service agreement.

Targeting sole traders and small businesses with 1-20 employees, the new digital bank division will offer transaction and savings accounts. It will be designed to provide tailored functionality and features to help small business owners manage their finances ‘on-the-go’ from their mobile phones. Deposit balances from the sole trader and small business segment totalled nearly $220 billion as at June 2021¹. Out of 2.6 million businesses in Australia, these segments accounted for 2.5 million businesses as at June 2022².^[1]

Financials

The new digital bank division requires an investment of approximately $60 million across FY24 and FY25, which will be absorbed within current controllable cost targets and of which approximately $40m will be capitalised. This near-term cost outcome reflects the repurposing of existing Bank investment spend, as well as the positive impact of the broader ongoing business simplification program.

It is expected to be Net Profit After Tax (NPAT) and Return on Capital (ROC) accretive for AMP Bank from 2027 onwards. There is expected to be no impact on AMP’s previously announced FY24 and FY25 controllable cost targets.

This next step in the AMP Bank strategy also aims to lessen funding risks over the medium and longer term, with a focus on continuing to build a sustainable funding base.

Alexis George, AMP Chief Executive said: “This new offer builds on AMP Bank’s strengths and addresses an under-served and growing segment of the market. Importantly, it will reshape the Bank portfolio in the medium term to better position AMP for the headwinds the industry is facing when it comes to bank funding.

“In Engine by Starling, we have chosen a partner with a track record of success and will leverage their innovative technology platform, their highly successful go-to-market expertise and ways of working.

“By partnering with one of the most innovative and fastest growing digital banks we will be able to better serve Australia’s growing number of small businesses, and individuals, with their banking needs.”

Sam Everington, CEO of Engine by Starling:  “Starling Bank has proven in the UK that it’s possible to deliver a resilient and powerful digital banking platform that is valued by customers, as well as being highly scalable and operationally efficient.

“There are clear parallels between the banking markets in Australia and the UK, and we look forward to leveraging Engine’s expertise and technology for AMP customers.”

Sean O’Malley, Group Executive, AMP Bank said: “The rapidly growing Australian small business market presents a significant opportunity for AMP Bank.

“Working with Engine enables us to equip small businesses with the best digital tools to help them manage their finances efficiently and conveniently on their mobile phone whilst on the go.”

AMP Bank outlook

AMP Bank’s near-term performance will continue to be affected by current market conditions. Current market conditions indicate Net Interest Margin (NIM) of approximately 125bps for FY23, and NIM will continue to be under pressure in FY24. However, NIM is expected to be positively impacted in the medium and longer term by lower funding costs as a result of this initiative diversifying AMP Bank’s funding sources. AMP Bank growth is expected to be nominal in FY24, as we continue to manage return on capital.

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Sean O’Malley

AMP Bank has launched a digitally enhanced application process for customers seeking to increase the size of their home loan. Turnaround times are now twice as fast since AMP Bank delivered its initial enhancements to loan increases in March this year.

The new process enables quicker response times for brokers and customers, and faster time to approval.

The enhancements in ApplyOnline® make the application process simpler and utilise system integrations with valuations and LMI to improve the application response time.

AMP Bank’s deployment of FASTRefi® has also seen customers receive their funds three times faster, compared to a standard refinance process once customers’ documentation has been returned.

In addition, AMP Bank has unlocked faster turnaround times through its partnership with CoreLogic, with new types of digital valuations helping to enhance the process and improve the experience for brokers and customers. In the past three years, AMP Bank has reduced its average turnaround time across all valuation types by ~40%, by optimising its digital valuation mix.

Over 60% of AMP Bank’s property valuations this year were completed by CoreLogic’s automated valuation model (AVM) or its digital desktop tool. As a result, AMP Bank is seeing some customers receive a response on their valuation almost instantly with AVM, and it’s increasingly within an hour for the desktop approach. AMP Bank has recently initiated a pilot of CoreLogic’s SMARTval capability, which continues its investment in digital tools to improve turnaround times for short form valuations.

AMP Bank continues to invest in ongoing digitalisation and automation to improve customer and broker outcomes as it drives strong relationships with its broker partners.

Sean O’Malley, Group Executive AMP Bank said: “The digitally enhanced home loan increase application enables quicker response times for brokers and customers.

“With our latest enhancements, brokers should start to notice faster response times when applying for a home loan increase, and an improved online experience which makes applications easier and faster for brokers to submit.

“We’re focused on embedding a digital-first service experience, and having the right technology in place to support our brokers and deliver for customers is critical.

“AMP Bank continues to invest in its home loan processing technology, and we are committed to delivering a strong service experience across our channels.”

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Sean O’Malley

New national research from AMP Bank has found that 7 in 10 (69%) homeowners with a fixed home loan component don’t know the variable revert rate they would roll onto.

The findings come as we approach the peak of the fixed rate roll-off transition period, with most fixed-rate loans taken out during the Covid pandemic set to expire1. According to RBA figures, 880,000 loans in total are due to expire in 2023, and a further 450,000, or 20% by the end of 20242.

Other findings from the research show:

• 1 in 5 (20%) Australian homeowners don’t know their home loan’s current interest rate
• a quarter (26%) of homeowners don’t know when their fixed rate is due to expire
• 80% of those with a fixed component don’t know what a ‘revert’ rate is, and 21% don’t know what a redraw facility is
• most homeowners keep savings in a separate savings account (54%), with less than half using an offset account (46%). 11% report using term deposits.

The research demonstrates Australian homeowners lack understanding of key aspects of their home loan and the options available to them. For example, more than half (54%) of those surveyed indicated they don’t know how to use an offset account.

An offset account can potentially save Australian homeowners thousands over the life of a loan if used effectively. AMP Bank’s modelling shows an offset account balance of $40,000 could save homeowners more than $170,000 in interest payments and reduce the life of a loan by three years3.

Sean O’Malley, Group Executive AMP Bank said: “AMP Bank’s latest research has found there are many Australian homeowners who could be more engaged with their mortgages. Not knowing about key aspects of their home loan or how it works, could be costing them in the long run.

“Your home loan is probably the biggest financial commitment you’ll make in your lifetime. Making some simple changes, for example maximising the benefits of an offset account can help you pay off your home loan sooner.

“It’s a reminder of the importance of checking in on your finances and making sure your home loan is fit for purpose. I encourage all homeowners take the time to understand key features and terminology of their loan, and to ask your broker or lender if you’re not sure.”

AMP Bank expands its digital home loan to give more customers access

The findings come as AMP Bank today expands its digital mortgage offer to include an offset account.

AMP Bank’s digital application is one of the few in the Australian digital mortgage market with features including an offset account, interest only repayment options and fixed interest rates, opening the offer to more customers. Eligibility of AMP Bank’s digital mortgage will soon be broadened with self-employed income to be eligible, further to the currently accepted PAYG salary or rental income.

The online application process is a guided step-by-step experience which uses secure, automated assessment tools to provide a fast decision. AMP Bank’s online home loan application allows customers to choose between AMP Bank’s two most popular home loans; the offset Professional Package Home Loan, or the low-rate AMP Essential Home Loan.

Visit AMP Bank’s website for more information about its digital home loan.

Sean O’Malley, continues: “The enhanced capability of our digital mortgage released today strengthens AMP Bank’s position as a digitally enabled bank.

“We continue to focus on strategic investment in digital technology to simplify and enhance customer and broker experience.

“The digital application experience makes the process of getting a home loan or refinancing simpler, and in most cases, a lot faster.”

Tips to get the most from your home loan:

• Tailor your home loan to suit you. The way you structure your home loan could help you pay less interest in the long run and take years off your mortgage. It’s a good idea to find out the features of your home loan and how they work. While they might sound good in theory, they may not be what you need. Online resources like ASIC’s MoneySmart tools, and AMP Bank’s repayment and offset calculator provide helpful information and help to estimate your interest savings, and how much you can reduce your loan term, by making regular additional repayments.
• Create an offset account. An offset account operates like a transaction account, but it reduces the interest you pay as interest is only charged on the mortgage balance less the offset account balance. If you haven’t already, check if you can link an offset deposit account to your home loan.
• Take advantage of your redraw facility. It allows you to request to access extra repayments you might have made, on top of your minimum repayments, when you need it. So, if you have unexpected expenses or other things you need money for, it’s worth checking if you have available funds on your home loan that you could redraw. But bear in mind this could extend the life of your loan and mean you end up paying more interest in the long run.
• Consolidate other debt into your home loan. You’ll generally find the interest rate on your home loan is lower than the interest on your credit cards or personal loans. So, if you have any debt, you could transfer this over to your home loan so that you don’t pay as much overall interest.
• Increase your repayments and pay your home loan off sooner (if you can). Creating a budget could help you get across how much income you’ve got coming in, how much you need for the essentials and where the rest of your money might be going. This will help you identify if there’s any room for movement and if you could potentially add a little bit extra to your repayments. AMP’s budget planner calculator could help you crunch the numbers.

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Sean O’Malley

AMP Bank has announced it will begin lending to mortgage broking businesses, strengthening its commitment to the mortgage broking industry.

Mortgage broking finance builds on the Bank’s deep experience in the third-party channel and existing commercial lending practice with financial planners.

The new offer is customised to broker circumstances and provides competitive credit policies. The offer will support a variety of scenarios for brokers that will support the growth of their businesses, including mortgage broker mergers, acquisitions, equity buy-ins and investments. AMP Bank has been engaging with leading aggregators to ensure the offer will deliver on the needs of brokers.

AMP Bank’s relationship managers and business development team already provide education, counsel and strategies for brokers and adviser businesses, which will be complemented by the introduction of the Bank’s finance offer.

AMP Bank’s investment to support brokers in growing their businesses reflects the Bank’s commitment to intermediary distribution and its importance to driving the Bank’s strategic growth agenda.

The Bank is also delivering enhancements, including to self-service capability and support for brokers and advisers, along with increasingly digitalising and automating the lending experience across its channels.

Sean O’Malley, AMP Bank Group Executive said:“The mortgage broker profession continues to grow and play an important role in supporting Australians realising their home ownership aspirations.

“Th ere is an important role AMP Bank can play to support brokers in growing their businesses. This includes acquisition, succession planning, or other investment opportunities.

“We are proud of our longstanding commitment to brokers, and that we’re able to continue to back the next phase of their businesses.

“Providing mortgage broking finance strengthens our offer in the third-party channel and supports our strategic agenda to grow AMP Bank.”

Paul Herbert, Head of Intermediary Distribution and Governance said: “AMP Bank has strong experience partnering with brokers and advisers, and close relationships with aggregators and their distribution network.

“Mortgage broking finance is a natural fit for the Bank within our existing expertise, and further demonstrates our commitment to brokers.

“Any brokers interested in our offer should speak to their AMP Bank Business Development Manager or their aggregator to learn more.”

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Sean O’Malley

New research released by AMP Bank has confirmed that while an increasing number of Australian mortgage holders are concerned about rising interest rates, the majority are taking positive steps now to cushion the financial impact.

The key findings of the research are:

• Seven in 10 (69 per cent) homeowners will be worried about meeting their mortgage repayments if interest rates continue to rise, an increase of 5 percentage points compared to October 2022.
• The majority of people surveyed, 83 per cent, have built a savings buffer and have access to savings to cover an extra month’s mortgage repayment.
• More than two thirds (71 per cent) have made changes to their household budgets, most commonly this included reducing spend on groceries, entertainment, clothing, holidays, and gifts to account for higher interest rates (up from 58 per cent in October 2022)
• People with children and those under 44 noted the highest impacts, with 79 per cent of these groups having adjusted their household budgets, compared to the national average of 71 per cent.
• Aside from reducing spending, 54 per cent have found other ways to supplement their cashflow and income to increase their savings buffers with 74 per cent of these people saying actions they have taken have helped to improve their sense of financial wellbeing.

AMP Bank’s research found that only 45 per cent of people were confident that their current rate was competitive, and that half (49 per cent) were considering refinancing in the next year.

Two-thirds of respondents (62 per cent) who have a fixed rate component to their mortgage also say they are taking steps now to prepare for the end of their fixed rate term. The vast majority (96 per cent) expect interest rates to continue to rise.

Sean O’Malley, AMP Bank Group Executive said: “In a period of higher costs of living, it’s no surprise that mortgage holders are finding more creative ways to improve their household budgets, including finding a way to create a savings buffer.

“While rising interest rates and higher costs of living are challenging, it’s a positive sign that Australians are taking action to improve their financial wellbeing. Steps like reviewing cashflow, setting a budget and regularly shopping around for a more competitive interest rate offer are practical ways to help reduce financial stress.

“Many Australian homeowners will find themselves in a higher interest rate environment as they roll-off fixed home loans in the months ahead.

“If not already, it’s a good idea to talk to your bank or broker to understand your options and get resources and help tailored to your circumstances.”

Tips for managing financial wellbeing

1. Find your bearings: Start by clarifying exactly where you are financially, including both your spending and income. Then take advantage of one of the many budget/tracking apps that provide a clear view of your spending patterns, for example AMP’s budget planner calculator and expense planner calculator, and ASIC’s MoneySmart tools.
2. Check your home loan is right for you: There are a range of home loan products on the market which come with different features based on customers’ preferences, needs and eligibility. Consider what loan options best suit you and your individual circumstances.
3. Get assistance when you need it: There’s plenty of research showing that people who draw on expert advice are less financially stressed and make better decisions. Use reputable sources such as your financial institution, government resources, and trusted third-party comparison websites.
4. Don’t hesitate to contact your bank or talk to your broker for specialised help. In cases where it’s needed, most banks will have dedicated financial wellbeing support available for customers.

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Sean O’Malley

AMP Bank has announced the acquisition of Nano’s residential mortgage portfolio, adding approximately A$400 million in loans to AMP Bank’s residential mortgage book.

The acquisition continues to support the growth of AMP Bank while maintaining the high-credit quality of the mortgage book. Nano’s mortgage book consists of primarily owner occupied, principal and interest loans, with strong credit quality.

The agreement also delivers on Nano’s strategy to focus on being a provider of technology to financial services companies rather than a home loan provider.

Nano customers will transition to AMP Bank in March 2023 on a comparable product and maintain their current interest rate.

In 2022, AMP Bank partnered with Nano to deliver its digital mortgage offering and continues to work with the FinTech to extend the offer this year.

Sean O’Malley, AMP Bank Group Executive said: “We’re pleased to welcome Nano’s customers to AMP Bank, and we look forward to continuing to support them with competitive interest rates, strong customer service, and provide access to more banking products to help them achieve their goals.

“The continued strong growth of AMP Bank has been largely organic, driven by investments in our service, digital capabilities and competitive offers to attract new customers, particularly through the mortgage broker channel. However, in line with our objective to grow the bank and increase our direct to customer channel, we will continue to consider acquisition opportunities where they make strategic sense and maintain the high quality of our loan book.

“Given our existing partnership with Nano to deliver one of the first true end-to-end digital mortgages, and the detailed understanding of their business, the opportunity to acquire their direct to customer loan book aligned well with our strategy.”

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