Westpac has doubled down on its commitment to its wealth management subsidiary despite the exit of some household name competitors.
In its annual report released to the ASX, the big four bank announced that the 11 per cent decline in cash earnings for its BT Financial Group subsidiary will not deter it from the wealth management or life insurance market, nor would the strategy of rivals.
Indeed, “wealth” was listed as a specific “growth highway” for the bank going forward, in addition to servicing small to medium enterprises.
“While some of our competitors are increasingly looking to exit their wealth and insurance businesses, we continue to believe that having a strong business in this category will give us an increasing competitive advantage as Australia’s population ages in the years ahead,” the report explains.
However, Westpac expects the market to become more challenging despite the decisions of CBA, ANZ and NAB to sell of key segments of their wealth business, especially in the life insurance space.
“In our wealth business, we expect the broader competitive landscape to continue to undergo significant change with ongoing consolidation in life insurance, continued regulatory and structural change in financial advice, and increased overseas interest and participation in superannuation,” the report states.
The bank also said its decision to sell down its stake in BT Investment Management reflects its commitment to “open architecture”.
Last week, BT announced it will be adding two additional insurers to the approved product list of its bank-aligned advisers in 2018 in response to questions from ifa and several federal MPs.
A Greens senator who was a key agitator for the royal commission has defended his reasoning in pushing for the inquiry, but conceded that it’s not c...
APRA’s sweeping changes to income protection policies are set to force more claimants back to work sooner, as the life insurance industry faces more...
The latest enforcement update from ASIC has noted that court cases brought by the regulator in the six months to December last year under its 'why not...