AMP banks on UK approval

AMP Banking is set to launch in the UK, distributing its products through Pearl's network of financial advisers.

AMP Banking is set to launch in the UK, distributing its products through Pearl's network of financial advisers.

Provided AMP's banking licence application is given the green light by UK authorities, the AMP Financial Services subsidiary will start rolling out serv-ices in the next few weeks.

AMP Banking managing director Stephen Balme says the group will initially dis-tribute products through Pearl but will look to other distribution channels down the track. Other potential channels include AMP's other UK subsidiaries, includ-ing its 50 per cent owned Virgin Direct business.

AMP Banking's launch strategy in the UK is slightly different from the approach adopted in Australia, where most of the group's business has come through direct distribution via the Internet and telephone.

Roughly two-thirds of AMP Banking's 200,000 Australian customers come from the two million customers of AMP's network of financial planners. However, Balme says that while advisers have played an important role in building up the se-cured loan business, most of the transaction-based business has come through di-rect channels.

He says AMP Banking aims to have a quarter of AMP clients (500,000) as customers of the bank within the next three years.

"AMP has adopted an aggregator strategy with its range of financial services products. AMP Banking is one important plank in that strategy," Balme says.

"We have built up the bank quickly and as cost effectively as any other opera-tion in the world. The building blocks are now in place to get the message out to the market."

In line with the aggregator strategy, AMP Financial Services will also launch margin lending and online broking services in the near future.