AMP plans digital bank launch for small businesses
AMP is to launch a digital bank for sole traders and small businesses, in partnership with UK digital bank Starling.
The build will take place over the next 12 months and is expected to launch in the first quarter of 2025 as a mobile app only. The app will offer customers transaction accounts, spending insights, debit cards and accounting integration and it expects to offer term deposits, overdrafts and savings accounts in the future.
It will particularly target sole trader, micro and small businesses which are those with less than 20 employees and highlighted these are the sectors seeing the majority of new entrants.
It will share leadership with the current AMP Bank but operate separately and the firm will be making a $60 million investment across the next two years.
Designed to complement the current AMP Bank, it will offer small business and consumer products such as term deposits and saving accounts, powered by Starling’s Engine technology. Engine by Starling was chosen for its innovative technology platform, go-to-market expertise and ways of work, the firm said.
Alexis George, AMP chief executive, said: “The 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’s portfolio in the medium term to better position AMP for the headwinds the industry is facing when it comes to bank funding.
“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.”
While the bank’s near-term performance will be affected by current market conditions, it said it hopes diversifying AMP Bank’s funding sources thanks to this launch will have a positive impact.
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Laura Dew
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