Acquisitions on BT Financial agenda
(13 July 2012 – Australia) In a market update on Wednesday, Westpac’s BT Financial Group flagged acquisitions and increased investment as wealth management grows in importance to banks.
BT Financial chief executive Brad Cooper flagged a "land grab" as banks positioned themselves for a slice of the surging superannuation and wealth pie that is expected to hit A$6 trillion by 2030.
The pool of funds would rise by 43 percent to nearly A$10 billion by 2017, he said, and by 2019-20 superannuation contributions would increase from 9 percent to 12 percent.
"There's a land grab going on for that market share in the next period of time," Cooper said.
"What mortgage share has been to banks over the past 20 years, we think the growth in wealth will be to banks over the next 20."
In a sign that banks wanted to lock customers into longer relationships with their financial institution, he said banks were not holding on to customers once they switched from mortgage holders to high-net-worth investors.
Acquisitions were on BT's agenda, he said, highlighting how just 11 large players controlled 75 percent of the market.
Commonwealth Bank of Australia (CBA) recently bought independent accountancy and financial advice company Count Financial in a near A$400 million deal while AMP bought AXA's regional business and NAB acquired Aviva.
The pool of funds would rise by 43 percent to nearly A$10 billion by 2017, he said, and by 2019-20 superannuation contributions would increase from 9 percent to 12 percent.
"There's a land grab going on for that market share in the next period of time," Cooper said.
"What mortgage share has been to banks over the past 20 years, we think the growth in wealth will be to banks over the next 20."
In a sign that banks wanted to lock customers into longer relationships with their financial institution, he said banks were not holding on to customers once they switched from mortgage holders to high-net-worth investors.
Acquisitions were on BT's agenda, he said, highlighting how just 11 large players controlled 75 percent of the market.
Commonwealth Bank of Australia (CBA) recently bought independent accountancy and financial advice company Count Financial in a near A$400 million deal while AMP bought AXA's regional business and NAB acquired Aviva.