AMP has finally unveiled its new business banking proposition, and the strategy underpinning its bank earnings from here.
Portrayed as a “new bank designed and built for Australia’s under-served small and micro businesses, sole traders, side hustlers, and everyday banking customers” AMP says its new bank is “powered by the very latest banking and security technology.”
To begin with, AMP business banking is pursuing a liability strategy, with transaction and payments products launched yesterday.
“This is a really underserved and unhappy part of the market” Sean O’Malley, AMP Bank Group Executive said yesterday.
“There are some lending products to follow.
“A super important aim is to grow this side of the business; to grow the mortgage book.”
While there are a truckload of fintechs and some banks pursuing similar visions, AMP believe they will stand out.
“The brand of AMP is a great brand, and very well known. As a challenger bank we’re well placed” O’Malley said.
AMP’s business bank is built on a tech stack licenced from Engine by Starling, which supports Starling Bank in the UK.
“While it’s a UK-based business, there are lots of similarities. It has many millions of customers.
“It’s a really good and mature tech stack. It’s got lots of proof points and will scale.”
AMP say close to 90 per cent - or approximately 2.4 million - of Australian businesses are either self-employed or employ up to four people, while the majority of businesses in Australia have turnover of less than $200,000 annually.
A quarter of all businesses in Australia – close to 640,000 – have turnover of less than $50,000 annually.
AMP and AMP Bank report their full year results on Friday.