AMP not serious about banking

AMP has welched on its commitment to use its merger with Axa to develop a banking business. Yesterday the wealth management company announced its post-merger business structure and leadership team.

Banking has been tossed into the wealth management product division, although this is consistent with past practice.

In January, when AMP and Axa issued explanatory memoranda for their merger, big claims were made about the opportunity to develop the banking business.

The Axa explanatory memorandum said: "AMP expects the merged group to provide improved retail investment platforms, as well as offering competitive bank deposit and home mortgage products to more Australians."

AMP chairman Peter Mason said: "As securitisation markets recover and more funding becomes available our aim will also be to use the strengths of the merged businesses to help provide consumers with more competition and choice in the banking market."

If the group was serious about pursuing a bancassurance model the bank would operate as a stand-alone division. Instead, it forms part of the banking and wealth management products division, under Rob Caprioli.

AMP Bank has a 0.9 per cent share of the mortgage market and a 0.3 per cent share of household deposits. While growth rates in home loans at the bank have been greater than system over the last six to 12 months, this is a catch-up after a period of declining market share between late 2009 and early 2010.

But at least Caprioli is a banker. He joined AMP from Westpac last year.