Margin lending has continued to grab the interest and attention of the financial services industry withJDVannouncing the rollout of a margin lending back office alliance with the BankMacquarie, theBendigo Banklaunching its first margin lending product andSt Georgeenhancing its own product line.
The deal between JDV – the technology and outsourcing arm of listed company Hartleys – and Macquarie will involve the financial services software provider licensing a customised margin lending back office system to the Bank.
JDV head of technology Campbell Johnston says the licence would enable Macquarie to enhance its margin lending service, and comes off the back of the existing relationship between the two groups.
So far that relationship involves JDV providing Macquarie with a customised version of its broking systems and software, which have been designed to tie in with the new margin lending system.
The Bendigo Bank has launched its margin lending product using the Sandhurst Industrial Share Fund which is managed by Investors Mutual on behalf of the bank.
The new product will allow investors to borrow to a lending ratio of 70 per cent either using existing or new investments in the fund, with the bank also approving a range of shares for use with the margin loan.
The minimum loan amount is $40,000 with the maximum varying dependent on clients, and margin calls set at 105 per cent of the loan amount. Financial planners introducing clients to the product will receive a trail brokerage.
In further margin lending news, St.George Margin Lending says financial planners and stockbrokers will now be able to access their clients’ margin lending details online.
Head of margin lending with St George, Andrew Black, says the addition to the services is the result of planners and brokers pushing for access to the details which will now be available around the clock via a password protected system.
The addition of internet account access is the first product enhancement since St.George Margin Lending launched the Planner Assist software package which provides planners and advisers with practice management materials including customer education, presentations, calculators, simulators and marketing strategies.
