AMP embraces direct distribution
The owner of Australia’s largest network of advisers, AMP, is to take a shot at direct distribution of financial services.
The owner of Australia’s largest network of advisers, AMP, is to take a shot at direct distribution of financial services.
AMP Financial Services will launch a new distribution and service network within the next few months which will aim to directly target those customers who wish to deal directly with the financial services heavyweight.
The new business, AMP Direct, is being headed by Alain Pilot. The creation of the new arm coincides with efforts to ramp up e-business initiatives across the company. AMP has the largest adviser network in Australia, with more than 1500 advisers. Pilot says the new business stream is not a move away from the traditional method of distribution.
“Our aim is to use the new approach to complement the adviser program, while also writing new business. The approach is aimed at customers who come to us with their needs,” he says.
“Advisers can only service a limited number of people and products, so the direct approach goes hand in hand with them.”
Prakash Kirpalani, who is heading up the e-business team to provide the back office structure for the new service, says the creation of the new arm represents a complete change in focus for the group.
“Our tactic is to be transforming from a product-based environment via distribution methods into a client acquisition company,” Kirpalani says.
“The traditional adviser based distribution system has worked well but the advent of e-business will enhance the adviser’s practice. With only 1500 planners and three million customers, this is the best way to provide service around the clock.
The exact rollout date for the new services is not yet set in stone. Pilot says it is still very early in the development process and the aim at present is to get a snapshot of AMP’s products, capabilities and consumer demands.
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Jason Spits
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