Big banks in Virgin territory
Virgin MoneyAustralia, the financial services arm of the Virgin Group, has revealed that it will not rule out the possibility of local acquisitions despite plans to rescue struggling British mortgage lender Northern Rock.
Virgin Money Australia chief executive David Wakeley said yesterday that the company’s ambition for financial services is to provide customers with great value for money products and services in competition with large financial institutions.
“Housing affordability is a hot topic right now, with home owners feeling the heat from rising interest rates. Now more than ever the market needs competition to keep the big banks on their toes, otherwise we’re likely to see interest rates skyrocket,” he said.
Virgin Money, which is backed financially by the Virgin Group and Macquarie Bank, launched in Australia in 2003 with plans to shake up financial services, and the company’s assets are growing rapidly. It now has credit card assets of almost $2 billion, and intends to add more scale to the business, according to Wakeley, who said Virgin Money has access to deep pockets.
“While there is talk about market consolidation as a result of economic conditions and the banks keeping a watchful eye on the smaller non-bank players, it’s a different story for heavy-hitters like Virgin turning the tables on the big banks,” he said.
Should the Virgin Group’s offer to rescue Northern Rock go ahead, Sir Richard Branson is expected to fold the British bank’s branches and assets into Virgin Money.
Recommended for you
Financial advisers are reminded to ensure their CPD is up to date with the Financial Services and Credit Panel making its second determination in a week after an adviser failed to meet the requirements.
An adviser has received a written reprimand from the Financial Services and Credit Panel after failing to meet his CPD requirements, the panel’s first action since June.
While efficiency remains a top priority for Australian advisers, State Street has revealed the profession is now juggling this desire with the need to maintain personalisation of its service offering.
A possible acquisition of data provider Iress is becoming a greater likelihood after the firm announced it is engaging with multiple interested parties.
