Westpac activates growth plan

Westpacchief executive officer David Morgan has not ruled out further purchases as part of its wealth management strategy, describing its recent acquisition of Rothschild Australia Asset Management as “a building block and springboard for growth”.

Morgan described the deal as Westpac’s “entrée into the independent financial adviser (IFA) network”, and says it will leverage off Rothschild’s expertise in the distribution of products to financial planners.

“[The acquisition] fills gaps in our distribution reach, delivers better scale and capabilities at the manufacturing and investment management end, and allows us to build on Rothschild’s superior service model,” he says.

Another area of focus for Westpac going forward will be the ability of its master trust platform to remain competitive, Morgan says.

“We have a master trust platform. But it does not have all the capability and functionality we want to expand in wealth management and the tools to be attractive to the IFA network,” he says.

Morgan says Westpac is currently considering how it can overcome these challenges in the future, and will have to make a decision on whether to build or acquire its own master trust or badge the master trust of an existing platform provider.