Depositing Financial Mastery
Depositing Financial Mastery AMP Bank has worked diligently to become a stalwart of Australia’s financial landscape. Sean O’Malley, CEO, tells us more about the company’s innovation, partnerships, digital banking, and unwavering commitment to helping Australians achieve their financial goals Writer: Ed Budds | Project Manager: Joshua Mann
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ransformation has been the consistent theme throughout my career, and that was one of the reasons I joined AMP Bank. It is one of Australia’s oldest and most recognised organisations, but it was also clear that there was a significant opportunity to transform the business and position it for the future.” The opening salvo from Sean O’Malley, CEO of AMP Bank, sets the scene for his last six years in the role, where his focus has been on transformation that improves customer experiences, strengthens the business, and improves how the company delivers banking for Australian customers. “My background in technology, transformation, and people leadership 2 | APAC Outlook Issue 82
has shaped how I approach both my role and the business today,” he adds. What initially attracted O’Malley to financial services was the opportunity to make a genuine difference in people’s lives. He passionately believes banking can help individuals, families, and businesses achieve their goals, whether that is buying a home, building wealth through property, starting a small business, or running and growing an existing business. “Banking in Australia is a great industry to be part of – whether it is supporting small businesses or helping people create wealth through property, banking plays an important role in helping customers achieve their ambitions,” he enthuses.
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Sean O’Malley, CEO
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THE FUTURE OF FINANCE Part of what O’Malley was attracted to regarding the finance industry is how ambitious yet challenging it remains across the nation – Australia has an incredibly competitive banking market and a digitally aware and astute population. “When I compare Australian banking with markets elsewhere, the standard of digital banking, and the standard customers accept is very high. Banks have generally done a good job of responding to those expectations, although there is still more to do,” he sets out. However, small business banking is an important exception. “We saw a gap in the market when we started AMP Bank GO, and I
continue to see a shortage of great digital services for small businesses,” O’Malley adds. More broadly, digital banking needs to become more integrated into the everyday experiences and journeys of small businesses and Australians. Undoubtedly, artificial intelligence (AI) will play a major role in the future of banking – changing how consumers and businesses interact with their bank and what they expect from it, whilst also having the potential to level the playing field by enabling smaller banks to compete more effectively with larger institutions in delivering great customer service. “I think it’s essential that Australia continues to have smaller, challenger
banks. It would be a bad outcome if we see more smaller banks unable to compete and ultimately disappear – sustainable competition is required for customers to continue to receive great services,” O’Malley predicts.
TRANSFORMATIVE SOLUTIONS Historically, AMP Bank has been a specialist home lender, and for nearly three decades, it has helped Australians buy their own homes and create wealth through property investment. This remains a very important part of who the business is today. “Over the past few years, however, we have deliberately broadened our ambition. We launched AMP Bank GO, a digital-only banking division built in
CAN YOU EXPLAIN THE IMPORTANCE OF PARTNERS AND VENDORS TO AMP BANK? SEAN O’MALLEY, CEO: “Partnerships are essential to us winning. As a challenger bank in a highly competitive market, our ability to work with the right firms, wherever they sit in the value chain, is fundamental to our ability to deliver for customers. “For me, the defining qualities of a great partner are shared aspiration, culture, and beliefs. Whether it is Engine by Starling, Simpology, Genpact, Mastercard, Helia, or our aggregator and broker partners, the most important distinction between a true partner and a supplier is alignment around what we are trying to achieve together. “We don’t always get everything right, and strong partnerships require honest and sometimes brave conversations. Those conversations must be two-way, transparent, and open. They allow us to learn from one another and to be better together than either organisation could be individually. “One of the things I most commonly ask our partners is to be brave and tell us where we could be better. In that spirit of openness and candour, we improve and deliver a better service for our customers.”
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particularly proud is our spirit and capability for innovation – we built and launched a whole new digital division within 12 months, and we have continued to innovate in our products, customer experiences, and ways of working,” O’Malley prides. AMP Bank combines the trust and stability of an established financial institution with the mindset and agility of a challenger bank, benefiting from its long heritage while deliberately fostering a culture of innovation, change, and transformation. What differentiates the business is its willingness to challenge traditional assumptions about banking and to solve genuine customer problems. “AMP Bank GO is a strong example – we built an entirely new digital division at start-up pace inside an established bank,” he continues. Meanwhile, Equity Flex is another PHOTOGRAPHY © ADAM MORK
“Ultimately, the greatest point of difference is not any single product – it is our ability to continue to innovate and evolve in ways that help customers achieve their goals, whether that is buying a first home, starting a business, or creating wealth through property” – S E A N O ’ M A L L E Y, C E O , A M P B A N K
partnership with Engine by Starling, serving small business and personal customers,” informs O’Malley. Moreover, as a digital-only bank, customers engage with AMP Bank directly through digital channels or through partners such as mortgage brokers rather than through a
traditional branch network. “I often describe our position as a new digital start-up bank, AMP Bank GO, operating inside AMP Bank, which has been running for almost 30 years, within a wealth manager with a 177year heritage,” he furthers. “Additionally, what makes me
Helia – Australia’s risk partner for home lending Home ownership can provide a strong foundation for long-term financial wellbeing. That’s why Helia partners with lenders to manage risk and help make home ownership accessible to more people. For more than 60 years, we have supported lenders through solutions such as Lenders Mortgage Insurance (LMI), which protects the lender if a borrower is unable to repay their home loan. Building on our heritage as Australia’s first LMI provider, we help support a strong and sustainable home lending market. Whether someone is entering the market for the first time, buying an investment property or moving home, we help our customers safely provide loans to people with smaller deposits. Since 2010, we have helped more than 1.2 million people achieve home ownership. Our vision is to be Australia’s most trusted risk partner for home lending. This focus is reflected in the collaborative way we work with our customers, combining risk expertise, market knowledge and practical
solutions to support confident lending decisions. One of our longest-standing partnerships is with AMP Bank. For more than 20 years, we have built a relationship based on trust, collaboration and a shared commitment to supporting home buyers across the different stages of property ownership. Throughout the relationship, we have contributed our expertise, market insights and risk perspectives to help AMP Bank respond to changing economic conditions, customer expectations and developments in the Australian lending market. Our partnership has continued to evolve as we have collectively adapted to new opportunities and challenges across the home lending sector. Our partnership with AMP Bank brings together the bank’s expertise and
understanding of its customers with our insights into borrower behaviour, market conditions and emerging risks. These complementary perspectives help inform decision-making and lending strategies across different customer segments. Our operations are designed to manage risk while simplifying the lending journey and supporting faster lending decisions. These capabilities help AMP Bank respond to customer needs while maintaining appropriate controls and supporting responsible lending outcomes. By enabling lending with a smaller deposit, we can help customers purchase property sooner while providing AMP Bank with an additional layer of credit risk protection. We also work closely with AMP Bank to interpret and respond to changes in lending policy, regulation and industry expectations. By sharing knowledge and maintaining an open dialogue, we can identify potential impacts early and collectively consider how best to respond. Our relationship with AMP Bank demonstrates the value of long-term collaboration. By combining shared expertise with the ability to adapt, we support lender growth, strengthen the lending experience and ultimately help more people accelerate financial wellbeing through home ownership.
Accelerating financial wellbeing through home ownership. Australia’s home lending risk partner for more than 60 years.
Learn more about Helia at helia.com.au
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Broker platform launch panel
example of the company developing a solution around the needs of property investors. Equity Flex is a 40-year loan, with 10 years of interest-only, aimed at investors and helping them manage their cash flows, as well as lowering their monthly repayments. “Ultimately, the greatest point of difference is not any single product – it is our ability to continue to innovate and evolve in ways that help customers achieve their goals, whether that is buying a first home, starting a business, or creating wealth through property,” O’Malley excites. 8 | APAC Outlook Issue 82
AMP BANK GO AMP Bank GO is a major transformation for AMP Bank, and it is not a project that is completed once launched – it is the continual evolution of the company’s offering. “I am extraordinarily proud that we built and launched an entirely new digital division within 12 months of board approval,” O’Malley notes. The idea began about 18 months prior when AMP Bank identified a gap in how small businesses, particularly micro-businesses and sole traders, were being served by Australian banks.
“Our research repeatedly told us that small businesses did not believe their banks understood them or genuinely cared about them. That became the cornerstone of AMP Bank GO: making banking more accessible and better for the smallest of small businesses,” he recalls. The company also wanted AMP Bank GO to deliver more open, transparent, and fairer banking, having witnessed customers being asked to navigate complex conditions to access attractive savings rates, including transaction requirements, deposit conditions, and introductory rates.
Cotality sees the property ecosystem from every angle — above, below, and beyond the limits of what’s visible. The property market is complex, and every property has a deeper story to tell. Cotality powers the industry across Australia and New Zealand with comprehensive data, platforms and solutions that help organisations see that story more clearly. By delivering deep property intelligence across every stage of the property lifecycle, we enable decisionmakers across the property ecosystem to identify opportunities, manage risk, support customers and make critical decisions with confidence.
cotality.com/au
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“We deliberately chose a ‘what you see is what you get’ approach. Customers should not have to jump through hoops or rely on small print to understand the value they are receiving,” O’Malley follows. Today, around 18 months after going live, AMP Bank GO serves both small business and personal customers. The service initially launched with transaction and payment capabilities, then added overdrafts, savings, and fixed-term savings propositions. Its future will be shaped by customer feedback and emerging gaps in the market rather than by a fixed roadmap, and partnerships will remain essential because the needs of small businesses and personal customers will not be met by banks alone. “I am excited by how AMP Bank GO has scaled so far, but even more 10 | APAC Outlook Issue 82
“Products will change, but a strong culture and capability for innovation allow us to keep adapting to what customers need” – S E A N O ’ M A L L E Y, C E O , A M P B A N K
excited by what is still to come,” he enthralls.
PROUD TO BE DIGITAL AMP Bank has been branchless since its inception almost 30 years ago – an operating model choice made by the founders, and one that has been built on and strengthened ever since. Today, both AMP Bank and AMP Bank GO continue to operate as digital banks, whether customers deal with the company directly or through a broker.
“Not having the challenges and costs of a legacy branch network is a significant advantage as it allows us to focus investment and attention on the end-to-end customer journey. It also forces us to ensure that our journeys are genuinely digital, rather than only partly digital before defaulting to a face-to-face process,” O’Malley divulges. The company isn’t the only digital bank but remains one of the few that is digital-only. This distinction matters as digital-only does not mean
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Team planning day
relationships are less important. “Our mortgage brokers and other partners remain central to how we serve customers and our role is to give them strong digital journeys and technology that support however they choose to work with customers, whether face-to-face or digitally.” Moreover, innovation is essential to being a challenger bank. “It is a capability we have deliberately developed within AMP Bank and one that is extraordinarily important to us, representing one part of our broader organisational 12 | APAC Outlook Issue 82
capability,” says O’Malley. Over the past 12 months, examples include Equity Flex, with a 40-year loan term designed to support investor borrowing capacity and cash flow, a 10-year interest-only option, and the company’s re-entry into lending to self-managed superfunds with a refreshed approach. “Meanwhile, AMP Bank GO takes innovation beyond an individual product and into the overall proposition. We were also the first Australian bank to deliver a numberless card, in partnership with
Mastercard,” he adds. Whilst product solutions are important, the most valuable capability is the ability to keep innovating and evolving in a way that helps customers achieve their goals. “Products will change, but a strong culture and capability for innovation allow us to keep adapting to what customers need,” O’Malley assures.
FUTURE STRATEGY Moving forward, the company is very clear on its strategy – it is prioritising helping more Australians, whether
PHOTOGRAPHY © ADAM MORK
by scaling AMP Bank GO, helping more people create wealth through property, or, for the broader AMP Group, helping more people prepare for and live their best retirement. “Within the bank, scaling AMP Bank GO is our number one priority. We have delivered strongly so far, but there is much more to do, especially in helping more small businesses with banking that is simple, transparent, and designed around their needs,” O’Malley acclaims. “Our second priority is to continue to challenge ourselves and deliver
innovation. That is not about one product – it is a capability that allows us to keep identifying customer needs and bringing better solutions to market. “The third priority is people. I want to ensure we continue to create an environment where people can flourish and achieve extraordinary things beyond what they previously thought possible,” he states. O’Malley knows that these goals are achieved together, and that AMP Bank will deliver great things for its customers.
Tel: 133 888 info@ampbanking.com.au
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Tel: 133 888 info@ampbanking.com.au amp.com.au
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