40% of AMP book is 3+ months ahead of schedule

According to the bank’s most recent financial results (for the financial year 2023, ended 31 December 2023), the 90-day arrears level doubled over FY23 to 0.62 per cent, while 30-day arrears level rose from 0.8 per cent to 1.29 per cent over the financial year.

However, AMP stated that mortgages in 90-plus day arrears remained relatively low despite the rise, comparing it to the industry average of 0.7 per cent and that borrowers are largely still ahead on their repayment schedules.

Speaking with The Adviser, Paul Herbert, head of intermediary distribution and finance at AMP, said: ”Reassuringly, we continue to have very low numbers of AMP Bank home loan customers in arrears, with about 40 per cent of AMP Bank’s mortgage book remaining more than three months ahead of schedule on repayments.”

AMP’s head of intermediary distribution said the bank was “proactively” assisting borrowers in financial stress.

“We proactively reach out to customers who may be at risk of financial stress and have a dedicated hardship team available for those concerned about their financial position to talk through options, for example, temporary relief arrangements, interest rate changes, referral to expert assistance with budgeting, and as appropriate amendments to their loans or restructuring,” he said.

Herbert also noted that the bank was working closely with brokers to support their customers and was seeing broker satisfaction levels increase over the year.

According to AMP, its broker satisfaction rating increased from 69 per cent to 84 per cent in FY23.

The bank has been focused on “deepening” its relationship with brokers and has simplified its policies and processes through its broker experience team, according to Herbert.

Herbert said the bank was also working on new initiatives to further “enhance” the broker experience, with a particular focus on “shifting the dial when it comes to speed and transparency for brokers.”

“We have delivered this through targeted broker training, a clear value proposition aligned to our policies, procedures and pricing, and ensuring a consistent service experience. We’ve been focused on deepening our key relationships with brokers, supported by simplification of policy and process and through our broker experience team,” he added.

Looking to the future, Herbert said that the bank would continue to invest in the broker channel.

“Investing in broker experience and making it easier for brokers to do business with AMP Bank is a key focus for us,” he said.

The bank has also been investing in new technology offerings, announcing last year that it was set to launch a new digital banking offering for small-business banking in 1Q25.

Built using Starling’s ‘Engine’ technology platform, the new digital offer will target sole traders and small businesses with one to 20 employees and offer transaction and savings accounts.

It will be designed to provide tailored functionality and features to help small-business owners – including brokers – manage their finances ‘on the go’ from their mobile phones.

According to Herbert, while the new digital banking division won’t focus on residential lending, AMP Bank is still “committed to ongoing investment in [its] existing lending capabilities”.

[Related: Brokers reveal how borrowers are faring with arrears]