AMP cuts back banking arm

AMP will radically downsize its AMP Banking arm following a review of the group's activities and costs. AMP Banking will continue to offer mortgage loans and retail deposits to Australian customers, though it will source loan finance through securitisation like non-bank lenders. It will also possibly outsource loan servicing and set-up processes to external parties such as mortgage brokers.

The group will stop issuing credit cards and commercial property finance in Australia and New Zealand and all banking products in the UK and New Zealand. Instead it will offer targeted products in the UK and NZ in alliances with other companies. Employee numbers in AMP Banking are expected to be slashed to 100 from the current 600.

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