AMP to apply for banking licence

AMP's George Trumbull, speaking on Channel Nine's Business Sunday program foreshadowed a move to apply for a banking license prior to issuing a prospectus in March next year.

AMP has tried on two previous occasions to make it in the banking field, once as Chase AMP in the eighties, and again in conjunction with Westpac in the early nineties

AMP's Priority One is alone in offering an $8 rebate to mortgage customers who make their monthly repayments on time, and it will be interesting to see their attitude to transaction fees once they have a branch network and high transaction levels to contend with.

If fees are not a part of AMP's strategy it will provide some real competition and a point of difference for the new bank.