CMC Markets
(LSE: CMCX) announced today (Monday) it has secured an extended technology
partnership with Westpac Banking Corporation, one of Australia’s four major
banks, to provide white-label trading platforms for the institution’s retail
share trading services.
The
agreement covers Westpac Share Trading and St.George Directshares, giving CMC
access to Westpac’s customer base of approximately 13 million clients.
Integration work will take roughly 12 months to complete, with CMC expecting
the partnership to boost its Australian customer base by about 40% and increase
domestic trading volumes by approximately 45%.
CMC Markets
Stockbroking currently manages over A$90 billion in assets under administration
across more than 1.2 million trading accounts, making it Australia’s
second-largest stockbroking firm. The Westpac deal represents a significant
expansion of CMC’s retail footprint in the Australian market.
Westpac Managing Director for Private Wealth Ashley Stewart
Westpac
customers will gain access to CMC’s trading technology through branded web and
mobile platforms that integrate with the bank’s existing digital
infrastructure. The arrangement allows Westpac to maintain its customer
relationships while outsourcing the technical infrastructure to CMC.
Westpac
Managing Director for Private Wealth Ashley Stewart indicated the bank
conducted an extensive review process before selecting CMC as its preferred
technology vendor.
“CMC
is a recognized market leader in online share trading. We look forward to
extending our relationship with them to deliver innovative trading features and
a leading user experience, integrated with our online banking for more of our
customers,” Stewart said.
The company
also recently expanded its payment options globally, integrating Skrill and
Neteller alongside traditional banking methods after previously operating a
banking-only payment model.
Revenue Impact Expected
After Integration Period
Lord Peter Cruddas, CMC Markets CEO
CMC plans
to capitalize most integration costs over the 12-month implementation timeline,
with management expecting “meaningful” revenue benefits for its
Australian CMC Invest division once the platform goes live. The company said
ongoing operational costs should remain manageable given its existing
technology infrastructure and scale.
Lord Peter
Cruddas, CMC Markets Group CEO, said the partnership validates the company’s
technology capabilities and represents “a very exciting” opportunity
for growth.
“There
is no greater validation of our capabilities than when a major institution
places their trust in our technology to serve their valued customers,”
Cruddas commented.
The
transaction requires no regulatory or shareholder approvals to proceed.
In the
meantime, Apex Financial acquired a stake exceeding 3% in CMC Markets, while
the broker’s top executives received over £21 million in share-based incentives
as part of compensation packages.
Also check other Westpac-related stories:
CMC Markets
(LSE: CMCX) announced today (Monday) it has secured an extended technology
partnership with Westpac Banking Corporation, one of Australia’s four major
banks, to provide white-label trading platforms for the institution’s retail
share trading services.
The
agreement covers Westpac Share Trading and St.George Directshares, giving CMC
access to Westpac’s customer base of approximately 13 million clients.
Integration work will take roughly 12 months to complete, with CMC expecting
the partnership to boost its Australian customer base by about 40% and increase
domestic trading volumes by approximately 45%.
CMC Markets
Stockbroking currently manages over A$90 billion in assets under administration
across more than 1.2 million trading accounts, making it Australia’s
second-largest stockbroking firm. The Westpac deal represents a significant
expansion of CMC’s retail footprint in the Australian market.
Westpac Managing Director for Private Wealth Ashley Stewart
Westpac
customers will gain access to CMC’s trading technology through branded web and
mobile platforms that integrate with the bank’s existing digital
infrastructure. The arrangement allows Westpac to maintain its customer
relationships while outsourcing the technical infrastructure to CMC.
Westpac
Managing Director for Private Wealth Ashley Stewart indicated the bank
conducted an extensive review process before selecting CMC as its preferred
technology vendor.
“CMC
is a recognized market leader in online share trading. We look forward to
extending our relationship with them to deliver innovative trading features and
a leading user experience, integrated with our online banking for more of our
customers,” Stewart said.
The company
also recently expanded its payment options globally, integrating Skrill and
Neteller alongside traditional banking methods after previously operating a
banking-only payment model.
Revenue Impact Expected
After Integration Period
Lord Peter Cruddas, CMC Markets CEO
CMC plans
to capitalize most integration costs over the 12-month implementation timeline,
with management expecting “meaningful” revenue benefits for its
Australian CMC Invest division once the platform goes live. The company said
ongoing operational costs should remain manageable given its existing
technology infrastructure and scale.
Lord Peter
Cruddas, CMC Markets Group CEO, said the partnership validates the company’s
technology capabilities and represents “a very exciting” opportunity
for growth.
“There
is no greater validation of our capabilities than when a major institution
places their trust in our technology to serve their valued customers,”
Cruddas commented.
The
transaction requires no regulatory or shareholder approvals to proceed.
In the
meantime, Apex Financial acquired a stake exceeding 3% in CMC Markets, while
the broker’s top executives received over £21 million in share-based incentives
as part of compensation packages.
Also check other Westpac-related stories: