National Australia Bank (NAB) wealth management business MLC has signalled job cuts as it consolidates the back-office operations of its MasterKey Custom and Navigator platforms.
“The consolidation of our back-office functions will make us more efficient and reduce complexity in our business and so will improve the overall performance of the platforms,” an MLC & NAB Wealth spokesperson said.
“We expect this transition will take around 12 months and while there are no immediate job impacts, there will be some redundancies throughout the course of the transition.”
Integrating the back-office functions of both platforms would allow financial planners who used MasterKey Custom to have improved functionality and more features, the spokesperson said.
These include the ability to construct and manage model portfolios, improved adviser and client online transaction capability and integrated margin lending.
“Consolidating the back-office operations of these platforms makes sense from an adviser, customer and business perspective,” the spokesperson said.
“Advisers and customers will benefit through improved functionality and access to additional product features and MLC will benefit from reduced complexity and streamlined systems in our back-office operations.”
When asked if there were plans to add Navigator’s separately managed accounts to MasterKey Custom, the spokesperson said: “MLC is continuing to explore how best to leverage the innovation and capability that resides within both MasterKey Custom and Navigator for the benefit of advisers and their clients.”
In July, MLC flagged that it was gearing up to launch a new insurance product by early next year that exploited the technology and service capability obtained through the organisation’s acquisition of Aviva.
“What we’re trying to do with that new product is really listen to advisers about what they want out of the bringing together of Aviva and MLC from a product perspective,” MLC & NAB Wealth retail insurance operations general manager Frank Lombardo said.
“Aviva operated predominantly in the independent financial adviser space and they’ve got strong views about what needs to be in that product.
“Equally, MLC has had a really great philosophy around value, profitability and the upgrade guarantee around benefits and features. So we’re looking to maximise all that and make sure that what we end up going to market with is a pretty compelling offer whether you’re tied, aligned or an IFA.”
The new insurance product will be a package of death, income protection and trauma cover.
“Basically we’re really looking at the two product ranges and figuring out what the best product that we could get to market will look like, but doing that through talking to advisers,” Lombardo said.
“So it’s all about listening to them and we’re taking all their feedback into consideration now and we’ll finalise the product in a couple of months.”
MLC is also looking to migrate all existing customers off the current MLC systems and onto the Aviva platform by the end of 2011.
“So in that point in time all new business and all of our in-force business will be sitting on the Aviva technology platform,” Lombardo said.
NAB in 2009 purchased Aviva Australia Holdings’ wealth management business, including its life insurance operations and investment platform Navigator for $825 million.
