AMP is planning to reduce its superannuation products and investment options as part of its bid to regain customer trust post-royal commission, with chief executive Francesco De Ferrari admitting the bank had shortcomings in an open letter to customers.
AMP is aiming to simplify its super offerings, with more details to be published in the coming months.
The update comes following the company’s wealth management arm posting net cash outflows of $1.8 billion in the first quarter, an almost 10-fold increase on outflows of $200 million the year before.
Mr De Ferrari said at the time of the update that the bank would work on modernising its products to place it in a winning position on the market.
AMP has also followed suit of the big four in slashing ATM fees, with customers to receive rebates from 1 June. It also launched a new four-month introductory interest rate of 3 per cent per annum for its AMP Saver Account, followed by an ongoing rate of 2.1 per cent.
“We made many mistakes and fell short of the standards expected of us,” Mr De Ferrari said in his open letter.
“We know we have a job to do to earn back your trust and confidence. Going forward, we are refocusing on our customers and the continual improvement of our products and services.”
The bank earlier this year made a series of fee reductions on its MyNorth wrap platform of up to 20 basis points, which it said would benefit more than 85,000 customers. AMP additionally diminished fees for around 600,000 customers of its MySuper products in 2018.
Mr De Ferrari also made note of the changes AMP has made including enhancing its whistleblower program; the appointment of four new board members, a new chairman and chief executive; and enforcing a new code of conduct.
The $3.3 billion sale of AMP’s life insurance business to Resolution Life was reported to still be taking place in the second half.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].