AMP's digital bank bucks a trend of budget and timeline blowouts
Just over a year ago, AMP’s digital bank announcement was overshadowed by a margin crunch. Last week, it launched on time and on budget, surprising many.
If you were listing AMP's bleakest single days, 16 November 2023 would certainly make the cut.
A surprise announcement to launch a new digital small-business bank — built on a platform that would ultimately underpin its entire banking strategy — sent the share price into freefall. It was a massacre. At one point, shares were down 15%.
To be clear, doubts around the banking strategy weren’t the only factor. In the same announcement, CEO Alexis George warned of a margin crunch in the bank and ongoing cost challenges.
The new digital bank, developed in partnership with UK neobank Starling using its Engine platform, was almost overlooked — except for the scepticism around its ambitious timeline of less than two years, which was literally scoffed at.
