Banks in Australia Look to Superannuation for Profit Growth

Australia’s four biggest banks are looking into superannuation assets for profits that should help see through its growth for the next 20 years.

BT Financial Group’s Brad Cooper showed an analysis of this, suggesting that assets from this fund are projected to grow by at least $6 trillion by year 2030.

According to Cooper, this is similar to what has been going about mortgage share in the last 20 years. But since a new generation of families is no longer investing in property and residence, and there’s a lack of new mortgage, the challenge with banks now is to look into superannuation assets to deliver profit.

The key, according to the analysis, is to increase superannuation contributions by the year 2013 and encourage members to invest their retirement savings to develop the corporate bond market.

Currently, employers share is at nine percent. The recommendation is to bring this to 12 percent.

The analysis also puts wealth management in the forefront, expanding services offered by traditional banking, since many individuals now have superannuation, bank accounts, credit cards and insurance.

Banks today have been acquiring and merging with financial institutions and can make use of this relationship to boost new business.

Industry analysts say that the idea is that clients would want to maximize the financial services to address their banking and wealth needs. Providing clients financial advice, from owning a home, to life insurance and then to retirement, is something that all banks can look into for solutions.