CMC Markets plc (LON:CMCX), CMC Markets Stockbroking has been selected as the preferred vendor extending its strategic long-term technology and platform relationship with Westpac Banking Corporation (WBC.ASX), one of Australia’s largest banking institutions. This arrangement relates to Westpac’s online share trading services, Westpac Share Trading (WST) and St.George Directshares (DS).
Following an integration period, CMC will provide Westpac and St.George share trading customers with access to leading technology and execution via branded web and mobile white label platforms, including integration with the Bank’s current technology offering. Integration is expected to take approximately 12 months, with the associated costs expected to be largely capitalised with revenue upside proving meaningful to our Australian CMC Invest business.
On an ongoing basis, the cost impact is expected to be incremental as the Group leverages existing technology, scale and experience to deliver a best-in-class service to the Bank and its valued customers.
Westpac and St.George customers will gain access to CMC’s award-winning trading technology across mobile and desktop platforms, with access to global markets, comprehensive market analysis, trading tools and all future roadmap deliveries.
As Australia’s second-largest stockbroking firm, CMC Markets Stockbroking manages over A$90 billion in assets under administration and serves more than 1.2 million share trading accounts. This new arrangement will result in a meaningful increase in CMC’s market presence which will see the business post integration servicing circa 40% more customers with increased domestic volumes of approximately 45%.
The transaction is not subject to any regulatory or shareholder approval.
Overview of Westpac Banking Corporation
Westpac ranks as one of Australia’s largest banking institutions, serving approximately 13 million customers.
CMC Markets Group CEO, Lord Peter Cruddas, commented:
“This is a significant and exciting opportunity for CMC Markets and continues our strong record in Australia in winning major technology partnerships with major banks. This is testament to our proven success in working with a range of major banking partners. There is no greater validation of our capabilities than when a major institution places their trust in our technology to serve their valued customers. We are committed to delivering investors a market leading user experience and this exciting arrangement is a result of our best-in-class technology, breadth of products and our ambitious roadmap to continue to expand and innovate.
Our focus now turns to supporting Westpac and St.George customers, furthering our relationship with Westpac to ensure a smooth and successful future.
This is a very exciting for the Group, and I am excited about taking the Bank’s online trading experience to the next level and beyond.”
Westpac Managing Director, Private Wealth, Ashley Stewart, commented:
“Following an extensive strategic review and tender process, we’ve selected CMC Markets Stockbroking as our preferred platform supplier for Westpac’s online share trading services which includes Westpac Share Trading and St.George Directshares.
CMC is a recognised 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.”
