ANZ will retain the branding of the new platform while CMC Markets takes charge of the technology, customer service and execution for ANZ’s 500,000 retail stockbroking clients.
ANZ’s current trading platform, formerly known as E-Trade, will be decommissioned after customer migration to the new platform is complete.
As a result of the deal, CMC Markets will become Australia’s second-largest stockbroker by number of clients and trade volume, after CommSec.
The firm also expects its stockbroking business revenue to increase by around $40 million.
The deal follows similar moves a few years ago from Macquarie Group and HSBC, which offloaded operations of their online share trading platforms to Bell Direct.
“Great news” for ANZ Share Investing customers
Canstar’s General Manager for Wealth, Josh Callaghan, said he doesn’t see the competitive landscape among online stockbrokers being significantly impacted as a result of the deal.
He added that he looks forward to “seeing how the proposition grows”.
“CMC’s commitment to customer service and delivering leading edge technology means that this announcement is great news for the half a million Australians who currently use ANZ Share Investing,” Callaghan said.
“It’s also represents a compelling proposition for the rest of ANZ’s customer base, as CMC look to deliver seamless integration with ANZ’s internet banking and Grow app.”
ANZ: “Share trading remains an important customer proposition”
ANZ Managing Director Pensions and Investments Peter Mullin said ANZ will continue to manage customer deposits once they transfer to the new system.
“For now, it’s business as usual for our customers, who will access the same share trading platform they have always used,” Mullin said.
“Share trading remains an important customer proposition for ANZ, and this agreement will allow our customers to trade easily and securely when and where they want on a world class platform.
“CMC Markets has also committed to working with ANZ to bring new and innovative features to our customers.”
CMC: ANZ demonstrating “confidence” in CMC
CEO of CMC Markets, Peter Cruddas, said he was delighted to announce the transaction, which will see CMC become the “clear number two” online broker in Australia.
“ANZ is a high-quality partner with whom we have an excellent relationship and this transaction demonstrates their confidence in CMC’s technology capability, the quality of our people, and our commitment to Australia,” Cruddas said.
CMC Markets also currently provides white-label trading platforms for Bank of Queensland, Bendigo Bank and Suncorp.