Unsold: BT Panorama – the only remaining bank-owned platform

In the end, BT Panorama could not be sold for the price being sought by Westpac and ends up being the only investment platform still owned by a major bank.

After nearly four years with Panorama on the sales block, Westpac yesterday informed the Australian Securities Exchange (ASX) that it would be retaining ownership of the platform – something which puts an end to speculation that it might end up in the hands of AMP Limited, Colonial First State or even Mercer.

Given the many millions of dollars invested by Westpac in the development of BT Panorama the platform was never going to generate a great return on the bank’s overall investment. Now it must stay and pay its way.

Interestingly, the announcement by the Bank that it would be retaining Panorama on the books came at the same time as BT announced that its chief strategy and product officer, Kathy Vincent, would be departing. Vincent has taken up a role at Australian Retirement Trust (ART).

For BT chief executive, Matt Rady the confirmation that Westpac would retain ownership means he can focus on developing what has become a very focused platform business.

Interviewed by Financial Newswire, Rady acknowledged that Panorama had been developed at a time when Westpac and BT accounted for over 1,000 financial advisers across a number licenses, but made clear that it had always been primarily aimed at independent financial advisers (IFAs).

He also noted that, today, around half of Australian advisers us BT platforms – BT Panorama or Asgard.

But the bottom line is that Panorama remains owned by a major bank which has committed to continuing to invest in the business with its announcement to the Australian Securities Exchange referencing the development of features to improve the adviser and investor experience.

However, also worth noting is that the bank used that ASX announcement to declare that it had become a much simpler and stronger bank, announcing 10 business divestments with nine completed.

Those divestments were meant to include Panorama but in the end amounted to to BT Personal and Corporate Super, Advance Asset Management, General Insurance, Life Insurance, Lenders Mortgage Insurance, Motor Vehicle Dealer Finance and Novated Leasing, Strategic Alliances ‘Vendor Finance”, New Zealand Life Insurance, New Zealand Wealth Advisory and BT Private Portfolio Management.

For Rady, the BT platforms business remains a large technology-focused business requiring a substantial team.

What is more, he sees continuing major bank ownership as being an advantage in a market increasingly focused on data security.

“Westpac’s technology capability and security provides advisers and investors with additional peace of mind,” he said.