Virgin Money plans to launch more financial services products in addition to its new Home Loan in the wake of the departure of former chief executive, Rohan Gamble.
Gamble left the group last week amidst reports Virgin Superannuation is struggling to find new members. In Australia yesterday to launch the new low-cost, low-doc home loan, which is backed by the joint venture with Macquarie Bank, Sir Richard Branson said he planned to return to Australia in six months time to launch additional products, including basic loans. “There are other things in the financial services industry that I think are ripe for competition,” Branson said. Virgin Money launched in Australia in 2003 with its Virgin Credit Card and has since gained a 4 per cent share of the local credit card market, according to Branson. The new home loan product is financed by Macquarie which is a part owner of the group. When Macquarie took a 10 per cent share in Virgin Money in November last year the two groups said they would work together to create a range of retail products. Virgin Super’s funds are invested in Macquarie Bank’s range of index funds. “There are other areas we’ve found people would like us to compete in financial services,” Branson said. David Baxby, Virgin Management Asia Pacific chief executive officer, is acting in Gamble’s position while the company searches for a replacement. The Virgin Home Loan offers a 6.59 per cent rate and no annual, application, ongoing management or valuation fees on the first property valuation for customers who settle within three months.
Australian super funds’ collaboration with their British counterparts to change the UK policy setting is an engagement effort the first of its kind. However, as the global pension industry and financial markets become increasingly entwined, it certainly won’t be the last. IFM Investors’ David Whiteley outlines its global engagement ambitions on behalf of super funds.
Darcy SongOctober 14, 2024
