More Competition For E*trade, IWL And CommSec

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By Rudi Filapek-Vandyck

IWL (IWL) management used a recent small cap presentation to argue its shares were undervalued in the light of ANZ Bank’s (ANZ) attempt to fully acquire E*trade Australia (ETR).

According to a well informed source however, both online financial service providers can expect competition to heat up as Macquarie Bank (MBL) has decided it wants its own piece of Australia’s financial retail market.

FNArena has been informed Macquarie Bank has already employed the first staff members for a new business division that will target retail investors in Australia.

Competition in the sector was already expected to increase following the decision by market leader CommSec to seek further growth outside the Commonwealth Bank (CBA) organisation. This brings CommSec in direct competition with IWL and E*trade, the numbers three and two in the sector, in its attempt to attract new retail trading accounts.

Both CommSec and Macquarie Bank have been poaching staff at E*trade Australia over the past few months.

ANZ Bank has yet to decide whether it will raise its seemingly stranded bid for E*trade Australia.

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