Melbourne APEC Finance Centre

Victoria’s financial services sector operates in a highly developed and diversified environment working across a range of industry sub-sectors, including retail and investment banking, funds management and superannuation, stock broking and insurance.

In addition to this, Victoria is home to large international banks and financial institutions, national regulatory authorities and industry associations.

The 2008-09 Global Competitveness Report ranked the soundness of Australia's banking sector 4th in the world, out of 134 countries.

Around 75 percent of Australia's licensed banks operate in Melbourne managing 35 percent of the nation's banking assets.

Victoria hosts in excess of 40 banks (including representative offices), and amongst the largest are National Australia Bank and ANZ Bank which have their headquarters in Melbourne. There are circa 50 brokerages and investment banks including one of Australia’s largest broking houses, Goldman Sachs - JB Were.

Traditional banks have transformed their businesses into service institutions through the adoption of a ‘bancassurance’ strategy and now operate across a broad range of sub-sectors including loans and deposits, funds management and general and life insurance, and financial planning.

As banks move from margin based to fee based earnings, efficient and cost effective delivery of products dominates banking business strategy.

Source: VIC GIV SRAT, Invest Victoria, ABS

Australia is the largest funds management market in the Asia-Pacific region and the 4th largest in the world, and has the highest number of managed funds per capita in the world and assets under management of over AUD 1.3 trillion.

Victoria is host to numerous insurance and superannuation fund companies, including AXA, AIG, Mercer and Vanguard Investments whose Australian operations are based in Melbourne.

The Victorian Funds Management Corporation, seven out of the top ten industry pension funds, and the Federal Government's Future Fund are all managed out of Melbourne.

Based on the large volume of funds under management in industry, the public sector and corporate super funds, Victoria is strategically placed to provide services to the nation and Asia Pacific region.

Continued growth in the Australian asset pool has created strong demand for international fund products. Foreign assets held in December 2007 were 21 percent of total Australian investment funds, up from 13 percent in 1992.

The Australian funds market is projected to grow 11 percent per annum over the next decade.

Source: VIC GIV SRAT, DIISR, Invest Victoria

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