What can new CEO Alexis George do with a new tech focus at AMP?
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The AMP Ltd (ASX: AMP) share price has been under pressure in recent months. Even with a 3.6% surge last Friday, shares in the Aussie financials group are down 26.0% in 2021.
The valuation slump in recent years would be disappointing for shareholders. But could a focus on technology and innovation be the ticket to recovery for shareholders?
Can a tech focus boost the AMP share price higher?
As reported by iTnews last week, newly-appointed AMP CEO Alexis George brings with her a new focus on technology. Ms George responded to iTnews‘ questions during the company’s half-year results release by saying:
I’m certainly going to elevate the role of technology in our executive team. That’s something I’m really focused on now.
One thing I can tell you is that we need to become more ‘IT like’ as a company and that’s something I’m absolutely focused on.
The AMP share price has been struggling of late and a real push to further digitise processes appears to be top of mind for George.
AMP has previously talked of its plans to focus on technology and operational efficiency within its wealth division. That includes improving credit decision-making, approval times and digital acceleration.
The company’s financial fortunes, and arguably those of the AMP share price, now largely rest with George and her team. The newfound tech focus comes after AMP reported a 57% jump in net profit after tax to $181 million.
In its Australian wealth management segment, AMP saw assets under management jump 8% to $121.0 billion despite net cash outflows of $2.7 billion during the 6-month period.
The AMP share price climbed 3.7% on Thursday following the result before a further 3.6% to close out the week. That’s good news for shareholders who will be hoping that momentum can be maintained in the weeks and months ahead.
A new focus on technology and efficiency also coincides with a focus on cost-cutting for the financial services group. Controllable costs (excluding AMP Capital) fell 6% during the first half to $387 million.
The AMP share price has been under pressure in recent months and years. Shareholders will be hoping a new CEO with a focus on technology and streamlining processes is just what it takes to turn around the financial services and wealth management giant’s fortunes.
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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.