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Editorial director of Switzer
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Banks are always in the news, and as the Big Four account for such a significant share of the Australian stock market, most SMSFs have some exposure.

Charlie Aitken is big on banks on the back of the East Coast economic recovery and Peter Switzer is also an optimist. He likes NAB with the UK improving and ANZ is a unique Asian-exposure bet, which could have benefits for the shareholder in the medium term.

Banks are also at the forefront of technology and are making big inroads into IT and data analysis for customers. Banks that can please their customers this way are obviously worth putting on your radar. When the Big Four offerings on interest rates and fees are often so similar, many people do make decisions based on whether they can see real time data on their credit card, and other similar IT benefits.

Canstar has been watching IT developments at the Big Four for four years now, and speaking on the Switzer Sky Business show last week, Canstar’s head of research, Steve Mickenbecker, mentioned a few of his favourite developments.

“Customers expect the bank to know them online just as the old style bank manager did as you walked in,” Mickenbecker said.

“Behind the login, they shouldn’t ask you questions that they should already know the answer to.”

He said CBA’s MyWealth, a product that captures the customer’s whole relationship with the bank, goes someway towards meeting this customer demand.

CBA is also at the forefront of Tap & Pay, where you use your phone to pay for goods and services. The local market is not quite Tap & Pay ready and Samsung is the only phone that is capable, according to Mickenbecker, but CBA has also developed a patch, which can make any smart phone capable.

Roger Montgomery and chief executive officer of Montgomery Invest, David Buckland, now say that Kathmandu is at fair value but still like Seek, CSL, Challenger, Woolworths and JB Hi-Fi.

And Paul Rickard says that the US could be close to fully priced. If you’re looking to invest offshore, you might be better off looking towards a different continent.

“There is still some value offshore. We think the US is probably not fully priced but is getting expensive. There is probably better value in Europe,” he says.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.

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