Can a new tech focus help rescue the AMP (ASX:AMP) share price?

What can new CEO Alexis George do with a new tech focus at AMP?

| More on:
Monadelphous share price rio tinto A small rocket take off from a laptop, indicating a share price surge

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Foolish takeaway

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.

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.

More on Financial Shares

A man with long hair and tattoos holds out an EFTPOS payment machine from behind a shop counter.
Financial Shares

1 dirt-cheap ASX stock I'd buy as Aussie cash carrier looks for a lifeline

Every crisis comes with an opportunity. I reckon this payments company is in the buy zone as cash crumbles.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Financial Shares

Why is this ASX 300 stock crashing 23% today?

Shareholders of this stock have been hit with some bad news.

Read more »

Happy man working on his laptop.
Financial Shares

3 things about AFIC stock every smart investor knows

These are underrated factors about the LIC.

Read more »

Frazzled couple sitting out their kitchen table trying to figure out their finances or taxes.
Dividend Investing

Here's the AMP dividend forecast through to 2026

There is some good news for AMP shareholders.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Earnings Results

Soul Patts share price struggles on falling profits

ASX 200 investment house Soul Patts reported its half year results this morning.

Read more »

Financial Shares

Buy this ASX All Ords stock for a 15% gain and 9% dividend yield

Goldman Sachs is tipping big returns from this stock.

Read more »

Man pointing at a blue rising share price graph.
Financial Shares

Big ASX news: Macquarie share price hits new 52-week high

It's been a great day to own Macquarie shares...

Read more »

a woman wearing a dark business suit holds her hand up in a stop gesture while sitting at a desk. She has a sombre look on her face.
Financial Shares

Guess which ASX All Ords stock is suspended amid takeover rumours

Another ASX share is rumoured to have received a takeover offer.

Read more »