CMC Markets (LSE: CMCX) announced today (Monday) it has secured an extended technology partnership with Westpac Banking Corporation, one of Australia's four major banks, to provide white-label trading platforms for the institution's retail share trading services.

The agreement covers Westpac Share Trading and St.George Directshares, giving CMC access to Westpac's customer base of approximately 13 million clients. Integration work will take roughly 12 months to complete, with CMC expecting the partnership to boost its Australian customer base by about 40% and increase domestic trading volumes by approximately 45%.

CMC Markets’ Customer Base Expansion Targets 40% Growth

CMC Markets Stockbroking currently manages over A$90 billion in assets under administration across more than 1.2 million trading accounts, making it Australia's second-largest stockbroking firm. The Westpac deal represents a significant expansion of CMC's retail footprint in the Australian market.

Westpac customers will gain access to CMC's trading technology through branded web and mobile platforms that integrate with the bank's existing digital infrastructure. The arrangement allows Westpac to maintain its customer relationships while outsourcing the technical infrastructure to CMC.

Westpac Managing Director for Private Wealth Ashley Stewart indicated the bank conducted an extensive review process before selecting CMC as its preferred technology vendor.

“CMC is a recognized market leader in online share trading. We look forward to extending our relationship with them to deliver innovative trading features and a leading user experience, integrated with our online banking for more of our customers,” Stewart said.

The company also recently expanded its payment options globally, integrating Skrill and Neteller alongside traditional banking methods after previously operating a banking-only payment model.

Revenue Impact Expected After Integration Period

CMC plans to capitalize most integration costs over the 12-month implementation timeline, with management expecting “meaningful” revenue benefits for its Australian CMC Invest division once the platform goes live. The company said ongoing operational costs should remain manageable given its existing technology infrastructure and scale.

Lord Peter Cruddas, CMC Markets Group CEO, said the partnership validates the company's technology capabilities and represents “a very exciting” opportunity for growth.

“There is no greater validation of our capabilities than when a major institution places their trust in our technology to serve their valued customers,” Cruddas commented.

The transaction requires no regulatory or shareholder approvals to proceed.

In the meantime, Apex Financial acquired a stake exceeding 3% in CMC Markets, while the broker's top executives received over £21 million in share-based incentives as part of compensation packages.

Also check other Westpac-related stories:

• Westpac's Record $12 Billion Swap Deal Leads to Court Penalty
• ASIC Fights for the Little Guy against Westpac for Hardship Notice Delays
• Westpac Faces $83 Million Fine for Several Lapses