Commonwealth Bank has provided an update on its strategy to reimagine the banking experience for its retail and business customers as they increasingly adopt and use its leading digital banking services.
The launch of CommBank app v5 in May 2023 delivered more personalised content and dynamic navigation making Australia’s most popular banking app simpler, better and easier to use. The bank today outlined the customer response to date:
Matt Comyn, CEO, Commonwealth Bank, said: “The new functionality, design and addition of new services, such as CommSec share trading and our CommBank Yello customer recognition programme, have proved very popular with our record number of digitally-active customers.
“Investing in products, services and experiences that our customers want is critical to our strategy of building tomorrow’s bank today. As the trusted partner of one in three Australians and a quarter of all businesses, our clear goal is to strengthen and deepen the relationships with all of our customers. We want all customers to feel recognised and see unique value from banking with us.”
CBA also provided an update on CommBank Yello and Kit, as well as launching two new business bank services.
CommBank Yello is now one of Australia’s largest customer recognition programmes with eligibility extended to eight million customers in November 2023. An Australian banking first, CommBank Yello’s comprehensive programme provides a range of cashbacks, discounts and prize draws, as well as unique experiences, including:
The programme helps the bank provide approximately $400 million in value back to customers each year.
“CommBank Yello recognises our customers for what they do today and rewards them as they do more banking with us. It will play a central role in driving even deeper relationships by transferring more value and personalised offers back to our customers the more they bank with us,” said Comyn.
Kit, the money-mastering app for kids, built by CommBank, is now being scaled after a period of testing and development and already has 36,000 kids, parents and carers using the app. Initial usage has already shown that compared to the general population, Kit users:
Because young people are more motivated to learn when the experience is fun, Kit has now added new innovative learning techniques to its app to help teach kids new financial concepts, such as how to spot a scam. Since introducing these new techniques, the completion rate of Kit's learning content has increased from 22% to almost 80% (77%).
Digital engagement continues to increase following the introduction of profile switching in app v5, which allows retail and business customers to switch seamlessly between their personal and business accounts. Active customers using this feature are spending 20% more time in the app.
Digital services have been increasingly responsible for the opening of nearly 1,000 new business transaction accounts every day in the first quarter of FY24 (74,000 accounts between 1 July and 30 September 2023, an increase of 23% year-on-year).
As of September 2023, CBA has more than 1.3 milllion business transaction accounts, up 9% on a year ago. Almost 1,000 new merchant facilities have been opened every week in the first quarter of FY24, an increase of 25% year-on-year.
Business lending continues to outpace system growth, up 40 bps (12% year-on-year) with $2.2 billion in funding in the first quarter of FY24 alone. The Business Bank’s dedicated online lending platform, Biz Express, has seen the value of its loans funded ($676 million) double over the past 12 months and nearly two out of three small business loans are now generated through the platform.
The Business Bank has today announced:
Technology and AI developments
With more customers using digital services, CBA is scaling its technology capabilities to meet customer demand and support a new level of personalisation.
The bank’s technology is scaling to support:
AI, fraud and scams
CBA is now investing more than $750 million a year to protect customers from financial crime, cyber threats and fraud, and AI is playing an increasingly important role on this front.
As a result of this investment, the bank’s technology defences:
In AI, the bank has seen significant developments over recent months with:
As a result of this investment and focus on AI, CommBank has debuted at number one in the Evident Global AI Rankings for Asia Pacific and number six globally – the only Australian bank to rank in the top 30.
Re-disseminated by The Asian Banker