The Commonwealth Bank’s chief executive has outlined his plans for the big bank which centre on the customer and rebuilding the public’s trust.
In his first major speech since becoming chief executive Matt Comyn told attendees of the Trans-Tasman Business Circle luncheon that the bank had to earn trust back from customers.
Mr Comyn said that CBA was opened with a clear mandate with three key elements, it was to be a bank for all Australians, a bank for businesses and a bank for the country.
“I think those three critical elements are just as important today as they were then, and in effect being a really a guiding light to what the organisation should and has tried to stand for over more than 100 years,” he said.
It is no secret that trust in all the big banks has eroded from the Royal Commission fallout with consumer satisfaction only just returning to pre-Royal Commission levels.
Mr Comyn said that the bank had to be trustworthy as an organisation and as individuals and part of that was being capable, transparent and to deliver better outcomes.
“What we are really going to be measured on over time is going to be our consistency: of intent, our consistency of actions, and importantly our consistency of outcomes,” he said.
CBA planned to invest over $5 billion over the next five years to add real value to customers said Mr Comyn.
“Much of that work will go into investments directly in technology, making either our systems more safe, sound and secure, more reliable, but importantly in many of the ways that I spoke about today where we can add real value and improve the outcomes for our customers,” he said.
Much of Mr Comyn’s speech reiterated the three key principles on which CBA was founded and he said it was one that they needed to remember.
“We do expect that over time the shape and size of the organisation will adjust to ensure that we retain the most important aspects of what the Commonwealth Bank is, and that we are able to deliver a bank that is worthy of the customers we serve, and one that is able to deliver on the very simple but clear mandate for which we were established.
Alongside the more holistic aspects of his address, Mr Comyn also announced the relaunch of the CBA banking app and a new mortgage option.
The CBA banking app currently used by more than 5.3 million users will be relaunched to offer a more personalised experience including details about upcoming credit card payments, month on month spending comparisons and entitlements.
“It will be an app that is for every one of our customers. We want it to really to feel like it's your app.
“When you log into the app it will be personalised and it will show on the home screen the most relevant thing for you,” he said.
Despite CBA’s digital innovation Mr Comyn revealed that one ‘old-school’ product that the bank would not get rid of was the passbook which still had 400,000 loyal customers.
“One of the verbatims which always sticks in my mind, from one of our customers which was: ‘I hope I die before the Commonwealth Bank takes away my passbook.
“When you’ve got customers preferencing death over the cessation of a product or service, it feels like a pretty difficult area to go after," said Mr Comyn.
The bank will also introduce a new reward scheme for energy efficient homeowners said Mr Comyn by passing on cashbacks to mortgage holders who have solar panels installed.
Commonwealth Bank’s executive general manager of home buying, Daniel Huggins said CBA was committed to developing innovative products for customers who wanted energy efficient options.
“We understand many of our home loan customers could reduce their energy volume and usage, and pay less or become net positive for energy by investing in energy efficient devices.
“We want to support more of our customers who wish to install small scale renewables by reducing their installation costs and payback periods,” said Mr Huggins.
Mr Comyn said the bank would continue to refund customers as quickly as possible and getting things right to improve customer outcomes.
“[CBA] is the bank for all Australians. A bank for businesses, to help them grow and the economy to flourish. And a bank for the country. One that helps all people prosper. And of which the nation can be proud,” he said.
Eliot Hastie is a journalist at Momentum Media, writing primarily for its wealth and financial services platforms.
Eliot joined the team in 2018 having previously written on Real Estate Business with Momentum Media as well.
Eliot graduated from the University of Westminster, UK with a Bachelor of Arts (Journalism).
You can email him on: [email protected]
Perpetual Investment’s funds under management (FUM) have decreased by $1.1 billion over the last quarter as the market continues its move ...
The Australian exchange-traded product (ETP) industry is likely to reach $60 billion by the end of the year according to one provider, with ...
Investors interested in emerging market debt (EMD) should employ specialist managers in order to succeed, according to a report from Willis ...