Australia’s largest bank just posted a $9.063 billion profit, up 5% year-on-year.
Over the past 12 months the bank has invested $1.2 billion in risk and compliance projects, technology and productivity.
“Technology again featured strongly in the high levels of investment that we maintained throughout this financial year,” CommBank CEO Ian Narev said.
“Our focus remains on the use of technology to improve all our channels, and to underpin continuous process improvement, to simplify our customers’ experience with us. The impact of our technology focus is particularly clear in transaction banking and deposits in this result.”
In the 12 months to June, CommBank was able to fund its lending growth from customer deposits, which increased to $478 billion, up $39 billion on the prior year and now account for 63% of total funding. Innovations around cardless cash and tap-and-pay tech has also seen the number of transactions being processed by the bank increase.
Narev said CommBank will continue its investment in long term strategic priorities.
“Our ongoing goal is to have highly motivated people putting the customer at the centre of everything we do, and focusing on deploying leading technology to simplify our customers’ dealings with us, and to continuously make the organisation more productive,” he said.
CommBank’s tech investments include an Innovation Lab in its Sydney office and an team of 75 US designers who work on the bank’s websites, wealth management tools, NetBank service and apps.
Earlier this month the bank released the next phase of its mobile wallet strategy which involved digitising loyalty cards. It also revealed the number of users on its Commbank mobile app doubled in the 12 months to March from 1.7 million to 3.7 million.
The bank is looking to leverage its existing customer base as it pushes into more digital offerings in a space where the likes of Apple, Google and a bunch of startups are also innovating. It’s also increasingly having to compete with a number of fintech startups which are innovating various processes in the financial services sector.