Commonwealth Bank Of Australia: Banking Services And Sustainability

Overview of CBA

CBA (Commonwealth Bank of Australia) is an Australian transnational financial institution with its operations in Fiji, New Zealand, USA, United Kingdom, and Asia. The company was established in 1911 (Adzis, Tripe, & Dunmore, 2010). CBA offers a wide range of monetary services comprising business, institutional, and retail banking, insurance, and financial management. The company was awarded the Asian Banker Transaction Banking Awards in 2009, the award which highlights yearly attainments of financial institutional all over the world recompensing endeavors for product, operational merit, and market share. Sustainability refers to the fortitude of processes and systems. The key factor in sustainability is viable growth that include the four unified areas: economics, ecology, culture, and ecology.  CBA is an Australian financial institution that is famous for offering a number of financial and banking services and products to business, institutional, and retail customers in different nations. The firm offers banking services and products to many nations such as United Kingdom, New Zealand, Australia, and Asia Pacific. Diverse forms of banking facilities and products offered by CBA include savings account, transaction accounts, credit cards, term deposits, home and personal loans,  economic planning facilities; superannuation goods, foods for students and youth, car, youth, life, loan and credit card security, insurance services, online and global banking facilities, and income protection. The firm is also famous for offering business banking facilities like credit cards and business accounts; merchant services, overdrafts to the clients, and business loans. Moreover, CBA also offers facilities and products for purposes of helping institutional and corporate customers for handling the liquidity and cash flow (BLICKLE & BROWN, 2018).

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Commonwealth bank of Australia is dedicated to offering good results for clients, winning back the society’s trust and confidence, reliably satisfying customer demands and providing long-term and sustainable value to its shareholders (Otchere & Chan, 2003).

Customers in the firm are involved in a number of ways, involving through complaint channels and customer feedback, workshops, surveys, external dispute resolution organizations, and customer representative groups.  Customers can also contact us via phone, electronically or post. The firm has a customer activist occupation to support responsibility for rational customer results and provide a more customer-centered means to the company’s business.

The Bank’s engagement with its societies offers perceptions into refining products and services to attain the varying public demands.  Commonwealth bank of Australia interacts with members and community organizations through indirect and direct channels, as well as external consultative boards, meetings, provision of events and summits, and industry memberships.

Banking Services Offered by CBA

The firm’s recognizes the significance of different personnel and the necessity of people to reveal to the local communities and customers. It is dedicated to forming and upholding a comprehensive working culture that offers sustainability to the company and its prospect. The obligation is voiced in the company’s inclusion and diversity policy and ranges to every part of the organization including talent development, identification, recruitment, distribution of duties, Board engagements, employee retention, performance appraisal, promotions, coaching and mentoring programs, supple work planning, types of leave offered to workers, knowledge and expansion, other procedures and policies, and succession planning (Bainbridge, 2015).

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The company communicates with its stakeholders in variety of ways. The first mode of communication is multi-channel engagement which includes face-to-face engagement with stakeholders (Miles, 2012). The bank sets official board meetings with its stakeholders at a specific time of the year. Secondly, the bank communicates with its customer group of stakeholders through customer workshops, community group surveys, customer advocates, call and complaint centers, social media and meetings with relationship managers. Furthermore, according to Rieves (2012) the bank communicates with its employee stakeholders via group-wide surveys, Ad-hoc surveys, digital and social platforms, employee meetings, events and town halls and Group executive mailboxes. Investors get their notifications through annual general meetings, briefings, surveys, financial and non-financial reporting as well as submissions or proposals. The organization communicates through the media in means such as phone calls, media releases and electronic mail inboxes.

To ensure that all standards of company performances are met, the bank has some slight improvements it would realize. First, the Commonwealth Bank of Australia should be made public in terms of offering services, employment and communication. Levebvre (2012, P.5) would make it public by employing diverse individuals from all over the globe. These personalities should be the best in the lines of work to ensure perfection in service lending. Additionally, communication with stakeholders, bank employees and customers should be done in a way that a larger populations gets to recognize the bank and its activities. Moreover, products from the bank and security can be enhanced to improve customer relations with the company (Noorpoor, Motlaghi & Jafari, 2014).

The research done reviewed particular sections of the bank and recorded its data in a marketing audit that focused on the organization, its annual general meetings, its numerous announcements to customers, shareholders and stakeholders and its digital sense of communication.

Queensberry (2016) views that marketers of the organization have since history put significant focus on acquisition of new customers and recognition of new customers as a source of the company growth through advocacy. The organization does this by understanding and appreciating the profile of the customers, changing the mode of communication to a more personal and direct means and rewarding the customers who are termed loyal in participating in Central Bank of Australia activities of the bank. Additionally, the company ensures customer growth in involving them in the company’s decision making through annual general meetings, financial reports and the social media. Moreover, the bank has lowered its interest rates from 20% to 16% and still plans to lower them to wow new customers as well as shifting its cultural setting, diversification and approach to broaden the localities from which its customers originate.

CBA’s Commitment to Sustainability

When a company practices co-creation, it brings about third-party individuals to act as its advisers. The group of individuals could be made up of consumers of the bank’s products and services, stakeholders, shareholders, marketers, retailers and distinguished experts in the field of decision making and giving advices (Tan & Parker, 2016). Co-creation helps the Commonwealth Bank of Australia in providing all sorts of applicable insights in actual time. These aspects of co-creation will also aid the company in unleashing high tech features of new and advanced technologies needed to run the company and wow in new customers for the complete efficiency of the bank. Co-creation gives the bank demographic information too, as per (Quessenberry, 2016). This means that in the early stages of marketing the products and services of the bank, young adults might have unlike the product then after a recent analysis, the group loves and motivates the product. Furthermore, co-creation aids the bank as a marketing research tool. Because co-creators are in the same position as the rest of the world, they know the kind of advertising material that people like, the colors the company should include in the advertisement and the correct individuals to carry out the advertisement. A company can decide to apply a negative sense of marketing in its activities. The Commonwealth Bank of Australia used the negative sense of marketing by creating more negative personas. Negative and exclusionary personas refer to the opposite of a more interested persona of a customer or consumer of the bank’s products. According to (Hermansson, 2018), an act by the bank to recognize the group of people that can never become customers of the organization because of a variety of reasons such as the people not having a budget or social media presence among others. Secondly, the bank practices negative marketing by applying a technique called leverage exclusivity. Normally, when an individual tells someone that they can never have something, the latter would crave and want it much more. The bank puts a product in market but tell the people that the product is in scarce and the first only one hundred consumers could have it. The consumers would flock at the product making it a better marketing technique than all the other techniques. Other techniques the bank could use to market itself is by creating negative headlines and titles in its communication platform, craft a connection of people over a shared negative experience, create universal villains, start and stir up a company controversy and make fun of itself to attract customers.

Customer Engagement and Communication

An exchange is a form of a marketplace in which commodities, supplies, derivatives and other financial instruments are exchanged and traded. The primary function of an exchange is to ensure an effective, orderly and fair trading and proper extension of a product’s price information for any difficulties in the exchange. Schoar (2012) states that an exchange gives a company or the government a platform to sell its securities to another company or the general public. This platform, for the case of the Commonwealth Bank of Australia is a universal platform where the company sells its securities to the investing stakeholders and the general public. The exchange for the bank is a physical building located in the city of Australia where stock exchange markets from all over the world meet to buy and sell securities. Due to currently more sophisticated markets, the bank also has an electronic exchange which is run at a normal rate of 15% exchange with other companies from the United States of America and Europe. According to Noeth (2012), the importance of an exchange to the company is that it raises its capital for its growth and expansion of the company’s operations without listings of requirements. Also, the recognition of the bank in the stock exchange attracts investors to carry out their banking operations with the company.

Company culture is one of the main topics discussed with the view that it describes the immediate environment in which employees either win or do not. Hodkinson (2017) asserts the opinion that a company culture is created by everyday socializations and interactions within the company and is bound to be dynamic as the organization grows and expands. In particular, the culture in which the bank operates wholly depends on the values of the community that the bank is situated. The definition of culture is articulated to the community at large. The culture of the land has huge impact on the culture and the activities of the bank. Additionally, rules set by the community adhered to by the company are universal for all the employees, customers, stakeholders, shareholders and all other employers of the Commonwealth Bank of Australia. The culture include the environment in which the employees work, ethics, company mission, goals and values. As a result, the company culture of the bank helps the employees enjoy their stay at the workplace as they try to fit in the company while developing good and mutual relations with the co-workers.  Similar to other organizations, the Commonwealth Bank of Australia has corporate inconsistencies or contradictions that hinders smooth running of the company. Giblin (2013) supports the topic that most of these contradictions are based on the adherence and respect for the employees’ rights and human rights for the community and the overall population. These contradictions include, firstly, is a request by all company employees and the staff for a simple checklist containing employees’ rights and human rights, distinctive from the rights of the nation and those of other companies. The second inconsistency that faces the Commonwealth Bank of Australia is levers of change. This the error made by the bank when they attempt to connect responsibility with influence. However, this contradiction is minimal for the bank as it argues that it vast size provides it with leverage with the government or another company. The third contradiction is the limits of learning where the bank tries to obtain knowledge from the best practices of other companies by emulating the company without realizing that is actually nothing to be learned from the other organization. However, the government and other several similar companies have given numerous attributes to the Commonwealth Bank of Australia. This is because of the success of the company and the good manner in which the company offers customer care services. The Commonwealth Bank Australia (2014), in their journal, state that the company is crowned these attributes because of three reasons. First is because of its trust. Successful companies, like the Commonwealth Bank of Australia, build trust between its customers and the employees for the betterment of the bank and satisfaction for the customer. Secondly, the bank obtained these attributes because of its consistency. The company has realized that customers do not need surprises, rather, they need consistency in their marketing, presentation of its brand, image, interest rates and pricing. Finally, the bank accounts its attributes to its consistent loyalty to its customers in terms of keeping their finances and maintaining its interest rates as well as fair treatment to its employees (Amin, 2016)

Improvements Needed at CBA

Regardless of the size of a company, the body in charge of the firm want to create a brand that represents the business. A brand is a general effect or a visual impression that is seen, heard or experienced by consumers who have used or still use its products. In order to create a brand, the company has to evaluate the impact that the product has on the general public. The process of creating a brand starts with defining the purpose of the company. Mullainathan (2012) is of the opinion that the result will directly aid in defining its brand. Secondly, the brand should be consistent. This means that the brand should have the same effect on all its customers all over its perimeter. Thirdly, a feature used by the Commonwealth Bank of Australia is that its brand are differentiated from other brands. The brand is successful in the fact that it creates and develops a huge gap between itself and other competing companies in the minds of its customers. Usually, most companies manufacture products that are similar to those of the other companies, the difference is in the brand. Fourthly, creativity in creation of the brand was warmly welcomed in the creation of the bank’s brand. The best brand is one that is innovative in its message, ideas and the medium used in the deliverance. Other factors used by the company to create its brand include the emotional connection the brand brings to the customers, monitoring and reviewing the brand as well as the company culture.

Conclusion

Commonwealth Bank of Australia is a corporate bank that is undoubtedly recognized all over the world for a large population of customers, stakeholders and shareholders who are treated well and fairly. The running of the organization is presentable regardless of a minimal number of contradictions that when corrected, gives the company sounding attributes that should be emulated by other financial companies. However, the company has to realize certain improvements to advance in its category. These improvements are based on originality and applicability. Starting with originality, in the opinion of the researcher, the company should not compete with other companies in having the highest number of customers by lowering its interest rates or raising the cost of marketing but improve the way in which it treats it customers. In doing so, other customers will naturally realize the work of the bank and invest in the company. In terms of applicability, the company should identify the need for change, analyze its current progress, and obtain commitment and support from similar organizations and lastly an improvement strategy to achieve public recognition and ensure satisfaction to its customers.

References

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Amin, M. (2016). Internet banking service quality and its implication on e-customer satisfaction and e-customer loyalty. International Journal Of Bank Marketing, 34(3), 280-306. doi: 10.1108/ijbm-10-2014-0139

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BLICKLE, K., & BROWN, M. (2018). Borrowing Constraints, Home Ownership and Housing Choice: Evidence from Intra-Family Wealth Transfers. Journal Of Money, Credit And Banking. doi: 10.1111/jmcb.12566

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Hermansson, C. (2018). Can self-assessed financial risk measures explain and predict bank customers’ objective financial risk? Journal of Economic Behavior & Organization, 148, 226-240. doi:10.1016/j.jebo.2018.02.018

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MULLAINATHAN, S., NOETH, M., & SCHOAR, A. (2012). The market for financial advice: an audit study. Cambridge, Mass, National Bureau of Economic Research

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