Innovation drives growth in lending

Commonwealth Bank’s home and business lending grew significantly over the six months to 31 December 2020, highlighting the ongoing strength of the bank despite the challenging market conditions.

Domestic home lending increased 3 per cent in the six months to 31 December 2020, representing 1.5 times system growth.

A disciplined focus on business management and service levels helped drive the uptick in activity, with lending decisions now automated for approximately 65 per cent of home loans coming through the proprietary channel.

Meanwhile, business lending growth was greater than three times system, with growth in asset finance funding increasing 20 per cent over the six months to the end of the 2020 calendar year. 

Commonwealth Bank plans to double the number of local business bankers in branches across the country. The nationwide business banker expansion will offer customers more personalised business support and help small business customers, and their local communities, rebuild and grow.

In addition to the business banker expansion, the business bank also enhanced its digital service offering.

One example of this was the introduction of BizExpress – a product that helps small businesses get quick access to funding. BizExpress is available in branch and over the phone for business bankers to support customers with their lending requests up to $1m.

In August 2020, Commonwealth Bank enhanced the functionality of its pioneering fast-speed lending system through the introduction of BizExpress Online – which is available through NetBank and the CommBank app.

Today, through BizExpress Online, eligible small business customers can receive a real-time credit decision and have the funds (up to $100,000) credited in their account in as little as 12 minutes.

Looking ahead, it is clear delivering new and innovative digital solutions to customers will continue to be a focus for the bank as it seeks to deliver against its strategy of building tomorrow’s bank today.

Speaking at CBA’s recent technology briefing, Chief Executive Officer Matt Comyn said the bank was determined to remain the clear leader in digital banking.

“We recognise customers are no longer just benchmarking us against other financial institutions. They compare us with the best digital experiences they get from any business in the world. We intend to be at the global forefront of the digital experience, and be the trusted partner at the centre of our customers’ financial lives,” Mr Comyn told technology briefing attendees in January.

“Our investment in technology including data, machine learning and artificial intelligence is giving us unique insights into each customer’s individual needs. Customers want more control over their financial affairs, more confidence they can achieve financial goals, and an ability to manage all of their financial life in one place.”