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CBA aims to be the Millennials' bank: Here’s how

·3-min read
Commonwealth Bank logo on the top of a building and CBA CEO Matt Comyn on the right.
CBA is looking to redefine banking for the younger generation (Source: Getty)

Commonwealth Bank has unveiled plans to capture the Gen Z and Millennial market, with chief executive Matt Comyn saying the banking industry must engage the younger generation.

Comyn has stressed the importance of connecting with current and future customers according to their individual needs.

“The shift to digital banking is accelerating and we are investing to remain at the forefront of innovation,” Comyn said today.

“We aim to be the most trusted partner at the centre of our customers’ financial lives by saving them money, giving them more control over their finances, and by making banking simpler and easier.”

CBA will target 7.5 million young Aussie customers by partnering with startups and utility providers to build loyalty, help customers find good online deals, and become a one-stop shop for personal budgeting.

“We are integrating new services into our platform to customise and personalise the digital experience in ways that will increase engagement and bring greater value to our customers,” Comyn said.

“It’s about moving beyond customer service and delivering more rewarding experiences and better outcomes that will build a deeper, more trusted relationship with our customers.”

The aim is to build up loyalty, as the younger generation has typically displayed a willingness to stray away from industry incumbents.

CBA has taken a 23 per cent holding in Little Birdie, an online shopping start-up that helps customers find online shopping deals.

“Little Birdie will bring customers the best shopping deals from across the internet and will help to connect our 7.5 million digitally active customers with our 700,000 business customers,” Comyn said.

The bank chief believes that helping young Aussies find good online shopping deals, combined with the bank’s investment in buy-now-pay-later company Klarna, will differentiate CBA from the other big banks.

“Deals and offers, integrated with CBA’s goal savings products, will help customers save for a special purchase in a completely different way,” Comyn said.

Additionally, Comyn announced a 25 per cent investment in Amber, which provides subscription based access to wholesale electricity prices.

Comyn said the investment is also directed towards young Aussies, and specifically first home buyers who are looking to save money on electricity bills.

“Our partnership with Amber will help to differentiate our home buying proposition, with Amber providing direct access to wholesale prices and bringing additional discounts for CBA customers,” Comyn said.

The bank is also looking to place its app as a one-stop-shop for personal budgeting by becoming the first major Australian bank to allow customers to view account balances from other eligible financial institutions directly on the CommBank app.

Comyn said the bank is looking to redefine what customers expect from a bank and move beyond customer service to deliver “deeper, trusted relationships” with customers.

“We will continue to pursue a strategy of providing a differentiated banking experience for retail and business customers, and leveraging our technology assets to build distinct propositions to better serve our customers.”

CBA has been making a push towards the younger generation recently with the launch of Benefit finder (Bf) to help customers access benefits and rebates offered by the government, and Neo, the zero interest credit card.

CBA is Australia’s largest bank and yesterday the share price passed the $100 per share milestone.

CBA has a market value of about $177 billion. Last year, shares traded for a little more than $60 each.

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