In today’s era information technology is the need of every business sector especially when it comes for industry like banking. This industry needs growth and innovation for survival in the competitive market. For the process of attainment of endurance, the company needs to involve in various activities in order to keep grip on the consumer and maintain its growth. Like in banking sector, a banking company needs to provide services apart from their core service like, internet banking, online banking, mobile banking etc. information technology empowers an erudite development of product and services within time (Davenport, 2013). IT also helps the company to source its product and services outside their geographical boundaries, which means that IT helps the company in the process of expansion.
In the commonwealth bank of Australia, the company has aimed to develop artificial intelligence to help and support their customers and also save them from fraud. The company has indulged themselves into various innovative programs in order to achieve effectiveness and efficiency in their work (Commonwealth, 2012). Further how the company has emerged with the aid of Information technology is discussed below.
Need of IT in Commonwealth bank
As it known that common wealth bank Australia is an integrated service provider bank which includes retail, business and premium banking. The bank has large customer base setup due to which the bank needs to gather all the vital information of their customers and keep them confidential as well. The bank also provides online broking services under the name of CommSec and Bankwest.
For carrying its day to day operations, the bank needs technology as all the work is done with the assistance of IT only. Retail banking, broking services etc. all these services are provided online as well so that the customer can access their information from anywhere and it is also helpful for prospective customer to know about the bank and its services (Eyers, 2016). Without proper IT assistance the bank will not be able to expand its services worldwide, expand its customer base and deliver innovative technology to all. This bank operates with a distribution channel which provides largest financial services in the country for the customer easy access. The bank has around 1100 branches nationally, around 4300 ATMs regionally etc. so for keep such services ongoing the bank needs contact with IT frequently (Commonwealth, 2017).
Importance of IT for survival of Commonwealth bank
In the time of invention and technology, there is no industry which will survive in market without aid of IT. As it is said for growth and survival the company needs to use innovative technologies in order to retain customers and grow. As the commonwealth bank provide services like, real time banking, real time account opening, kaching application etc. the company has underpinned such initiatives for customer support services and sustainable growth of company. So the company will not be able to further provide such services if IT is obliterated from their process working which will create problem for company and hinder the company’s aim to grow (Eyers, 2015).
With the introduction of services like cyber cash, it has reduced the burden on and its employees to entertain their request at time. So due to this innovation the company has felt a relieved and the work burden are shifted and also now the company is able to focus on its core projects as well. So in this way the commonwealth bank needs IT in their day to day activities.
Application of IT in Commonwealth Bank
The commonwealth bank requires IT for the continuation of their day to day activities. For the bank IT is mainly required in fields of Equipment and training. For a bank their equipment are their application software which use in trading and other activities and also the machines which help in execution of services like ATMs etc. in the process of training, IT helps in such a way that, it helps new trainee to learn to access of information and make use of it properly, it is also helpful in MDP (management development programs).
In the commonwealth bank, the company has developed equipment for the real time benefits of customers. Some of the equipments are kaching, project nimbus, net banking, digi merch etc. net banking is software designed and developed by the company to generate greater liquidity among their customer; the company has provided applications like kaching and commbank to ease the financial transaction done by the people (Commonwealth, 2017). The company also has its broking application through which one can easily apply for their application and check their transactions.
The company is leading contactless merchant which means now it becomes easy and safe for to make payment speedily, also millions of PayPass cards are being generated by the bank. People are also interested in using such technology because it helps them to access any information of the company from anywhere, for that they don’t need to visit the bank. And these facilities support the bank in such way that it creates a technological boom in the market and helps in releasing the stress of the front desk employees of the company.
The process of introduction to IT helps in training of the employee of company, enabling them to practice the technologies so that they can work efficiently and support the company in achieving its organizational objective. With the help of IT the company is also able to provide vocational training to its employees.
Use of IT by internal and external sources
Internal sources of the company refer to the people involved with the working of the company such as employees of the company. IT is used by the commbank for various purposes such as, knowing information about their customer in order to provide them better services, retrieving backdate details about the company and customer, keeping track record of customer so that there is no fraud as well as company’s work and also undertaking their day to day transactions. Also it reduces the stress of front line employees by reducing customer visits at the branch (Kotkar, 2016).
External sources refer to the sources which are also called outsiders of the company. It includes customers and prospective buyers and stakeholders of the company. Buyers can use IT to gain information about the company and with the aid of IT; it has become easy for they make payments as the company has its channels nationwide, the buyers can also seek for areas where they can make investment like, the bank the developed its own application through which the customer can invest in and sell their property (Commonwealth, 2017).
Benefits of IT to commonwealth bank
To the commbank IT helps in innovation of new schemes and technology driven approaches so that they can make a grip in the market. Interbank reconciliation is done in no due time due to which fraud is decreased. Through this bank can easily access the customer’s data and sell them customized schemes according to their requirements. Online banking itself advertises the product and the scheme in the market which can be used as marketing tool. This activity will help company in generation of revenue (Commonwealth, 2017). With the invention of IT, many channels between the processes has reduced initiating flexibility and confidentiality in the company. It has also decreased the expenses of the company such as delivery cost, maintaining paper work cost etc.
Risk involved with IT to commonwealth bank
Cyber-crime is the major threat which can hinder the assistance of IT in the common wealth bank. Cyber-crime refers to an illegal activity performed by any person by harassing confidential information and using it in fraud activities. Emergence of cyber-crime and innovation of technology goes hand in hand as the technology innovates, the chances of crime also increases. Activities like window dressing and Data mining is also possible if the information is not recorded properly and bank employees are not faithful to their company’s image (KMPG, 2016).
The price sensitive information which can affect the position of the commbank if leaked shall be treated with confidentiality but as all such information are stored in the system of the company from where all such information about the company and its customers can be stolen (Jimale, & Ndede, 2017). So there is high risk for the company if such information is misused by any insider or outsider, it can directly affect the reputation of the company and can attract penalty as well if any customer’s information is released without their acceptance.
Monitoring of IT in commonwealth bank
The commonwealth bank has redesigned the net banking application in order to enable people easy access of their money and gain information about their account easily. The company has designed various others programs also kaching for the betterment of their customers. The company aims to provide such information and technology worldwide so that e banking transactions are done easily, for the purpose of the company employee efficient people who have adequate knowledge about the information technology and have the skills of using the artificial intelligence (Kamboh, & Leghari, 2016). Beside this the company has made its application available all kind of software like android, Ios etc. the company has also introduced online videos for the unskilled people to teach them the method of using such kind of technology in order to make it convenient for them so that they don’t need to visit the bank and apply for application again and again.
The commonwealth has provided adequate access of information to their stakeholders for their convenience. Also the bank has initiated many changes in the field of innovation with respect to technology for the purpose of aiming to provide flexibility and remove different channel from between. The company expanding its customer base by providing easy accessibility and product that assist them. As the commbank focuses on the long term reliability of their customer and expand its customer base (Chae, Koh, & Prybutok, 2014).
As the bank faced global financial crisis few years back, which gave a huge loss to them, the customers started losing confidence in them and also the credit rates in Australia reached to the peak. Therefore the bank is trying to prepare themselves for all the unseen liabilities. The bank shall ensure more liquidity with them that this might settle the need of their large share of retail customer base (that is 61%). The bank has adequate exposure to the market which will impact the country in a positive way if it updates it technology (Murdoch, 2011).
Chae, H.C., Koh, C.E. & Prybutok, V.R., 2014. Information Technology Capability and Firm Performance: Contradictory Findings and Their Possible Causes. Mis Quarterly, 38(1), pp.305-326.
Commonwealth, 2012, COMMONWEALTH BANK TECHNOLOGY UPDATE, accessed from, https://www.commbank.com.au/about-us/shareholders/pdfs/2012-asx/Commonwealth_Bank_Technology_Update_25_May_2012.pdf
Commonwealth, 2017, Commonwealth Bank overview, accessed from, https://www.commbank.com.au/about-us/our-company/overview.html
Commonwealth, 2017, Equip, from, https://www.commbank.com.au/content/dam/commbank/assets/business/asset-finance/cba-equip-magazine-issue6-2017.pdf
Commonwealth, 2017, Innovation, viewed from, https://www.commbank.com.au/corporate/industries/institutional/technology.html
Commonwealth, 2017, Our Strategy, viewed from, https://www.commbank.com.au/2014shareholderreview/strategy.html
Davenport, T.H., 2013. Process innovation: reengineering work through information technology. Harvard Business Press.
Eyers, J, 2015, Commonwealth bank technology investment to keep fintech on backfoot, Financial Review, viewed from, https://www.afr.com/business/banking-and-finance/commonwealth-bank-technology-investment-to-keep-fintech-on-backfoot-20150815-gizysc#
Eyers, J, 2016, Artificial intelligence in mind as Commonwealth Bank develops future tech, Financial Review, viewed from, https://www.afr.com/technology/artificial-intelligence-in-mind-as-commonwealth-bank-develops-future-tech-20161202-gt2nfl
Jimale, H.D. & Ndede, F.W.S., 2017. CREDIT RISK MANAGEMENT AND ACCESS TO BANKING SERVICES BY ISLAMIC BANKING CUSTOMERS IN KENYA. International Journal of Finance, 2(6), pp.75-102.
Kamboh, K.M. & Leghari, M.E.J., 2016. IMPACT OF CASHLESS BANKING ON PROFITABILITY: A CASE STUDY OF BANKING INDUSTRY OF PAKISTAN. Paradigms, 10(2), p.82.
KMPG, 2016, Cyber security is the most prevalent IT risk for banks, accessed from, https://home.kpmg.com/bh/en/home/insights/2016/09/cyber-security-most-prevalent-it-risk-fs.html
Kotkar, S.N., 2016. Technologies in Nationalise Banks: Factors Influencing on Customers. International Journal, 4(9).
Murdoch, S, 2011, We can handle this crisis, says the Commonwealth Bank, The Australian Business Review, viewed from, https://www.theaustralian.com.au/business/financial-services/we-can-handle-this-crisis-cba/news-story/d54a09b597b78a4c199ad70c48fa5e3c