It doesn’t take long for predictions to become predictable: The rise and rise of Facebook; advancements in analytics; the normalisation of chatbots; personalisation, programmatic, automation, authenticity… The prediction that’s missing from these lists is that in 2017 we will witness a resurgence of values-based marketing.
The Commonwealth Bank has highlighted stronger customer engagement and support along with innovation for delivering a 2 per cent increase in net profit for its full-year results for the financial year to 30 June 2016.
According to CBA’s CEO, Ian Narev, the bank has pursued a simple, consistent strategy for over a decade now and the results are showing through.
“Continued execution of that strategy, focused on customer satisfaction, innovation and strength, has again driven solid operating performance and balance sheet growth for the Group,” he said. “In the banking businesses, net interest income growth was supported by continued home and business lending and strong deposit growth, particularly in transaction banking.
“In other parts of the group, we also saw trading income growth and an increase in funds under administration. Sound cost management saw improvements in the Group’s cost-to-income ratio, and together with income growth, resulted in a 6 per cent increase in operating performance on the prior year”.
According to its results presentation, Commonwealth Bank ranked outright number one for retail customer satisfaction for each month during the financial year, and ranked first or equal first in all key segments of business customer satisfaction at year end.
“Customer satisfaction is the key metric we use to benchmark execution of group strategy, because satisfied customers look to us to meet more of their needs,” Narev said. “This year we have achieved our best ever customer satisfaction results, and this has again translated into increased customer activity.
“Our capacity to support our customers is directly related to the strength of our balance sheet. As a result of the capital raising and strong organic capital growth throughout the year, we have substantially boosted our capital position.”
From an internal perspective, Narev stressed the bank’s staff have showed continuing commitment and dedication to their customers and corporate values.
“This year, to support our focus on embedding a values-driven way of working across the Group, we are incorporating into everyone's performance review an assessment of how we have demonstrated our values and enhanced our risk culture,” he said.
Momentum on innovation initiatives was also maintained in 2016, with the emphasis on fast and simple digital transactions for retail customers. Examples include the CommBank app, which now includes ‘Instant Banking’, allowing new-to-bank customers to open an account and transact immediately, new online loan approval capabilities, and click-to-pay with ‘Photo a Bill’.
For business customers, the focus was on delivering business intelligence and integrated technology solutions, including through new partnerships with leading fintech providers. The bank also continued the successful roll-out of Albert EFTPOS tablets, with more than 40,000 now in the market.