One century on…
August 2012
The Commonwealth Bank recently celebrated its centenary since it opened its first branch in Collins Street, Melbourne on July 15, 1912. Not much is the same as it was 100 years ago. Life expectancy has nearly doubled, air travel is commonplace, and among other things, banking is a far cry from the monthly trip to the branch it used to be.
From banking at agencies and post offices to using smart devices to manage your finances, we’ve come a long way since the days of the horse, mule and camel mobile banking team that serviced the Trans-Australian railway workmen in 1912.
The advent of the internet has changed every aspect of our lives, with banking no exception. But even the proliferation of online banking seems a bit old hat in the inexorable march of technology. The ubiquity of the mobile phone means that mobile is the fastest-growing platform for banking interactions and transactions. The launch of CommBank Kaching – a pay anyone, anywhere, anytime social payments app – has proved extremely popular since its launch in late 2011, ringing up 400,000 downloads and $1 billion in transfers. The app is now available on a range of Google Android powered smartphones and Commonwealth Bank also recently gave iPhone users the option to pay people using Bump. CommBank Kaching customers can simply ‘bump’ phones with their intended recipient and an instantaneous payment will be made.
The pace of change is exponential. Social media now dominates business innovation discussions like the internet did a decade ago. In 2010, the Harvard Business Review called social networking “the most significant business development” of the year. This year it will even be possible for customers to do their banking through Facebook, with the upcoming launch of the CommBank Kaching Facebook app.
Technology hasn’t always been so sophisticated, but it has always been innovative. In the early days of 1912 there were relatively few bank branches, with personal banking taking place in post offices and agencies. ‘Mobile banking’ consisted of a horse, mule and camel team travelling 60,000 miles to open more than 4,000 savings accounts of workmen on the Trans-Australia railway line.
Ledger Posting Machines eliminated the need to handwrite individual transactions in 1925, and in 1969 the development of the Black Light signature enabled bank customers to make withdrawals at branches other than their own.
The more recent technology advancements such as the introduction of ATMs in the 1970s, development of phone banking in the 1980s, and then mobile phone banking in the 21st century, have formed the banking experience we now so readily take for granted.
The innovation has improved the processes and outcomes of the banking industry, increasing efficiencies and overall improving the experience not just for the everyday customer but also for business customers. Small businesses account for 95.9% of Australia’s 2.1 million businesses and one challenge they face is cash flow.
In Commonwealth Bank’s Better Business survey in February 2012, two-thirds (60%) of small businesses said it was an issue not being able to access weekend trading funds until the following Monday or Tuesday, and more than three quarters (78%) of small businesses with an annual turnover of under $1m said slow payment processing from merchant/EFTPOS terminals has had an impact on cash flow.
Now, real-time banking is allowing businesses to access the funds they’ve earned that day, without having to wait until after a weekend or public holiday, giving businesses far greater control over their cash flow.
Break-through innovations are also now helping to bridge the gap between merchants and consumers, enabling businesses to connect with their customers in a far richer way than ever seen before. The recently launched point-of-sale (POS) payment platform, CommBank Pi, together with the secure merchant terminal, CommBank Albert, are designed to enrich the customer experience. Together, they will offer a portable touch interface with an unprecedented level of functionality and customisation, providing solutions from inventory management to loyalty rewards.
The next 100 years will continue to bring exciting opportunities and with the advent of more sophisticated technology and ongoing innovation in the world of banking, there is much to look forward to – for both businesses and consumers alike.
Richard Porter is Commonwealth Bank Regional General Manager (Melbourne).
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