CBA deploys online technology to boost wealth share
Commonwealth Bank is investing in a range of new wealth management services in a bid to increase its share of wealth products among its customer base.In presentation material accompanying its half-year financial report last week, the bank reported that its customers have an average of 3.1 products with CBA and an average of 8.1 products with any financial institutions (products include deposits, loans, cards and wealth).CBA customers have an average of 2.3 deposit products with any institution and 1.5 of those with the CBA, giving it a 65 per cent share of its customers' deposit business.The bank's customers have an average of 1.8 loan and card products with any institution and 1.1 of those with the CBA, giving it a 61 per cent share of wallet in that category.In wealth the numbers don't look so good. CBA customers have an average of 3.9 wealth products with any institution and an average of 0.5 with the CBA, giving it a 13 per cent share in that category.The bank has had success with the launch of a range of online and mobile banking services over the past few years. While the average number of products per customer is 3.1, customers who use the internet and mobile apps for their banking have an average of 4.2 products.Last year CBA started directing its technology investment at its wealth business, hoping to achieve similar share of product benefits.In June, it launched a service called First Net Investor, providing customers with access to Colonial First State superannuation and managed funds through the same interface online, via tablet and via mobile.In September, it launched Portfolio View for self managed superannuation fund trustees. Customers can go online or use a tablet or smartphone to review the full range of their investments.The wealth management division made a net profit of A$372 million for the six months to December - an increase of seven per cent over the previous corresponding period. Assets under management grew six per cent to $199 billion and funds under administration grew six per cent to $133 billion. Eighty-five per cent of Colonial First State Global Asset Management funds outperformed their three-year benchmarks.