Technology lead narrowing, CBA widens its aim

Technology had played its part in boosting the Commonwealth Bank of Australia's profitability and competitiveness, and would continue to do so, said the group's CEO, Ian Narev, at yesterday's annual profit announcements.
 
In discussing the place of technology in CBA's plans, Narev was careful not to yield to hubris, noting that CBA's tablet based point-of-sale terminal, Albert, "took longer than expected to launch."
 
Narev said that it was worth waiting for the catch-up to get into full swing, with 3000 devices across 2,500 merchants.
 
Notably, Albert runs on open-source platform, attracting 2000 developers working on the network, with up to 30 new apps on the way.
 
At a more strategic level, Narev said that CBA's new technology was allowing the bank to expand its international financial services business.
 
"The footprint of that business, and its strategic priorities, particularly in China, Vietnam and Indonesia haven't changed," Narev said.
 
"What has evolved is our view on how to use technology, as a real strategic differentiator in those markets.
 
"And it means we can continue the organic growth strategy, but can overcome some of the 'historic' obstacles in those markets, related to the physical footprint and the speed at which we can grow under regulation," he said.
 
Narev also would not be drawn on whether the lead in high-yield technology that CBA once had is narrowing.
 
Instead, he preferred to draw links between ongoing technological innovation, leading to record customer satisfaction levels leading to revenue growth.
 
Narev conceded the bank needed to do more to link technology with productivity, but re-iterated what has been a selling point for CBA: no outsourcing to overseas.
 
CFO David Craig added that CBA continued to invest during the GFC when other banks did not. "We believe that 'out-investment' has underwritten some of the leadership we've had since then, and it's critical to continue to invest, with the opportunities we see out there."
 
This year, CBA was estimated to have spent around A$1.2 billion on technology.