Commonwealth Bank Loses Data: Implications and Challenges

Running head: COMMONWEALTH BANK LOSES DATA
COMMONWEALTH BANK LOSES DATA
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COMMONWEALTH BANK LOSES DATA
Executive summary:
The aim of the paper is to show how irresponsible business conducts by key
institutions like banks have serious effect on the customers. It can be pointed out that
CBA has represented high degree of slack management of confidential data not
befitting its international standards. The bank should take steps to rectify these mistakes
and not repeat them in the future.

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COMMONWEALTH BANK LOSES DATA
Table of Contents
1.0. Introduction............................................................................................................... 2
2.0. Company background:..............................................................................................2
2.1. Product/Services:......................................................................................................2
2.2. Location:....................................................................................................................3
3.0. Analysis of reported issue:........................................................................................3
4.0. Discuss issue using relevant IB framework-international marketing issues:.............6
Loss of customer satisfaction and loyalty:....................................................................6
Weakening of brand name:.......................................................................................... 7
Weakening financial performance (other issue):..........................................................8
5.0. Critique:.....................................................................................................................8
5.1. Implications and challenges on CBA (IB company):.................................................9
Implication 1: Legal actions:.........................................................................................9
Implication 2: Losing investors:.................................................................................... 9
Challenge 1: Financial sustainability:.........................................................................10
Challenge 2: Competitive advantage challenge:........................................................11
7.0. Recommendations:................................................................................................. 11
Recommendation 1:.......................................................................................................11
Recommendation 2:.......................................................................................................11
Conclusion:.................................................................................................................... 11

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COMMONWEALTH BANK LOSES DATA
References:....................................................................................................................13
1.0. Introduction
International commercial banks like Commonwealth Bank of Australia serve
millions of business customers as well individual customers around the world. These
banks provide gateways for financial transactions worth millions of dollars. The
customers in order to conduct financial transactions with CBA input personal data like
personal identification numbers. Commercial banks maintain vast databases in which
they maintain, acquire, manage and utilize the customers’ data for business purposes. It
is evident that any breach in the database can cause loss of data and effect the
customers. The aim of the assignment is to analyse the data loss in which CBA lost
data of 20 million customers.
2.0. Company background:
2.1. Product/Services:
Commonwealth Bank of Australia is a multinational bank based in Australia and
listed on the ASX. The products of the CBA consists of asset and liability products. The
liability products of the bank consists savings account and current account. The asset
products of CBA consists of loans and credit cards. The bank offers loan for buying
homes and business loans. The market of CBA can be segmented into commercial and
domestic customers. The savings bank accounts is meant for domestic clients while the
current account is meant for commercial clients. The products like debit cards and credit
cards are designed to meet the needs of both business and domestic clients. The bank