Innovation and Sustainable Growth at Commonwealth Bank of Australia

This report delves into the crucial intersection of innovation and sustainable business development, focusing on the Commonwealth Bank of Australia (CBA). It examines how CBA leverages digital innovation to meet evolving market demands and ensure long-term business viability. The report highlights CBA's digital banking initiatives, including unclaimed benefits identification, automated lending, and personalized customer messaging. It further explores the transformative impact of digitalization on CBA's operations, emphasizing blockchain technology, machine learning, and a focus on customer experience. The advantages and disadvantages of digital banking are also discussed, underscoring the importance of cybersecurity and user-friendly interfaces. Ultimately, the report positions innovation and sustainability as essential for CBA's continued success and adaptation to future challenges, while also acknowledging potential risks associated with digital transformation. Desklib provides a platform to explore more such solved assignments and project reports for students.

Running head: INNOVATION
Innovation and sustainable business development
Name of the student
Name of the university
Author Note:

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Table of Contents
Introduction................................................................................................................................3
Aims and Innovation process.....................................................................................................4
Digital Innovation......................................................................................................................5
Transformation of Commonwealth Bank of Australia through Digitalization..........................6
Advantages of Digital Innovation..............................................................................................7
Advantages and Disadvantages of Digital Banking...................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
The following report is based on the discussion of the innovation and sustainable
business development processes. Innovation and business sustainability are two of the most
important elements that are related to each other in different manners. The present demand of
the globe for different kinds of the resources is not sustainable. The sustainability is such a
process that helps the organization or a person to act and operate on such a manner that it is
able to cope up with the different demands of the future. The management of the business
organizations have been constantly involved in the creation of the different kinds of strategies
and products that outclass the expectations of the people and makes them inclined towards
them. This particular process is termed as innovation. The better the innovation, the better
will be the chances for the organization to ensure business success and also ensure the long
term durability of the organization in the future. The innovation in a business will involve the
likes of the change in the vision and the leadership styles, multiple level focus and the
elimination of the different kinds of the perverse subsidies.
The following report has been based on the study of the innovation and the
development of a particular business organization in accordance with the different kinds of
the market needs of the modern days. The Commonwealth Bank of Australia is a
multinational bank with businesses spread around Australia, New Zealand, Asia, the United
States and the United Kingdom (commbank.com.au, 2019). The management of the business
organization provides a number of different kinds of financial services like that of
institutional banking, funding services, retail business services, management of business
funds and many more as such. With a huge revenue of around A$30 billion, the company is
one of the largest listed companies in Australia as well as globally (commbank.com.au,
2019). Globally, sustainability challenges have turned out to be even more material that helps
to formulate and implement long term business strategies and make the most of the different

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kind of the customers and the stakeholders of the business accordingly (commbank.com.au,
2019). Therefore the changing times and the need for better and developed services has
compelled the management of the Bank to innovate their products and address the needs of
the people.
Aims and Innovation process
The major aims for the different business organizations of the globe is to remain
innovative and to develop new products in a fast manner in order to stay updated with the
market and make necessary steps to keep their market share intact. Innovation has the natural
capability to create a competitive market share for the organizations operating in the market.
The management of the innovation process which finally leads to the development of the
business is the major reason behind the success of the business in a proper and innovative
manner. According to, Loorbach et al. (2016) the Management of a company effectively
through the process of innovation and development of the business needs a structured and
informed business analysis. Each of the different kinds of the business innovations has
generally different business aspects with some of them referring to the value proposition,
some to the future users, some to the different kinds of other business responses and many
else as such.
The management of Commonwealth Bank has been dedicated to its use of innovation
and development process. The innovation and development process are two of the most
important elements and perspectives that helps in the prosperity of the business organization.
The business prosperity and the application of the different kinds of the business rules has a
serious implication on the success of the business (Loorbach et al. 2016). Innovation is one of
the basic necessities in banks and a multinational organization like that of the Commonwealth
Bank of Australia has to ensure the presence of innovation in order to meet the new and
improved demands of the customers which in turn ensures the success of the business and

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ensure the smooth orientation and implementation of the business development.
Commonwealth Bank of Australia has decided to launch a number of different kinds of the
digital banking services in the coming days that will make the organization more effective
and will also include the revenue and the profitability of the business organization in an
effective business manner.
Digital Innovation
As mentioned earlier the major innovation that will be undertaken by the business
organization will be the introduction of the digital innovation of the business organization.
The innovation that will be undertaken by the business organization will include a number of
digital banking services that will include the identification of the $150 Million each year in
unclaimed benefits for the different kinds of the business customers. This provides
technological innovation and the implementation of the different digital business tools that
are appropriate for the banking business. According to, Clegg & de Matos (2017) the
management of the business has the aim to restore the lost reputation of the business with the
implementation of the different kinds of the business in a proper manner. The launch of the
new and updated business application that will be helpful for the business to ensure its
success. Meanwhile an automated business lending approval is necessary and will be
launched that will allow unsecured loans of less than $250,000 for CBA customers to be
approved in 12 minutes.
The above mentioned business lending processes are mainly solutions to different
kinds of technological problems faced by the business organization. The targeted customers
of the following process will be mainly the clients who are in need of huge loans. This
includes the likes of the different kinds of the multinational companies, export organizations
and many more as such (Clarke & Boersma, 2016). The management of the company will be
investing more than $5bilion during the next 5 hours in its technology systems. Over the next

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year, CBA will serve up 3 billion personalised messages inside its app. It is sending 500,000
alerts a week to customers with overdrawn accounts, saving them $60 million a year. CBA
will lose $415 million in non-interest income a year as a result of the fee notification
initiatives (commbank.com.au, 2019). The benefits of the following process will help the
business to ensure a healthy competitive advantage in the business market.
Transformation of Commonwealth Bank of Australia through Digitalization
The new entrants in the Australian business sector has changed the face of the banking
sector and the traditional, financial, hiring, crowdsourcing and piloting new solutions that
generally focuses on the experiences of the customers. The major aims of the business
organization is to maximize the experience of the customers and increase the profitability of
the business (commbank.com.au, 2019). The lack of rhetoric around the disruption of the
banking industry raises a number of different questions that needs to be answered by the
management of the business organization in order to ensure the success of the business
organization. Some of the common questions are as follows;
a. How will the innovations transform the legacy banking operations in the business?
b. Will the incumbent banking organizations continue in its aim to dominate or will
there be a disintermediation of the banking organizations by the bank?
c. Will the traditional banking operation and the new banking operations of other
banks be competitors or partners in the near future?
The major question surrounding the ban king industry in the modern day is not whether
the industry will be transformed or not transformed. However, question arises as to what kind
of techniques and digital innovations will be applied to ensure the success of the business
organization in a proper and effective manner (afr.com, 2019). The presence of new
competitors, new technologies, new expectations and demand of the customers along with the

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demand to make the banking process faster drives the organization into the use of the specific
digital channels that are important for the business success. The different kinds of the digital
evolutions that will be applied by the management of the Commonwealth Bank are as
follows;
a. A block-chain based payment system
b. An increased importance in machine learning
c. A new organizational paradigm focused on simplification and agility
d. A focus on brand equity and an improved consumer experience
This types of digital changes will be sure to play a major role in the development of the
business organization. The above mentioned digital changes are capable to implement a
major digital revolution. The digital revolution of the business will increase its profitability
and increase its business scope and business revenue.
Advantages of Digital Innovation
There has been a whole lot of different changes in the elements of business and its
operations within each and every industry of the modern business world especially the way
they buy and sell. The digital revolution of the modern world has especially changed the
ways and techniques of the process within the financial industry. The new technologies
especially the application of the different kinds of the digitalized information has been one of
the best features that has changed a lot of the traditional banking structures (Avelino et al.
2017). The banking solutions based on the traditional banking services have experienced a
drastic change since the introduction of the different kinds of the online banking options.
There are many options to withdraw money, deposit checks, or transfer money without going
to the bank and, with technology advancements, all this has revolutionized (afr.com, 2019).
Cyber security and data protection have also improved drastically since the entire industry

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has shifted to more digital banking options. Factors such as online banking, ATM machines,
financial integration, and 24-hour access have changed the outlook for why there is a need for
digital banking (Bolton & Hannon, 2016).
The major challenges of the management of the business organization has been to
ensure the presence of the digital solutions within the bank that has been a major source for
the business organization. The digital transformations will be helpful for the organization to
ensure business success.
Advantages and Disadvantages of Digital Banking
The main advantages of digital banking are as follows;
a. The digital transformations will smoothen the banks operation process
b. The digital transformation will help to maintain a digitalized database for the
customers of the business
c. The transformation will help to make the business superior compared to other
business organizations
d. Efficient service to the customers because of the implementation of the digital
services
e. Production of more advanced methods in a more user friendly front end service
which is essential for the success of the business organization
f. Digital banking is also essential for the accessing of the account history and
different business transactions
The major disadvantages of the Digital Banking Process are as follows;
a. Security is a huge concern in the absence of proper security
b. Cyber-security threats leads to major problems

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c. Technical glitches can lead to temporary black outs which may lead to the failure
of the business
d. User apprehension is also a big concern for certain people because they might not
be okay with having all financial information available online
Conclusion
The following report has been one of the great examples of innovation and
sustainability. The management of the Commonwealth Bank has to stay aware of the new
needs and demands of the people and update the organization accordingly. However, the
management must also be aware of the new challenges that may lead to a long term impact
over the business. The different challenges can lead to the digital failure of the organization.
The major challenges that still pose a threat to the organization include the demographic
problems, lack of appropriate vision and many other similar problems that can lead to
different issues. AT the present time, the management of the Commonwealth Bank face the
challenge of transitioning 400,000 customers away from old passbooks. This challenge must
be met with a proper and systematic solution to ensure the hassle free implementation of the
strategies in the business. The following report can thus be said to be an informative content
on innovation and its advantages over the Commonwealth Bank of Australia properly.

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References
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