Customer Experience and Banking Practices: CBA Report

This report provides an analysis of customer experience at the Commonwealth Bank of Australia (CBA). It begins with a brief profile of the bank, highlighting its international presence and range of financial services. The report then categorizes customer complaints, focusing on issues related to mismanagement, account access, and withdrawal/deposit problems. A significant portion of the report is dedicated to the difference between online and traditional banking services, emphasizing the importance of the CBA's mobile app and the impact of its failures on customer satisfaction. The report discusses various types of customers (potential, new, and loyal) and addresses key issues such as the need for customer feedback and the importance of addressing complaints to maintain competitiveness. The report concludes with a discussion on how the bank can improve its customer experience by collecting feedback and adapting to customer needs in the digital banking environment. The assignment draws upon academic sources to support its claims and provides a comprehensive overview of customer experience in the banking sector, particularly concerning online banking and mobile app functionality.

Running head: CUSTOMER EXPERIENCE
Customer experience
Name of the student
Name of the university
Author Note

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Brief profile of bank:
The Commonwealth Bank of Australia (CBA) is an international bank. It conducts
businesses all over Australia and New Zealand along with the United States, the United
Kingdom and Asia (Mitchell and Thompson). The bank offers large number of financial
assistance to its customers in the form of business, retail and institutional banking along with
investment, insurance and broking services and fund management. The CBA is one of the
four largest banks of Australia and performs its banking activities under an oligopolistic
market structure (Heard, Menezes and Rambaldi). To operate business more actively and
efficiently, this bank provides net banking facility like other banks to its customers. Through
this system, the bank helps customers to manage their account and to transfer funds.
Moreover, customers can manage their saving goals and access assets and liabilities. The
CBA permits customers to operate their accounts through mobile phone with the help of a
mobile phone app available for Android and iOS (Brassil and Nodari). With this app,
customers can successfully transact their short-term and medium-term transactions.
Types of customer complaints:
Customers’ complaints can be divided into three segments, which are complaints
against mismanagement, trouble to open or close an account and complaints against
withdrawal and deposit money (Berry et al.). To operate efficiently, each bank needs to offer
proper facilities to its customers or else they can complaint against this bank. Those issues
can be generated in both online banking and traditional banking service. The CBA has also
experienced same difficulties due to their mismanagement.
Main customer complaints:
The bank has provided online banking facilities to their customers so that they can
access their account easily and can receive information from banks on a daily basis. In this
context, app plays a significant role (Khan, Hameed and Khan). This can be considered as

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one of the chief advantages for offering online services over traditional one. However, in 14th
July, 2018, this app has failed to access and consequently many customers cannot transact
their funds. As the app has remained unavailable for almost hours, customers have become
frustrated about it. Moreover, many customers have complained against this mismanagement
as they have faced difficulties to purchase any necessary items like groceries with the help of
this app.
Difference between online and traditional banking service:
This phenomenon sharply indicates that most of the customers are using online
banking for their daily purposes while traditional banking system has remained unable to
provide those opportunities. At present, people buy their basic needs such as foods, cloths
and medicine and so on through net banking. Moreover, bank provides facilities to pay bill,
recharge phone and other money related transactions easily and instantly with the help of this
online facility. On the contrary, traditional banking service cannot provide such facilities to
their customers and for this making transaction through bank has remained limited in
previous years. However, in modern era, most of the people intend to use online banking as
they can access their accounts from anywhere and at any time (Bacinello et al.). Initially, this
journey related to shifting of transaction from traditional service to online one, was not easy.
Customers have experienced many difficulties to operate this net banking system. Moreover,
bank also cannot provide entire facilities through their app, initially. With growing and
changing requirements of customers and modern technology, the CBA has changed various
features of their net banking facilities over the year. As a result, this app has earned
significant importance among customers at present. Thus, failure of this app has generated
huge loss for this international bank while customers have experienced unpredictable
difficulties. Moreover, customers sometimes experience other difficulties while they use this

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CommBank app, for instance, log in problem and low loading speed for slow internet
connection (D'orazio et al.).
Hence, it is essential for the bank to observe those difficulties that a customer
experience at the time of using this mobile phone app. For this, the CAB conducts a survey
on its existing customers, who use net banking frequently. After understanding this gap, the
bank can update its app to fulfil this gap. With the help of new technology and other
revolutionary proposals from customers, the bank has intended to modify its net banking
service (Blomstrom). The gap has occurred due to mismanagement of bank along with
technological fault. It was essential for the bank to inform its customers about this
unavailability of app so that they can take alternative way to transact. Hence, with the help of
complaints of customers, the CBA can identify about various difficulties that the bank can
improve or develop.
Types of customers:
In this context, various types of customers of the bank can be considered. Some
customers are referred as potential customers while some others are new one. Potential
customers are those, who have conducted their businesses with this bank from beginning.
Hence, they have contributed noticeably through taking huge amount of loans. The bank has
received huge amount of profit from those customers (Berentsen and Schar). On the other
side, new customers are also important for any bank as well as for the CBA. Those new
customers also help the bank to expand their business through taking loans. However, to
attract new customers and to increase customer base, the bank requires maintaining well
reputation and facilities for their customer. However, this unavailability of apps can force this
bank to loss its customer base for coming years. The bank has also other types of customers,
who are referred as loyal customers (Yip and Bocken). This type of customer keeps coming
back to use banking facility from this international bank without considering any disputes

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regarding accessibility of app or mismanagement. Hence, the bank cannot receive any
negative feedbacks from them and the bank can consider itself risk free to conduct business
with them. Thus, to conduct survey, bank requires to consider responses of potential
customers.
Addressing chief issues of the bank:
Thus, according to above conversation it can be said that cooperation of customers are
essential for this international bank to improve various functions of its app. Receiving
feedbacks from others can help this bank to empower itself and compete with other large
three banks of Australia. For this, it can be beneficial for the bank to develop a chart for
identifying customers, who come into their banks based on their body language and forms of
communication with a bank employee. Each day, more than thousand customers visit to the
bank for their daily transactions and this number increases when net banking facility stops to
work (Raz, Druehl and Blass). In this situation, most of the customers complaints and express
their dissatisfaction. Thus, the bank can generate a feedback form to collect data through
making 9 grids marking from very poor to highly satisfied section, where the customer can
express his level of satisfaction to deal with this bank. Moreover, the bank can give a
testimonial and opinion sections from where they can get information regarding any gap or
mismanagement those customers are experiencing. Hence, with the help of those forms, the
bank can shortlist minimum 3 or 4 typical complaints, which most of the consumers state and
give opinion to improve this situation as for different countries, requirement of customers are
different (Kaynak and Whiteley). In most of the developed and developing countries, this
feedback is essential as customers in those area use net banking by large extend.
Hence, it can be concluded that customer satisfaction is an essential issue for any
bank to sustain and compete with others in international bank.

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References:
Bacinello, Edilson, et al. "Nonlinear Antecedents of Consumer Satisfaction on E-Banking
Portals." The Journal of Internet Banking and Commerce (2017): 1-21.
Berentsen, Aleksander, and Fabian Schar. "The Case for Central Bank Electronic Money and
the Non-case for Central Bank Cryptocurrencies." Federal Reserve Bank of St. Louis
Review 100.2 (2018): 97-106.
Berry, Riley, et al. "How we complain: the effect of personality on consumer complaint
channels." Journal of Hospitality & Tourism Research 42.1 (2018): 74-101.
Blomstrom, Duena. "EX—Perspective on Modern Digital Banking." Emotional Banking.
Palgrave Macmillan, Cham, 2018. 85-95.
Brassil, Anthony, and Gabriela Nodari. A Density-based Estimator of Core/Periphery
Network Structures: Analysing the Australian Interbank Market. No. rdp2018-01. Reserve
Bank of Australia, 2018.
D'orazio, Christian J., et al. "A Markov adversary model to detect vulnerable iOS devices and
vulnerabilities in iOS apps." Applied Mathematics and Computation 293 (2017): 523-544.
Heard, Christopher, Flavio M. Menezes, and Alicia N. Rambaldi. "The dynamics of bank
location decisions in Australia." Australian Journal of Management 43.2 (2018): 241-262.
Kaynak, Erdener, and Alma Whiteley. "Retail bank marketing in Western
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Khan, Ikram Ullah, Zahid Hameed, and Safeer Ullah Khan. "Understanding online banking
adoption in a developing country: UTAUT2 with cultural moderators." Journal of Global
Information Management (JGIM) 25.1 (2017): 43-65.
Mitchell, Stephen, and Chris Thompson. "Recent Developments in the ATM
Industry." Reporting Australia’s Foreign Reserve Holdings 1 The Reserve Bank’s Collateral

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Framework 7 Housing Accessibility for First Home Buyers 19 Underlying Consumer Price
Inflation in China 29 Ageing and Labour Supply in Advanced Economies 37 (2018): 47.
Raz, G., C. Druehl, and V. Blass. "Gal Raz." Production and Operations Management 20.1
(2018): 92-115.
Yip, Angus WH, and Nancy MP Bocken. "Sustainable business model archetypes for the
banking industry." Journal of Cleaner Production 174 (2018): 150-169.