Commonwealth Bank of Australia: Social Media Channels Report

This report provides a comprehensive analysis of Commonwealth Bank of Australia's (CWBA) social media strategy, examining its impact on the bank's core business within the Australian market. The report begins with an introduction to CWBA, highlighting its history and services, followed by an exploration of how social media enhances its business through increased freedom, choice, and control for customers. It details CWBA's use of various social media channels, including Facebook, Twitter, LinkedIn, YouTube, and its innovative Kaching and Bump applications. The analysis covers the positive and negative aspects of CWBA's social media usage, identifying issues such as data loss and security concerns. The report then evaluates how these channels are currently employed, suggests additional channels for future growth, and offers actionable recommendations for improving CWBA's social media strategy. The report concludes with a summary of key findings and recommendations, emphasizing the importance of a robust and well-managed social media presence for CWBA's continued success.

Running Head: MANAGEMENT
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Preparation for Professional Practice
Commonwealth Bank of Australia
(Student Details: )
10/4/2019

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Contents
Social Media Channels for CWBA............................................................................................2
Introduction................................................................................................................................2
Social Media impacts on Core Business of CWBA...................................................................2
Social media channels and their use for CWBA........................................................................4
Kaching..................................................................................................................................5
CommBank kaching: the Facebook app................................................................................6
Instagram, YouTube, Twitter and LinkedIn..........................................................................7
Bump......................................................................................................................................7
Pros and Cons of the use of social media at CWBA..................................................................8
Positives of Social Media at CWBA......................................................................................8
Negatives of Social Media at CWBA....................................................................................9
Issues or Problems with current social media usage............................................................10
Bank bill swap rate allegations........................................................................................10
Money laundering scandal...............................................................................................10
Data and information loss................................................................................................10
Analysis of how social media channels are getting used by the chosen business....................10
Identification of other social media channels for future business growth of CWBA..............11
Useful Recommendations........................................................................................................12
Conclusion................................................................................................................................12
References................................................................................................................................14

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Social Media Channels for CWBA
Introduction
This report is based on demonstrating a preparation for professional practice with the help of
this research on world-famous banking firm. To do so, this discussion has chosen
Commonwealth Bank of Australia (CWBA) which is continuously providing banking
services since 1911. The bank is providing quality products and services to the global users
since 107 years. The chosen financial institute was worked as a government bank initially and
later the CWBA started working as a public company since 1991. It has been found that the
bank is abbreviated as CommBank. It is an Australian multinational bank while doing
businesses in United Kingdom, United States, Asia and New Zealand (CommBank 2019,
2019). This firm is providing a variety of banking services such as retail, business, and
institutional banking, funds management, superannuation, insurance, investment as well as
booking services. This firm has been chosen for writing this research report because CWBA
is the biggest Australian listed firm as of 2015. The aim of this report is to identify the
importance of social-media for CWBA (CommBank, 2019). For doing so, the presence of
CWBA has been considered in Australian market only. In addition, an examination of bank
website as well as social-media presence will be conducted in detail. Here, CWBA is going to
examined based on their presence on Twitter, YouTube, LinkedIn and Facebook while
covering internet banking options as well (Commonwealth Bank of Australia, 2019). In this
way, with the help of social-media presence an analysis of the impacts of social-media on
CWBA’s core business will be executed.
Social Media impacts on Core Business of CWBA
With the help of social-media, one can use CommBank wherever they are in this world. It has
been found that social-media offers an individual the control as well as choice for securely
managing all of their accounts across a range of devices in the way they want. Digital
technology in the form of various social media channels, is giving the bank huge flexibility
while offering great services to its users (Commonwealth Bank of Australia, 2019). In this
way, social-media is leaving positive impact on the business of CWBA as it allows enhanced
access, track, and management of one’s money all across wide range of devices. Social-media

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enabled CWBA to communicate with its clients, customers, stakeholders, and shareholders
effectively (Carey, 2017).
The major three impacts of social-media on the core business of CWBA can be explained as
below:
Freedom
In this context, the social-media is continuously allowing CWBA’s customers for using
banking products and services freely from anywhere in the world. With the help of social
media, bank users get notifications as well as news regarding their bank’s core business
activities, which strengthen their bond with CWBA (CommBank 2019, 2019). In this way,
the digital-banking app and other social media channels include Instagram, Twitter, LinkedIn,
YouTube and Facebook are changing business operations positively for the whole Australian
banking industry (The Economic Times, 2018).
Choice
Social-media gives the choice of different digital wallets and other banking services online.
In this way, when the bank offers huge choices and options to its users, then it is business
growth expands positively (CommonWealth Bank of Australia, 2019).

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Control
As we know the CommBank app makes one’s day-to-day banking activities quicker, simpler
and easier at anytime from anywhere in the world (Yee-Loong et al., 2010). For instance,
paying someone can be done easily with CWBA’s Facebook app. In addition to that, while
using social-media apps or platforms, users can control their banking needs and tasks
simultaneously as CommBank is synched with their social media channel links on their main
website only (CommBank, 2019).
Social media channels and their use for CWBA
The CWBA has released its social-media policy as the inherently and ever-changing public
nature of digital communication is presenting a wide range of challenges to the CWBA. The
challenges can be seen in safeguarding the bank’s commercial activities. The firm is using
different social media channels for its brand and reputation and most importantly their
customers (Vernuccio, 2014). These social media channels allow the bank to ensure the
safety and security of CWBA employees (Torkildson, 2018). For CWBA, social media
channels are those social networks, online forums, picture or video sharing sites, official chat
rooms, micro-blogging as well as rest websites which actually facilitate the publishing of
consumer-generated content. It has been found that social media channels often provide bank
users the opportunity for connecting with other people, share and create info as well as ideas
(Vernuccio, 2014). Social media channels are useful for CWBA while developing and
strengthening relationships with the help of social-media based online networks and online
communities (Vernuccio, 2014).

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The CWBA considers social-media channels as hugely important communication as well as
engagement tools for their business growth (Vernuccio, 2014). It is because social media
channels are used for better interaction with stakeholders, consumers, users, and online
communities (Zheng et al., 2011). The researchers have found that currently used social
media channels by the CWBA are presenting the opportunity to improve the bank’s consumer
relations abilities as well as the chance of listening and engaging in meaningful conversations
with CWBA customers and communities of interest (Yee-Loong et al., 2010).
Kaching
Kaching is a revolutionary novel mobile platform which is launched by CWBA. This digital
app allows CWBA users for making payments to any person in the world with the help of
either their Facebook account, email or phone number. It is worth knowing that app users can
also choose option to have transactions occur instantly. On the other hand, when users want
to make payment later, then the app produces a unique code for their recipients which offer
them online-access to the payment at later point of time (Stawnicza, 2014). Apart from this,
CWBA has mentioned that Kaching offers a novel level of convenience. For an example, an
individual can easily split a dinner bill with their friends requiring almost nothing more than
their friends’ email address (Shenkar et al., 2014). For instance, one can pay their plumber
with his or her mobile number only. In this way, the Kaching app typically ports in the
phone’s address book as well as may interfere with a consumer’s Facebook contacts while

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providing the capability to form peer-to-peer payments while not leaving the app (Pilcher,
2018).
CommBank kaching: the Facebook app
As mentioned by (CommonWealth Bank of Australia, 2019), recently CommBank has
launched the Facebook version of Kaching. In general, the app usually allows one user to
make payments among their Facebook friends. In this context, CommBank ket their users
send payment to friends on Facebook and group administrators on any social-media site
(Pilcher, 2018). It has been found that with the Facebook version of Kaching user are able to
request payments from their friends and thereby keep track of all the Kaching transaction all
across Facebook as well as the mobile app. For using this social-media channel, a user
require a 4-digit PIN code for logging into the Kaching Facebook app (CommBank, 2019).
This runs on the CWBA’s IT infrastructure (SalesForce, 2019). In this way, for confirming
payments, CWBA users need to enter six-digit PIN received through SMS. In this context,
CWBA has committed that they will cover any kind of losses on any unauthorized
transactions created via a user’s Facebook account (Summers & Smith, 2018).

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Instagram, YouTube, Twitter and LinkedIn
There is the link of the Instagram, Twitter, YouTube and LinkedIn page of the CommBank
which is used to keep in touch with the users of the CWBA worldwide. In addition, these
pages are used to hear from CWBA customers (Shenkar et al., 2014). It can be said that
important news and notifications by the CWBA are get released with the help of their
YouTube channel (Littlejohn & Foss, 2010). Furthermore, user feedback along with the ideas
is welcomed by CWBA with the help of such social-media channel. In the form of
aforementioned social media channels the financial institute made sure that there are plenty
of ways to stay in touch with the world (Zheng et al., 2011).
Bump
Recently, it has been found that CWBA has launched the Bump application for iPhone as the
bank is delivering Australian banking to the iOS platform (Lindgreen et al., 2012). This
social media app channel offers iPhone users a great alternative to pay people while using the
Bump (CommonWealth Bank of Australia, 2019). With this app, the CWBA users can simply
bump phones with the recipient and then instant payments can be made (CommonWealth
Bank of Australia, 2019). In addition to that, this social media initiative of CWBA allows
people to split the bill at lunch or dinner or when paying their colleagues back easily (Lister,
2018).

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Pros and Cons of the use of social media at CWBA
As we know that social media is always having positives and negatives and likewise there are
so many pros and cons of social media usage for the CWBA (CommBank, 2019). In this way,
addressing these problems and cons of use of social media at CWBA has become essential
(Commonwealth Bank of Australia, 2019). Before addressing these issues, knowing these
pros and cons of social media use is necessary. In this way, below-mentioned analysis is
depicting the positive and negative picture of social media for CWBA (Littlejohn & Foss,
2010).
Positives of Social Media at CWBA
There are countless positives of using social media by the CWBA while executing their core
business operations. One positive of social media can be seen as with the help of social media
channels banking with CWBA has become easier (Milman, 2015). For example, banking
services which can be provided quickly, instantly and efficiently can be segregated into two
categories, as follows:
Apart from this, social-media is currently playing an important role in the banking sector.
Moreover, social media is also offering key benefits to so many global firms (Norman, 2018).
For instance, brand management, as well as customer services, are improved largely at
CWBA with the help of their social media usage (Norman, 2018). Such key positives of
social media usage at CWBA are as follows:
 Social-media usage at CWBA is helpful in product marketing campaign (Lister,
2018).
 Social-media usage at CWBA is helpful in having positive and healthy relationships
with users, stakeholders, and shareholders (Pilcher, 2018).

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 Social-media usage at CWBA is helpful in customer engagement
 Social-media usage at CWBA is helpful in executing consumer survey (SalesForce,
2019).
 Social-media usage at CWBA is helpful while leading millennial generations
 Social-media usage at CWBA is helpful to use analytic tools for processing data
collected from social media banking (Leist, 2011).
Negatives of Social Media at CWBA
It has been observed and found that social media channels used by the employees of the
CWBA should be done in a private place and time (Karjaluoto et al., 2010). The employees,
users and other stakeholders of CWBA must identify that any utilization of social media
channels like Twitter, LinkedIn, and Facebook, may have an adverse impact on their work, or
personal life. Hence, it is worth knowing that social media usage must be in limit or we can
say it should be only when it is actually required (Keller, 2013).
On the other hand, brand and reputation risk for CWBA is the major negatives of the social
media which it poses for the chosen bank as well. Social media uses digital technology and
the internet which usually poses threats like breach, fraud, time-waste and many more
(SalesForce, 2019). When good can happen with social media use then a lot of negatives like
data breach and unprotected transactions may occur. Subsequently, reputation risks increase
with the social media channels use at CWBA (Kelvin-Iloafu , 2017).
When it comes to compliance, legal and regulatory concerns, then social media channels pose
these issues in bulk for CWBA. In addition to that, enhanced use of social media channels
causes data ownership problems for the chosen bank (Jisha & Jebakumar, 2014). Apart from
this, when it comes to social media channels, then trust issues from the CWBA stakeholders
side occurs at wide level. It is because any failure to comply with the social media policy of
the CWBA can pose a serious disciplinary issue. Furthermore, any violation caused by social
media may result in strict disciplinary actions against people in this world, for example,
termination of employment at CWBA (Kelvin-Iloafu , 2017).
In addition to that, some huge cons of social media use at CWBA can be as follows:
 Data or information loss
 Money laundering (Norman, 2018).
 Data breach

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 Data corruption or misuse (Littlejohn & Foss, 2010).
 Identity theft (Fill & Turnbull, 2016).
Issues or Problems with current social media usage
In this context, there are some problems arising due to currently used social media channels,
which can be further explained as below:
Bank bill swap rate allegations
Recently, ASIC has commenced lawful proceedings while alleging manipulation of the
BBSW which is a bank bill swap rate (Commonwealth Bank of Australia, 2019).
Money laundering scandal
It has been found that a money-laundering scandal at CWBA occurred where financial
intelligence agency AUSTRAC has launched civil proceedings while alleging that CWBA
had breached money laundering as well as terrorism financing laws for at least 53,700 times
(Commonwealth Bank of Australia, 2019). Some researchers have found that it happened
somewhat because of extended use of social media channels which have been discussed
above (CommonWealth Bank of Australia, 2019).
Data and information loss
Due to digital banking and online data storage on social media platforms, a data loss of 20
million accounts has occurred in 2018 (CommBank, 2019). In this context, CWBA has
admitted that they lost the personal records of more than 20 million user accounts. The lost
information and data were including name, address account number and bank statements
from the year 2000 to 2016 (CommBank 2019, 2019). In this way, technology use sometimes
poses such kind of reputation and data loss threats which are clear from aforementioned
example (Carey, 2017).
Analysis of how social media channels are getting used by the chosen
business
The analysis of how above-mentioned social media channels are being used by the bank’s
business for future development and growth is suggesting that social-media channels are
highly useful for this purpose (Khraim et al., 2011). This can be further explained as follows: