Analyzing the Impact of ICT on the Commonwealth Bank of Australia

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ICT in Business
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The influence of ICT in everyday business operation
of Banks
Information and communication technology has completely transformed the modus operandi
of banks. One can notice a paradigm shift in customer service delivery in the global banking
sector. In Australia, banks are investing heavily in ICT services to improve performance,
service delivery, and curb the cost of customer service and transaction cost. The development
of ICT has significantly impacted banking services by making them user-friendly and
flexible. In today's day and age, factors, such as deregulation, competition, and globalisation
have compelled Australian banks to offer round the clock services. However, the relationship
between ICT and the bank's performance is conditional (Aliyu & Tasmin, 2012). Talking
about the use of ICT in the Commonwealth Bank of Australia, it aims at reducing payroll
expenses, increases net profits, and increasing market share by gaining competitive
advantage.The ICT has now become an integral part of the banks and other financial
institutions. The integration of ICT and banks would result in two outcomes. The first and
foremost is that it can reduce the operational costs of bank and speed up the transaction
process and other procedures undertaken by banks through an online network. The second
outcome is that ICT can expand the network effect in which it can help in promoting
transactions between clients on the same network.
For the Commonwealth Bank, ICT has established a well-grounded stage for extraordinary
enhancement and long-term improvement in the market. For example, the development of
global networks has tremendously reduced the cost of transferring money. In addition to this,
various ICT associated products, such as online payments, banking, security investments,
exchange of information between different units and departments, etc., have helped the banks
to achieve customer satisfaction and loyalty in fewer efforts. Hilal (2015) highlighted that
ICT services have resulted in 81 percent increment in the output while the contribution of
non-ICT services is only 6% in the output of Commonwealth banks. ICT have empowered
the customers by providing them tools to equate services presented by various banks and
select those that fit their requirement.
The Commonwealth Bank is investing millions of dollars in the ICT over the past years and
the majority of the share goes to data processing services, software updates, and
communication costs. It is also making use of ICT services to lift financial literacy among the
customers. By making use of its blockchain technology, it is cutting cost, reducing errors, and
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protecting customers from big frauds. The economist working at the Commonwealth Bank is
researching new technologies to expand in the new economies. ICT is helping the banks in
operating in the constantly evolving economic, trade, and political environment. ICT has
helped in creating a large number of jobs and new opportunities (Roztocki and Weistroffer,
2015). Banks have fabricated a capital market platform to facilitate capital raising by issuing
bonds through blockchain. Commonwealth bank has built a transaction model that results in
the direct transfer of bonds and capital from investor to the issuer. The ICT services are
helping the banks to advance their technical infrastructure and data processing procedures
that help them to take advantage of interconnected and interdependent economies.
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Resources
 Aliyu, A. A., & Tasmin, R. B. H. J. (2012). The impact of information and
communication technology on banks’ performance and customer service delivery in the
banking industry. International Journal of Latest Trends Finance and Economy, 2(1), 80-
90.
 Hilal, M. (2015). The technological transition of banks for development: new information
and communication technology and its impact on the banking sector in Lebanon.
International Journal of Economics and Finance, 7(5), 186-200.
 Roztocki, N. and Weistroffer, H.R., (2015). Information and communication technology
in transition economies: An assessment of research trends. Information Technology for
Development, 21(3), pp.330-364.
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