Information Systems for Business Professionals: CBA Case Study Report

This report examines the Commonwealth Bank of Australia (CBA) case study, addressing the rollout and business benefits of Intelligent Deposit Machines (IDMs), competitive strategies employed, and how breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF) occurred. The report explores the reasons behind the implementation of IDMs, such as cost reduction, increased transaction speed, and improved security. It also delves into the competitive strategies adopted by CBA, with a focus on customer-centric approaches. Furthermore, the report explains the mechanisms through which AML/CTF breaches transpired, highlighting the role of negligence and limitations in transaction monitoring. It discusses the relevance of components such as the tone at the top, policies and procedures, monitoring and testing, and risk assessment in preventing AML/CTF breaches. Additionally, the report explores the application of agile development methodologies and data warehousing techniques for preventing data breaches and ensuring data security. The report is based on the provided references. The report aims to provide a comprehensive analysis of the CBA case study, offering insights into the business benefits, competitive strategies, and the causes of AML/CTF breaches, as well as potential solutions for prevention.

Running head: INFORMATION SYSTEM FOR BUSINESS PROFESSIONALS
INFORMATION SYSTEM FOR BUSINESS PROFESSIONALS
Name of the Student
Name of the University
Author Note:

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Table of Contents
Introduction..........................................................................................................................2
Reference 1..........................................................................................................................2
Reference 2..........................................................................................................................3
Reference 3..........................................................................................................................4
Reference 4..........................................................................................................................5
Reference 5..........................................................................................................................6
References............................................................................................................................7

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Introduction
Commonwealth Bank of Australia (CBA) is known to be an Australian Multinational
bank which has branches in a different region of the world. CBA is considered to be leading
providers of various integrated services which are inclusive retail, premium and banking
institutes, insurance and broking products. CBA is involved in a scandal which allows various
terrorists and criminals to launder lump sum amount of money. The financial agency of Australia
filled a case against CBA in the last week.
In the coming pages of the report various all the necessary six question has been
addressed. The business benefits of CBA have been discussed in details. All the competitive
strategy of CBA has been provided. An explanation has been provided that how the breach took
at that place. An explanation has been provided regarding how AML/CFT breach occur.
Reference 1
Schlagwein, D., Thorogood, A., and Willcocks, L.P., 2014. How Commonwealth
Bank of Australia Gained Benefits Using a Standards-Based, Multi-Provider Cloud
Model. MIS Quarterly Executive, 13(4).
Intelligent Deposit Machine is capable of accepting large value cash deposit. IDM is
considered to the heart of Commonwealth Bank money scandal. The bank dumped it just
because of risk and operation reasons (Schlagwein, Thorogood and Willcocks, 2014). In May
2012 CBA rolled out their intelligent Deposit machines. IDM is the type of ATM which
automatically counts the amount of cash which goes into CBA account. This machine is
convenient and saves the money of the bank as only fewer human tellers are needed.
Intelligent Deposit Machine (IDM) provides a large number of benefits like:

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Reduction of cost: Generally, a recycler is needed for doing large things like balancing
and till prepping which is cost-effective and labor saving. It ultimately allows various banks and
other institutes to move their employee to other task resulting in more effective work and saving
of money.
Increases the speed of transaction: IDM is considered to be time-effective as it reduces
the time which is spent on counting cash. With the help of this machine, the bank will allow the
employee to do another task.
Improves Security: The security in the bank can be improved by replacing cash drawers
with cash recyclers. This particular machine provides the ability to store cash in a secure
machine which improves their on-site security.
The competitive strategy of CBA is its customers which is its first priority. The
customers are considered as the heart of the organization. CBA focus on securing and improving
the financial stability of the customers (Schlagwein, Thorogood and Willcocks, 2014). It
generally focuses on the various things which are aimed to provide outstanding customer
experience.
This particular source is selected because it provided us with detail information regarding
the fact how CBA rolled out Intelligent Deposit Machine (IDM). Along with it provided us with
various business benefits of IDMs. Lastly, it provided us with strategies used by CBA.
Reference 2
Worthington, A.C., 2016. Financial literacy and financial literacy programmes in
Australia. In Financial Literacy and the Limits of Financial Decision-Making (pp. 281-301).
Palgrave Macmillan, Cham.

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AML/ CTF is a part of a legislative package which is designed to align with best
practices for preventing money laundering and terrorism facing. This particular ACT was
established in the year 2006 for stopping money laundering and terrorism. This particular Act
has been implemented which works beyond various business and financial services
(Worthington, 2016). The breach took place due to negligence on the side of CBA (Common
Wealth Bank of Australia). The bank does not provide limit the number of the transaction which
can be made by the customer in a single day. IDM allowed only 200 notes per transaction in a
single day. IDM allowed anonymous deposit of cash which ultimately created a platform for
abusing criminals. So various criminals can easily put millions of dollars through a machine in a
single day. The bank to keep a track of transaction over the given which passed through the
ATM in the last three years.
Reference 3
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
There are mainly four components which are considered to be relevant to AML/ CTF
breach are the tone of the top, policies, and procedure, monitoring and testing and risk
assessment.
Tone on the top: Leaders of CBA should give priority in popularizing the culture of
AML/CFT by providing an example for other organization (Lovelock and Patterson, 2015). An
organization should empower their employees and make them feel like a part of the organization.
The organization should incentive to the organization if they will report any kind of suspicious
transaction.

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Policies and procedure: It is considered to be an important part of AML/CFL program.
Policies can easily check any kind of issues or behavior which is earned by the organization. So,
this policies and procedure are developed, updated and lastly implemented on regular basis
(Lovelock and Patterson, 2015). For dealing with the various allegation of AML one need to
have a specialized response team which is useful for dealing with the allegation in the much
better way.
Monitoring and Testing: White-collar criminals are educated and come up CBA should
be committed to testing its programs on regular basis. It can be achieved to plan an exercise
conducted on two platforms that are internally or externally. The review should be done without
any conflict of interest.
Risk assessment: It is an important feature will help a various organization like CBA to
have an idea regarding the impact on AMT/CFT goals. The ultimate goal of risk assessment is to
analyze the fact that how risk assessment can be done in a much better way.
This particular source is selected because of it provided us the four components which are
considered to be relevant to AML/CTF breaches.
Reference 4
Serrador, P. and Pinto, J.K., 2015. Does Agile work? —A quantitative analysis of
agile project success. International Journal of Project Management, 33(5), pp.1040-1051.
The organization should make various layers which are used for building up traditional
method of projects that is waterfall model (Serrador and Pinto, 2015). CBA claims the fact their
culture has grown which has result in delivering possible outcomes and the needs of the market.

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The market is changing at a much faster rate because of the need of customers. Properly working
on agile provides a way which helps in making a decision in a quick way.
This particular source has been selected because it provides us with detail idea regarding
the fact that how agile development methodology can help to prevent any kind of breach in
CBA. Apart from agile methodology, the source provided us with methods which can be used
for preventing a data breach.
Reference 5
Blake, L., Francis, V., Johnson, J., Khan, M. and McCray, T., 2017. Developing
Robust Data Management Strategies for Unprecedented Challenges to Healthcare
Information. Journal of Leadership, Accountability, and Ethics, 14(1), pp.22-31.
Data warehousing is a well-known technique which is used for the collection and
management of data from various sources (Blake et al., 2017). It helps in providing meaningful
insight into the business. This particular technology is a well-known component which helps the
strategic use of various data. In other words, a large amount of information by a business that is
used for designing query and analysis of the transaction. It mainly focuses on the transformation
of data into information and making it available to users.
Data warehouse mainly ensures the fact that sensitive kind of data does not fall on the
hand of wrong people. If some vital data falls on the hand of people, then it can easily lead to a
malicious attack. Data security mainly focus on three important aspects that are confidentiality,
integrity and lastly availability.
This particular source has been selected because it provides the possible ways of a data
warehouse which can be used for mitigating any kind of breach.

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References
Blake, L., Francis, V., Johnson, J., Khan, M. and McCray, T., 2017. Developing Robust Data
Management Strategies for Unprecedented Challenges to Healthcare Information. Journal of
Leadership, Accountability, and Ethics, 14(1), pp.22-31.
Booth, S. and Whelan, J., 2014. Hungry for change: the food banking industry in
Australia. British Food Journal, 116(9), pp.1392-1404.
Goswami, R., Bhattacharyya, D.K., Dutta, M. and Kalita, J.K., 2016. Approaches and issues in
view selection for materialising in data warehouse. International Journal of Business
Information Systems, 21(1), pp.17-47.
Lees, G., Winchester, M. and De Silva, S., 2016. Demographic product segmentation in financial
services products in Australia and New Zealand. Journal of Financial Services Marketing, 21(3),
pp.240-250.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Reddy, K. and Clinton, V., 2016. Simulating Stock Prices Using Geometric Brownian Motion:
Evidence from Australian Companies. Australasian Accounting, Business and Finance
Journal, 10(3), pp.23-47.
Schlagwein, D., Thorogood, A., and Willcocks, L.P., 2014. How Commonwealth Bank of
Australia Gained Benefits Using a Standards-Based, Multi-Provider Cloud Model. MIS
Quarterly Executive, 13(4).
Serrador, P. and Pinto, J.K., 2015. Does Agile work? —A quantitative analysis of agile project
success. International Journal of Project Management, 33(5), pp.1040-1051.

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Wang, Y., Kung, L. and Byrd, T.A., 2018. Big data analytics: Understanding its capabilities and
potential benefits for healthcare organizations. Technological Forecasting and Social
Change, 126, pp.3-13.
Worthington, A.C., 2016. Financial literacy and financial literacy programmes in Australia.
In Financial Literacy and the Limits of Financial Decision-Making (pp. 281-301). Palgrave
Macmillan, Cham.