CBA share price higher on customer experience update

The Commonwealth Bank of Australia (ASX: CBA) share price is rising on Tuesday morning.

At the time of writing, the banking giant’s shares are up almost 1% to $104.20.

Why is the CBA share price rising?

Today’s gain by the CBA share price could have been driven by the release of an update this morning from Australia’s largest bank.

According to the release, CBA is taking the next step in reimagining banking for customers. This will see the bank focus on building new and innovative customer experiences.

CBA’s CEO, Matt Comyn, explained:

Driving digital innovation for our customers is core to our strategy. This is all about reimagining what it means to be a bank, and the ways in which a bank can anticipate and meet customer needs.

We seek to be the trusted centre of our customers’ financial lives, using technology to build the best integrated and personalised digital experiences to suit all the ways our customers interact with us. Our strategy is to broaden and deepen our distinct and highly differentiated proposition to give customers more reasons to bank with the Commonwealth Bank.

Digital home loan launch

From today, CBA launching a new digital home loan, Unloan, which provides one, simple, low cost interest rate.

The release notes that owner-occupiers who refinance to Unloan will pay an interest rate of 2.14% (2.06% comparison rate) and investors 2.44% (2.36% comparison rate).

Digital applications take as little as ten minutes and customers receive a loyalty discount that grows by 0.01% p.a. every year, up to 30 years.

Mr Comyn revealed that the bank made the move in response to the “growing number of Australians [that] are ready to consider a digital home loan that’s easy to get and more rewarding to live with.”

Kit app launch

CBA is also launching a money app and digital information tool for kids, Kit. This aims to help kids learn about money, how to save, how to budget and how to manage their spending.

The bank highlights that with their own Kit account and prepaid card, kids can manage their own earning, saving, and spending through fun, experiential learning.

Kids can earn money on ‘chores PayDay’, create savings ‘Stacks’, access their money through an ATM and tap their card to make purchases. Whereas in Boss Mode, parents have access to sophisticated controls such as spend limits and card and PIN protection, which can be tailored to each child in the family.

CommSec in the CommBank app

CBA also revealed that it is planning to make Australia’s leading digital stockbroking service, CommSec, available in the CommBank app.

Mr Comyn revealed that the company is making the move in response to customer feedback. He commented:

With active CommSec online investors more than doubling over the past two years, from 750,000 in December 2019 to 1.52 million in November 2021, our customers have told us they want a simple, safe way to invest in equities and other asset classes, using a reliable platform from a trusted institution with sophisticated functionality made easy.

Yello customer recognition launch

A final initiative that CBA has announced is the launch of is CommBank Yello. It is a new recognition program that better rewards customers with specific, personalised benefits and offers.

The release advises that Yello will be available to more than six million retail customers with a banking account, with benefits tailored to customers depending on their products and tenure with the bank.

CBA intends to provide a range of benefits that will evolve over time, including discounts, cash backs and additional services and tools to recognise its existing customers. The recognition program will be progressively rolled out to our customers later this year.

Mr Comyn concludes:

With CommBank Yello there are no tiers, no statuses and no need to spend more. We simply want to recognise customers for the depth and duration of their relationships with us by offering them tangible value and ways to save. It’s our way of thanking customers for continuing to bank with us.

The post CBA share price higher on customer experience update appeared first on The Motley Fool Australia.

More reading

• Here’s why the CBA share price could soon be in for some pain
• This is the best ASX bank share to buy in a rising rate environment: Citi
• Top brokers name 3 ASX shares to sell today
• Inflation to ‘peak shortly’: CBA boss says markets have priced in too many rate rises
• Broker says the CBA share price is expensive and a sell

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/kJAaHvG