CBA records a surge in Millennials opening business accounts
New research from Commonwealth Bank has revealed that the number of millennial small business owners has skyrocketed.
The number of new CBA business transaction accounts surged 36 percent over the past six months, with Millennials driving most of the growth.
Millennials accounted for 57 percent of all new business accounts in the last 6 months – up from 43 percent in 2015. Gen Z opened a further 10 percent of new accounts.
Today, the average age of those opening a CBA business transaction account is 38 years, in comparison with 44 years in 2015, CBA said.
The research also revealed that the proportion of millennials running a “side hustle” has increased by 40 percent over the past year.
“Economic uncertainty had motivated many Australians – particularly millennials – to come up with business ideas and ultimately kick-start a side hustle,” said Claire Roberts, head of small business banking.
“While it’s been a challenging year for many small businesses, the pandemic did present entrepreneurs with the time and opportunity to start a small business as a passion project or as an alternate source of income and we’ve seen many of our new business customers skewing younger,” she added.
Interest free card
In addition, CBA has launched a new credit card for business customers. The CommBank Neo Business card provides them with up to $3,000 of credit, with no interest, no late fees, and no foreign currency fees for a fixed monthly fee.
Customers will be refunded their monthly fee if they have no purchases in a month and the card balance is zero.
Aside from providing small business owners with some level of financial certainty - which will help with their budgeting - it also makes managing the books easy since they can automatically share spend data with accounting software.
CommBank Neo Business customers will also be able to access cashback offers from 100+ Australian retailers through CommBank Rewards, CBA said.
Originally launched to retail customers in September 2020, CommBank Neo has seen strong uptake amongst younger customers who are looking for greater flexibility and certainty with credit products.