A digital home loan is among a batch of new initiatives from CBA
CBA CEO Matt Comyn yesterday unveiled a batch of new initiatives, including a digital home loan, a money app and digital information tool for kids, a new recognition program and making CommSec available in the CommBank app.
“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,” Comyn said yesterday.
“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 CBA.”
Unloan, CBA’s digital home loan, Unloan, provides one, simple, low-cost interest rate.
Owner-occupiers who refinance to Unloan will pay an interest rate of 2.14 per cent (2.06 per cent comparison rate) and investors 2.44 per cent (2.36 per cent comparison rate). Digital applications take as little as ten minutes and customers receive a loyalty discount that grows by 0.01 per cent p.a. every year, up to 30 years.
Customers looking to refinance their properties up to a value of $3 million and up to 80 per cent of their value can start applying now.
Comyn explains: “As customer expectations continue to change, we know a growing number of Australians are ready to consider a digital home loan that’s easy to get and more rewarding to live with. And, just as importantly, backed by a brand they know and trust. By bringing together the pace and innovation of the start-up world with the scale and assets of Australia’s leading bank, we've reimagined what a home loan can look like."
CBA is also piloting Kit, a money app and digital information tool for kids, aimed at helping them learn about money, how to save, how to budget and how to manage their spending.
With their own Kit account and prepaid card, CBA says kids can manage their own earnings, 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. 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.
Kit is in pilot with up to 5,000 customers and has been built with the help of kids, parents and caregivers along with an independent advisory panel of experts in youth mental health and wellbeing, digital services for children and families, artificial intelligence and financial capability.
In a further initiative, CBA also launched CommBank Yello, a new recognition program that it says better rewards customers with specific, personalised benefits and offers.
CommBank 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, whether they are a homeowner, investor or everyday banking customer. Each customer will have different eligibility criteria and the benefits are tailored to provide maximum relevance and value to our customers.
CBA will provide a range of benefits that will evolve over time, including discounts, cash backs and additional services and tools to recognise our existing customers.
Initially available to Homeowner and Homeowner Plus customers, benefits include a $120 annual cashback on home insurance, exclusive shopping offers and discounts on home-related purchases.
Also on offer are reports on property trends tailored to their areas as well as the chance to win prizes like a $1200 contribution available each month to go towards their home.
Meanwhile, CBA’s stockbroking service, CommSec, will be available in the CommBank app. Starting with CommSec Pocket, the first CommSec offering to be integrated, customers will be able to access and transact on their investment accounts directly through the CommBank app with one simple log-in.
“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,” says Comyn.