Privatisation (1991) and subsequent developments

The Commonwealth Banks Restructuring Act of 1990 converted the Commonwealth Bank from a statutory authority to a public company with conventional share capital and part-Government ownership. On 17 April 1991, the organisation became a public company with a share capital governed by the Corporations Law but subject to certain overriding provisions of the Commonwealth Banks Act 1959. The Commonwealth Bank was fully privatised in three stages from 1991 until July 1996.

Focus on customer service

In 1992, the majority of processing functions were removed from branches, giving our people the opportunity to focus exclusively on customer service and sales. Customer Service Centres were opened Australia-wide in capital cities in 1993-94, providing a telephone ‘Hotline’ for dealing with customers’ banking inquiries. The Customer Relationship Model (CRM) was introduced into branches from August 1994, featuring a uniform branch interior design and new ways of interacting with customers. The Which New Bank (2003) program aimed at “great customer service, engagement of people and simplified processes”. Weekend trading has been re-introduced in selected branches (Saturdays from 2007 and Sundays from 2008). In September 2005, customer service was made a strategic priority by the recently appointed Chief Executive Officer, Ralph Norris.

Advances in technology

New information technologies also impacted our interaction with customers. A computerised customer service program, ASSIST, was initiated in May 1992. CommSee, the Commonwealth Bank’s new customer service system, began by supporting our premium customers and has developed as a relationship management service model aimed at providing a single view of dealings with individual customers, accessible from any branch across the network. In December 2003, a decision was made to implement CommSee across the organisation with the national rollout completed in December 2005.

Automated banking

The Maestro and Cirrrus services were introduced in April 1993, enabling worldwide EFTPOS, keycard and credit card transactions. The Commonwealth Bank’s internet site was launched on 29 September 1995 and, on 28 February 1997, NetBank was launched as a totally online service, offering 24-hour internet transaction banking services. Commonwealth Securities Limited (CommSec), a new stockbroking company, was established on 25 July 1995, initially as a low-cost telephone based service – by 2003, 85 per cent of its brokerage business was online. CommBiz – an online electronic transactional banking channel for institutional, corporate and business customers – was launched on 13 November 2006.

Widening the customer base

Institutional Banking was established in 1990 and drew together the Commonwealth Bank’s various ‘wholesale’ activities under one unit and provided a more focused approach to larger organisational and corporate customers. In the early 1990’s, Retail Banking was split into Business Banking and Personal Banking. As services broadened to include insurance, funds management and related products and services, the Commonwealth Bank has become a financial services institution in the broadest sense.

Colonial merger (2000)

 In June 2000, the Commonwealth Bank acquired the Colonial Group of companies which provided us with a well-established asset management capability, strong distribution breadth, a pre-eminent wealth brand, and a leading life insurance and property position in the market. A new Investment & Insurance Services division was established in 2002 to incorporate the Colonial brand of companies which included managed funds, master funds, superannuation and insurance products, as well as the support of third party financial planners.

The Commonwealth Bank’s restructure of 2002 provided niche markets for our premium and business customers as well as broader institutional customers. In May 2004, the premium and institutional banking segments were combined into a new business. In that same year, Private Client Services became Commonwealth Private Bank. Since 2006, one of the key priorities for our strategic vision has been to expand business banking.

Expansion into Asia

In February 2002, International Financial Services was established to unite numerous offshore operations within the one division and to leverage our existing expertise into target global markets. Products also included Asian insurance and New Zealand and the Pacific banking and insurance. By 2005, the Commonwealth Bank’s regional expansion strategy was focused on the Asia-Pacific, particularly China, India, Indonesia and Vietnam, where the demand for financial services was experiencing particularly rapid growth. This expansion was illustrated in 2005 by joint ventures with two Chinese banks – the Jinan City Commercial Bank and the Hangzhou City Commercial Bank in March/April – and the opening of a representative office in Bangalore, India in June. In January 2008, the merger of PT Bank Commonwealth and Indonesia’s Bank ANK was completed. Also in 2008, the first Commonwealth Bank branch in Ho Chi Minh City (Saigon) opens its doors.