Commonwealth Bank welcomes the release of the fifth report by Mr Ian McPhee into the banking industry reform program launched in April last year.
Significant progress is being made to provide better products, services and outcomes for customers, and we continue to take action across a range of areas.
As Mr McPhee’s report notes, our longer term focus on customer service and satisfaction meant that we were able to implement many of the recommendations made by Mr Stephen Sedgwick AO on retail banking remuneration by 1 July this year. We will have all changes in place by the following financial year - well ahead of the industry deadline of 2020. As a result of the changes we are making, providing great service and customer outcomes will be an even stronger component of how we reward our employees.
Other key actions over recent months include:
- Implemented the new industry-wide conduct background check protocol on 1 July to stop poor conduct moving around the industry and promote positive customer outcomes;
- Held the first Customer Advocate Community Council meeting comprising of leaders from 20 groups covering social policy, community welfare, and issues advocacy;
- Simplified our small business loan terms and conditions to make it easier for our customers. For almost all of our small business loans, financial indicator covenants will no longer be included in loan contracts;
- Hosted the first in a nationwide series of face-to-face meetings between the Customer Advocate and regional community leaders in Wagga Wagga in May;
- Together with Domestic Violence NSW, we launched ‘Addressing Financial Abuse’ in June, a booklet for support workers in NSW to help affected people establish financial independence;
- Launched the CommBank Youth app in June, becoming the first bank in Australia to provide kids real-time access to their bank accounts. This secure digital banking tool is designed to help kids understand the concept of digital money and learn money skills in a fun way; and
- Committed $900,000 to support financial counselling scholarships with the Jan Pentland Foundation and training on domestic and family violence with Financial Counselling Australia.
Commonwealth Bank Group Executive of Retail Banking Services, Matt Comyn, said the release of the McPhee report today lends a sense of momentum to changes being made by Commonwealth Bank.
Mr Comyn said, “In addition to the industry reform program, we’re continuing to change our products to make them simpler for customers and we have launched new services to meet a broader range of customer needs.”