Good afternoon, and welcome to day 527.
Today in summary: CBA boss Matt Comyn has vowed to fix mistakes faster and cut fees; Australian superannuation assets are up 6.7% to A$2.78 trillion; and banks are competing for a greater share of housing loans in a subdued market.
-- Alex
@AlexESampson
Current banker panic level: 😇🤑🤑
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CBA boss Matt Comyn, in his first major speech since being appointed to the role more than a year ago, told a business lunch today that restoring community trust would require putting customers first. Comyn has vowed to implement systems which fix mistakes faster and run an overhaul of the customer experience, including by cutting fees, something NAB has already committed to doing.
Comyn announced the bank would relaunch the CommBank app, which he said gave users the first “completely personalised and smart digital banking experience in Australia”, backed by machine learning technology.
SMH | The Australian | AFR
Total Australian superannuation assets are up 6.7% from A$2.6 trillion in March 2018 to A$2.78 trillion in March 2019, according to the latest APRA superannuation statistics, released today. APRA regulates A$1.83 trillion of these assets. MySuper makes up A$713.4 billion and self-managed super makes up A$746.6 billion.
This comes after Treasurer Josh Frydenberg last week told the AFR a review of the retirement income system was on the cards and indicated the Morrison government was likely to revisit plans to enforce more independent industry fund boards, reducing the representation of union and employer groups.
Banks are competing for a greater share of housing and business loans in a subdued market. NAB’s digital subsidiary UBank is looking at tech that would see chatbots help customers fill out loan forms.
Meanwhile, Westpac Group is offering rate discounts to lure potential customers, increasing discounts by as much as 10 basis points for borrowers with deposits of up to 40%. It is also offering improved terms for relocation and building loans.
CBA chief Matt Comyn today told a business lunch that the number of borrowers seeking home loans from the bank had surged to its highest level in more than six months following the Coalition's re-election. CBA will compete in the tight space by increasing investment in digital technology to claw back market share from fintechs.
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Today’s burn prize: CBA chief executive Matt Comyn
“When you’ve got customers preferencing death over the cessation of a product or service, it feels like a pretty difficult area to go after.”
At a business lunch in Sydney Comyn said customers had warned they hoped they would died before CBA took away their passbook accounts. Comyn said the bank had tried for a decade to help customers transition from the passbook, but resistance was strong among more than 400,000 “very loyal” customers, who wanted to keep the product. His comments were part of talk on overhauling the bank’s systems, including offering cheaper products, at the Trans-Tasman Business Circle lunch today.
The Commentariat
Suncorp faces a tough period, including potential profit downgrades and a decision on splitting its business, after ditching its chief executive Michael Cameron, writes senior banking reporter Joyce Moullakis in The Australian.
“Some investors had wanted to see a clearer growth plan, a proactive stance on mergers and acquisitions and the potential spin-off of Suncorp’s bank. But Suncorp’s shares closed 2.2% lower yesterday at A$13.60, as investors were unnerved by the CEO announcement and a clouded statement on earnings prospects.”
Sky News business editor Ticky Fullerton writes in The Australian that class warfare has shifted to superannuation as a campaign grows to rein in industry funds.
“The new Morrison government is to reignite the battle for independent boards. The shock Morrison victory was a clear blow for industry fund leaders: the faces said it all.”
Companies, markets and economy commentator Elizabeth Knight writes in the SMH that CBA chief Comyn plans to spend A$5 billion to lure customers by “aggressively pursuing” technology development.
“While still spending huge resources and significant time dealing with the costs of poor behaviour that dog the big banks, CBA’s chief executive, Matt Comyn, has used his 'one year in the job’ speech to send a message that the bank wants to regain its footing, secure its leading market share and beef up its credentials as sector-leading in digital technology.”
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