CBA boosts tech spending

Chief executive Matt Comyn indicated a 2019 commitment to spend more than $5 billion over five years would increase to more than $6 billion

The Commonwealth Bank has flagged a lift in its technology spending, as it faces a wave of competition from fintech rivals and looks to cement its key position in customers’ financial lives.

Chief executive Matt Comyn on Thursday indicated the bank’s technology spending was ramping up, such that a 2019 commitment to spend more than $5 billion over five years would increase to more than $6 billion.

I think you can probably reasonably conclude from the conversation today that we’ve got a bold ambition in this space, and it’s going to require investment, Mr Comyn said at CBA’s tech hub in South Eveleigh, Sydney.

We think we come with some very strong capabilities, but there’s a lot happening in the broader context both domestically and internationally, and we certainly intend to increase our investment in technology and digital particularly, he said.

Mr Comyn told the media briefing the pandemic had sped up a move among customers towards digital banking, and CBA would be accelerating its digital strategy, part of which is a long-term partnership with Afterpay rival Klarna.

He flagged the investment boost as the bank — seen as the tech leader among the big four — said its ambition was to provide customers with digital experiences close to world-leading companies.

Mr Comyn made the comments following a presentation on technology that also included its executive general manager of everyday banking Kate Crous, managing director of X15 Ventures Toby Norton-Smith, and the local head of Klarna, Francine Ereira.

CBA said Klarna, a buy now, later (BNPL) business in partnership with the bank, had reached 575,000 customers and it had signed up 400 retailers including fashion groups Country Road, Hanes Group and General Pants Co. There have long been predictions BNPL businesses will be regulated, and Mr Comyn repeated his view that he thought these firms were providing credit, and regulation was “inevitable but not imminent”.