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The Commonwealth Bank of Australia (ASX: CBA) The stock price rose on Tuesday morning.
At the time of writing, the shares of the banking giant have risen by almost 1% to $ 104.20.
Why is the share price of the Central Bank growing?
Today’s increase in the value of CBA shares could be due to the issue update this morning from Australia’s largest bank.
According to the release, the CBA is taking the next step in transforming the banking industry for customers. This will allow the bank to focus on creating new and innovative experiences for customers.
CBA CEO Matt Comin explained:
Attracting digital innovation for our customers is at the core of our strategy. It’s all about rethinking what it means to be a bank and the ways a bank can anticipate and meet customer needs.
We strive to be a reliable center of our customers ’financial lives, using technology to create the best integrated and personalized digital experience to meet all the ways our customers interact with us. Our strategy is to expand and deepen our clear and highly differentiated offerings to give customers more reasons for banking at Commonwealth Bank.
Launch of a digital home loan
As of today, the CBA is launching a new digital home loan Unloan that provides a single, simple, cheap interest rate.
The release notes that Unloan refinancing owners will pay an interest rate of 2.14% (comparative rate 2.06%) and investors 2.44% (comparative rate 2.36%).
Digital apps take just ten minutes, and customers receive a loyalty discount that grows 0.01% per annum each year, for up to 30 years.
Mr Comin said the bank took the move in response to “an increase in the number of Australians [that] are ready to consider a digital home loan that is easy to obtain and more useful to live with. ”
Launch Program Kit
CBA is also launching an app for money and a digital information tool for Kids Kit. It aims to help children learn about money, how to save, how to budget and how to manage their expenses.
The bank emphasizes that with their own Kit account and prepaid card, children can manage their own salaries, savings and expenses through fun learning.
Kids can earn money on ‘Chores PayDay’, create savings ‘Stacks’, access their money through an ATM and click on their card to make purchases. While in boss mode parents have access to perfect controls such as cost limits and protection of cards and PINs that can be customized for each child in the family.
CommSec in the CommBank application
The CBA has also revealed that it plans to make Australia’s leading digital exchange brokerage service CommSec available in the CommBank app.
Mr. Comin revealed that the company is taking this step in response to customer feedback. He commented:
As CommSec’s active online investors have more than doubled in the last two years, from 750,000 in December 2019 to 1.52 million in November 2021, our clients have told us they want an easy, secure way to invest in stocks and other asset classes using a robust platform with a reliable institution with sophisticated functionality.
Launch Yello customer recognition system
The latest initiative announced by the CBA is the launch of CommBank Yello. This is a new recognition program that better rewards customers with specific personalized benefits and offerings.
The release said Yello will be available to more than six million retail customers who have a bank account, with benefits designed for customers based on their products and experience with the bank.
The CBA intends to provide a number of benefits that will evolve over time, including discounts, refunds, and additional services and tools to identify its existing customers. The recognition program will be gradually extended to our clients later this year.
Mr. Comin concludes:
With CommBank Yello there are no levels, statuses and no need to spend more. We just want to commend customers for the depth and duration of their relationship with us, offering them tangible value and ways to save. This is our way of thanking customers for continuing to work with us.