Commonwealth Bank of Australia improves its mobile banking application

The upgrade of the Commonwealth Bank of Australia (CBA) offers greater customization to its customers via machine learning, in-depth data badysis and behavioral science, reports Finextra.

The new app, dubbed "CommBank App 4.0", introduces new features such as notifications when a subscription fee increases, tips on using money tax returns, alerts fraudulent transactions and the ability for customers to choose the location of their mobile phone. followed, allowing the CBA to more easily identify fraudulent transactions.

The time has come for Australian banks to reorganize their mobile phone offer, while Australians active in the digital arena are becoming more comfortable with financial technology services. A strong majority (58%) of digitally active Australian consumers are now using Fintech products and services – a significant leap from 37% in 2017, according to the EY Global Fintech Adoption Index Index 2019 cited by Business Insider Australia.

And, with the growing adoption of fintech services, neo-banks are seeking to provide digital tools that technology-savvy consumers can use to manage their finances. Three of these neo-banks – 86,400, Volt and Judo – pose a particularly serious threat because they have received a full banking license.

86,400 and the Volt, in particular, attach great importance to helping individuals manage their finances by offering digital tools to increase savings and control expenses. The growing adoption alongside new competitors forces incumbents to offer digital tools that consumers want to avoid losing market share.

Australia is likely to see more and more major banks modernizing their savings and spending to stay competitive. Australia has four major banks – ANZ Banking Group, Westpac Banking Corporation, National Australia Bank and CBA – which collectively accounted for over 75% of the market for most financial services in 2018.

And if one of them adds mobile app features that customers love and embrace, others will do the same to avoid falling behind. Overall, Australian banks could be advised to improve their digital services: while historic financial institutions have begun to embrace financial technologies, their current offerings lag behind other markets, Meredith Angwin, Fintech advisor at EY Australia, quoted by Business Insider Australia.

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