Expanding its suite of data-driven products, CommBank iQ introduces Council iQ and Destination iQ. These platforms aim to help local governments and tourist areas analyze residents’ and visitors’ spending behavior, enabling them to assess the financial risks and rewards associated with hosting various events.
David Watts, Executive General Manager of Commonwealth Bank’s Quants, Data, Analytics, and Technology team, explained that Council iQ and Destination iQ empower local governments by offering a profound understanding of spending habits within their respective areas. He emphasized the importance of assessing the impact of events such as music festivals in terms of their contribution to GDP and overall spending.
Destination iQ provides corporate clients of Commonwealth Bank with the ability to assess the time-specific impact of events and create visitor profiles. By paying for access, the bank’s customers can tailor these insights according to their specific requirements.
This strategic move by Commonwealth Bank signifies its commitment to expanding its services beyond mere transactions, as it competes with other banking institutions for a larger share of the business finance market. Through CommBank iQ, the bank aims to provide its institutional customers with actionable insights that can significantly enhance their decision-making capabilities.
UBS Analysis Highlights Growth Opportunities for Commonwealth Bank
According to a recent UBS analysis in September, Commonwealth Bank’s business bank has significant potential to expand its earnings, especially in light of the competitive pressures in retail banking. The analysis suggests that agribusiness and small business lending are two particular areas where growth opportunities lie. If the business bank were to operate independently, it could be valued at around 69 billion Australian dollars (US$44.9 billion).
Commonwealth Bank’s foray into putting a commercial value on analytics is a new venture for the organization. This endeavor has not only ensured the quality of insights but has also opened up opportunities for a range of different conversations. Neil Watts, an executive at Commonwealth Bank, expressed, “It gives us another area where we can say…we can help you with lots of different things. We can assist you with strategic decisions and provide valuable insights.”
The demand for data services and advice offered by banks is growing, as it enables stronger and more loyal customer relationships. Danielle Malone, National Partner-in-Charge, Data & Cloud, KPMG Australia, emphasized that corporate customers now expect this benefit, and the larger the customer, the higher the expectation. Banks that fail to deliver a data and analytics service risk falling behind rapidly in the ever-evolving market.
Commonwealth Bank clients are currently utilizing Council iQ and Destination iQ, among other products tailored for the property, retail, and government sectors. Additionally, CommBankIQ, part of Commonwealth Bank’s offering, leverages predictive data and AI to assist groups with decision-making.
In conclusion, UBS’s analysis sheds light on the growth opportunities available to Commonwealth Bank’s business bank. By emphasizing data services and analytics, Commonwealth Bank can foster deeper customer relationships and remain at the forefront of the evolving banking landscape.