Speaking at a luncheon in Sydney this week, CBA group executive of institutional banking and markets Kelly Bayer Rosmarin said digital disruption is not something that is on the horizon – it is already here.
“If I have a look at how our customers interact with us, you go back five years and a lot more transactions occurred in a branch or maybe online,” Ms Bayer Rosmarin said.
“Now, upwards of 65 per cent of our transactions occur on a mobile phone or iPad in a mobile way,” she said.
The financial services industry is already changing shape, said Ms Bayer Rosmarin, adding that an organisation such as CBA is “very well placed to lead that disruption”.
“Obviously I think CBA is doing a great job of that in the technology space and it comes down to a culture that is not complacent, that is not in denial and that doesn’t rely on regulation or other things for its competitive advantage, but rather a culture that is completely focussed on customer service and adding value to customers,” she said.
Responding to Ms Bayer Rosmarin’s comments, fellow panellist and AMP digital director Michael Weeding said there is a big difference between innovation and responding to disruption.
“I think most organisations are very challenged to respond to disruption,” Mr Weeding said.
“The reason I say that is because disruption usually occurs at the lower end of the market, where the margins are small,” he said.