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Commonwealth Bank Of Australia Case Study

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The Commonwealth Bank of Australia (CBA) began the change of removing the need for a person to hunt down their own bank’s ATM to avoid a two-dollar fee to withdraw their cash. Why has the change been made now of all the years there has been a fee? There were more than two-hundred and fifty million withdrawals across all Australian banks by non-customers last financial year, this means that $500 million dollars were made over the course of one financial year (Hawk 2017). CBA began the decision to ditch ATM fees charged to customers of other institutions, Westpac Banking Corporation taking the leap soon after, with Australia and New Zealand Banking Group Limited (ANZ) right behind them. National Australia Bank (NAB) was the last of the big four …show more content…

Banks have claimed their returns from the machines are dwindling as they are spending more money on maintenance for the ATMs which are being used less every year as the country inevitably continues to a cashless economy (Snow 2017). Since the announcement was made, CBA has seen a 24% increase in non-customers using its machines (Chung 2017). This may positively affect the profits of the business as the use of ATMs grows from the fee removal. Showing that the agent (CBA management) have acted in the interest of its principal …show more content…

They will begin to be accepted in the Australian society which is one of the primary focuses of a business (Pitroff 2014). Due to the CBA being the first company to make the change in the Banking industry and removing the ATM foreign fees, this will be one of the reasons an existing or new customer may consider joining Commonwealth Bank of Australia as they will be seen as the business who are the pioneers in making changes which benefit Australians. As the business is viewed as a bank that is superior in terms of meeting society’s demands, this can lead to consumers of other banks making the move to a community friendly bank. In terms of the legitimacy theory, there is a positive impact on an organisation when there is an objective to meet social expectations (Chen 2010). This spontaneous decision made by the Commonwealth Bank of Australia will lead to an improvement in their ATM usage, corporate social responsibility and media

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3. The respondent, Mr Stephen Barker, had been employed by the appellant, Commonwealth Bank of Australia, for a number of years before being made redundant in March 2009 as a result of the bank restructuring the Corporation Financial Services (“CFS”) teams throughout the bank. He was informed that his employment with the bank would be terminated if he wasn’t redeployed within four weeks, but in the meantime had to turn in keys, mobile phone, and his access to his company email account, voicemail, and intranet was cut off and as such he did not receive any of the numerous emails that were sent to him about different openings for redeployment. His employment with the bank was terminated after the four week (plus an extra week for being over the

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The Commonwealth Bank of Australia (CBA) is one of the biggest banks in Australia with nationally having over 4300 ATM’s, 3700 Australian post agencies and 1100 branches resulting in the CBA operating the largest of financial services distribution network in the country. The CBA also have over 4.6 million online customers and are the first bank in Australia along with one of the first few banks in the world to be able to transact at any hour in real time. The CBA was established in 1911 by an act of parliament called ‘The Commonwealth Bank act’ and began operations in 1912. When first established, there was only one bank which was located at 317 Collins Street Melbourne.

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Westpac bank is a transnational financial service company that was found in 1817; it is one of the four major banks in Australia. Its retail banking sector provides transaction account, saving and cheque account, credit card and mortgage loan. It also supplies investment products, insurance products and annuity in business banking service. In addition, it provides investment management, mortgage loan, broking products, life insurance and annuity to customers nowadays as one part of wealth management sectors. In December 2008, Westpac merger St George with $ 18.6 billion, and become the largest bank in Australia.

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In Australia, there are four biggest banks such as Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), Westpac Banking Corporation (Westpac), and Australia and New Zealand Banking Group (ANZ) which hold more than eighty percent of loans. Westpac, the oldest bank among the big four banks in Australia, currently faces the regulatory capital requirements by reserve bank of Australia, competitive environment and raised criticism of how clients have been treated. In order to response with these changes, the Westpac’s management concentrates on productivity, building trust, efficiency of capital, leadership strategy, customer satisfaction, wealth controlling system, and refinement of business models that can provide a competitive advantage in the long term. Westpac, which has been the oldest bank among big four Australia banks, was established in 1817 under the name “Bank of New South Wales”.

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In several articles, and for one on the Bloomberg in September 2007, which titled “Barclays takes a money beating”, firstly, the journalists observations was that Barclays was submitting USD Libor rates consistently higher than other banks and lastly, that Barclays had approached the bank of England for overnight funds, a number of times in the previous night. This was of course, so that they could use the Libor calculation process to signal to the market that their operating costs are lower (healthier) than they really were. The inquiry into Libor manipulation at Barclays (CFTC Barclays, 2012) noted that, after senior management discussions, Senior Barclays Treasury managers instructed the USD Libor submitters and the supervisor to lower Barclays Libor submissions, so that they were closer in range to the submitted rates by other banks but not so high as to attract media attention. Although such an order won’t comply with the BBA rules for submitting Libor rates, it would be expected such a rule would be a normality at Barclays, as one of its senior managers sat on the BBAFX&MMC committee at the time. Over the next few months, Barclays lowered its Libor submissions, not only in USD but also other currencies, and titled it as strategy called “no head above the parapet” also referred to as “low-balling” (FSA Audit 2013).

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