The focus on innovation is part of the DNA of Australian banks that, as highlighted in this report by BBVA Research, continue to grow thanks to their disruptive and technological mentality.
What are Australian banks doing to grow so fast? The secret is the importance given to the digital sector as emphasized by the study by BBVA Research. An easy predisposition in a country where more than 65% of Australians have a smartphone, Internet penetration rate is high (85%) and it has one of the highest levels of contactless payments in the world. A digital and entrepreneurial ecosystem that banks leverage to grow.
As highlighted by the publication, the four largest banks (Commonwealth, Westpac, NAB and ANZ) generally have similar business models and they all share the following:
- Digital innovation is crucial to meet increasingly demanding customer needs.
- The irruption of digital technology is also changing the competitive landscape, as barriers to entry of new players are reduced.
- Investing in innovation is essential even at the expense of lower profits in the short term.
Banks have been quick to understand the need to stay ahead of customer needs. Australian banks have been pioneers (or the first users) of Internet banking, mobile banking, cloud computing, contactless payments and the continued development of user-friendly applications for their customers.
Customers may request a number of banking products through their mobile banking apps in a matter of minutes. The aim is to simplify processes and products while it is common to see bank communications that refer to service, customer satisfaction and the need to develop deeper customer relationships as being central to their strategy.