The Commonwealth Bank has sharpened its attack on National Australia Bank\u2019s title as the country\u2019s leading business bank, launching a suite of new merchant products and declaring its services now lead the pack.<\/p>\n
CBA\u2019s general manager of merchant solutions Karen Last declared CBA was now Australia\u2019s leading business bank, despite NAB still retaining the largest market share, according to recent data released by the prudential regulator.<\/p>\n
\u201cWe believe we are the leading business bank across the spectrum of products,\u201d she said. \u201cWe are laser focused on meeting customer needs. We believe new customers will be attracted to that … We certainly think we are taking a leading position.\u201d<\/p>\n
<\/p>\n
CBA general manager of merchant solutions Karen Last with group executive for business banking Mike Vacy-Lyle and Charles Wang, business owner at cafe Nevaggio.<\/span>Credit:<\/span>Louie Douvis <\/cite><\/p>\n Services for small business owners is emerging as a key battleground as the banking industry competes for returns amid historically low interest rates. NAB has long branded itself as Australia\u2019s biggest and leading business bank, but CBA has made inroads over the past 18 months beginning with a recruitment drive of 120 business bankers.<\/p>\n Chief executive Matt Comyn has expressed his desire to grow market share in the lucrative sector and in June senior executive Mike Vacy-Lyle described CBA as the \u201csleeping beast\u201d in business banking, pledging to disrupt the sector through product innovation.<\/p>\n CBA on Wednesday launched a new fleet of merchant terminals that enable small business owners to plug into two network providers and Wi-Fi to avoid restrictions on accepting payments during service outages. Next week, CBA will roll out a flat fee of 1.1 per cent for all instore transactions, slightly cheaper that NAB\u2019s 1.15 per cent starting rate.<\/p>\n Ms Last said the revamped merchant terminals were an important tool for the bank to attract new small business customers, and the new features were implemented in direct response to customer feedback.<\/p>\n \u201cIf you sit in one of our call centres and listen to calls for any duration of time, connectivity is always a key issue. You can never afford to have merchant terminals down,\u201d Ms Last said.<\/p>\n Ms Last said the merchant terminals would pave the way for its new and existing small business customers to take up additional products within the bank, like loans.<\/p>\n \u201c[It\u2019s] setting up your [transaction] account first, and then merchant facilities coming off it are at the core of any relationship we have and a key enabler actually for some of our lending propositions as well,\u201d she said.<\/p>\n The latest APRA data shows NAB retains its number one position, with 21.9 per cent of the business banking market. Ms Last said she could not discuss modelling around what impact the terminals will have on CBA\u2019s market share but added she was \u201cvery comfortable\u201d it would claw new customers away from competitors.<\/p>\n NAB\u2019s business banking boss Andrew Irvine in March brushed off concerns over competition in March, after announcing 134 new small business bankers had been hired. \u201cMore competition breeds better outcomes for customers. I welcome competition,\u201d Mr Irvine said.<\/p>\n NAB\u2019s merchant services executive Mark Raymer said in a statement he was \u201cfocused on what matters to our customers\u201d.<\/p>\n \u201cAnd they\u2019re telling us they want us to support them to ensure they can bounce back quickly, so that\u2019s what we are concentrating on with more bankers in our network, simpler and faster lending to small businesses and a simplified and competitive merchant offer,\u201d he said.<\/p>\n The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion.<\/i><\/b> Sign up to get it every weekday morning<\/i><\/b>.<\/i><\/b><\/p>\nMost Viewed in Business<\/h2>\n
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