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· Posted on
February 21, 2024

CBA is getting its gloves out in the fight against challenger fintechs

CBA (and the other big banks) have kindaaa been caught sleeping over the last few years. But consider this your 6am alarm, cos CBA just woke up.

What's the key learning?

  • Commonwealth Bank Australia is releasing new payment terminals and a new dongle to accept payments
  • It's all part of CBA's plan to fend off fintech challengers. Think: Square, Afterpay, Raiz...
  • CBA is challenging these companies with its own buy now, pay later product, CommSec Pocket and now, a snazzy payments terminal.

Background: CBA is the biggest of the Big 4 banks. It has nearly 16 million customers in Australia. And of those customers, they have around 1 million business customers. 

What happened: CBA (and the other big banks) have kindaaa been caught sleeping over the last few years. But consider this your 6am alarm, cos CBA just woke up.  

What else: CBA reckon they’re going to challenge the challengers head on. So, they're releasing new payment terminals and a new dongle to accept payments (take that, Square). It’s all part of CBA’s plan to fend off fintech challengers.

So what's the key learning?

💡You can’t win by only focusing on defence, you gotta think about offence too. Over the last 10 years, the Big 4 banks have watched on as innovative companies have entered the banking and lending space.

💡Now, CBA is challenging them all:

  • It created it's own buy now, pay later product (and invested in Klarna) to compete with Afterpay and Zip.
  • It created CommSec Pocket to take on Raiz and Spaceship in micro-investing

💡And now they’re trying to hold onto their business customers with a snazzy payments terminal. Only time will tell if they've left their run too late.

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