ENVIRONMENTAL ANALYSIS OF COMMONWEALTH BANK

Introduction
In 1911, Commonwealth Bank of Australia (CBA) is the major financial establishment among the country founded by government and it started operating in 1912 both as saving and general bank (www.banks.com.au). The Commonwealth Bank of Australia is one of Australia’s driving monetary organizations. So customer feel consoled that their funds will be in safer hands. It is leading provider of integrated financial service like retail banking, superannuation, insurance, investment etc. Their main purpose is securing and enhancing financial status of people (www.banks.com.au). Future goal includes providing customer with superior offering at lower cost through key growth businesses like internet based product (www.commbank.com.au). Therefore main competitor of commonwealth bank is National Australia bank (www.ukessay.com). On the other side, CBA has robust market and business position in retail market of Australia (Nico and Gavin, 2014). This assignment includes pestle analysis of choosing company of commonwealth bank.

Analysis
Economic
CBA capital position are neutral as measured by RAC and standard ratio. Therefore CBA strengthen its capital levels under Basel III regulatory capital framework that would have stronger impact on CBA neutral capital setting or have better outcome on individual bank capital management philosophies. (Nico and Gavin, 2014)
Technological
It was first Australian bank offering its customer real time settlement and banking. Bank also provide a 24 hr access to banking service through EFTOS and ATM or telephone banking. It is most famous online broker providing facilities like Net bank and Comm Sec.
Recently innovations are CBA kaching for Facebook like
– First social media banking providing its customer speedy and secure banking.
-Smart sign allowing customers to manage loan documents electronically anytime, anywhere using secure online portal.
-My wealth allowing investors to analysis and investing in financial product using login.
These innovations result in improvement of the frontline customer interface of commonwealth bank (Commonwealth bank annual report, 2013). Therefore CBA investment in technology is process simplification and driving productivity, leading to operational efficiencies from productivity initiatives as tangible benefit and have positive impact in the expense base (Nico and Gavin, 2014).
Social
The bank play great role in supporting communities by offering financial literacy programs and by aiding and collaborating with community organisation. While providing opportunities for its employ to engage with local communities and therefore promoting culture across broader community. For indigenous youth and adult’s bank provide greater access to educational facilities mainly in financial literacy. Therefore positive impact of these action is that it continuing to strengthen and extending commonwealth bank bonding with community organisations. (Commonwealth annual report, 2013)
Environmental
CBA is Australian biggest organisation and its operations have direct and indirect impacts on the environment. Therefore this can be prevented by attaining the Carbon Reduction Target and by supporting group clients in their transition to low carbon economy. These target carried out by replacing inefficient lighting and upgrading heating, ventilation and air conditioning (HVAC) system in retail and commercial buildings. Therefore they also move their offices from inefficient building to environment efficient premises. These have great impact on commonwealth bank, therefore in 2012 CBA won sustainability awards for built environment. (Common wealth bank annual report, 2013). Major impact of their action is that the bank attain a position in ASX 200 and CDP global 500 Climate Performance Leadership Indices (CBA 2014 annual report).
Political
Political analysis includes financial deregulation and Privatisation. These policies was main reason behind the changing of the CBA from the ‘people’s bank’ to a private organisation leading to increasing returns to its shareholders and managers, and free of any community responsibility. There is the main cleft between the government’s consisting of privatisation and the traditional policies of the Labor Party. Not only, Commonwealth Bank remarked with immense ill will, in conventional area of the electorate, but also lead to discontinuity of the most explicit promises. Privatisation and financial deregulation of the Commonwealth Bank was a disastrous for Australian public. Financial deregulation has been the same. During the entry of financial deregulation, banks have embossed fees and charges, cut services and utilized their collective monopoly power whenever possible. In latest correction, no one knows whether or not Australian government guaranteed bank deposits. However, because the major banks are considered ‘too big to fail’, they are usually examined to be definitely guaranteed. Major impact is that commonwealth bank stop providing free insurance to profit-oriented bank. Other Major impact on commonwealth bank is that they start operating as saving banks by spinning off their insurance and other activities. (John Quiggin).
Legal
Commonwealth bank starting an Open advice review program (OAR) for customer of Commonwealth financial planning limited and financial wisdom limited to compensate for poor financial advice. Legal responsibility of OAR of CBA includes Negotiating with the ICAs and independent parties (including Promontory) • Preparation and focalizing customer documentation. Therefore, Specialist team of CBA staff conduct OAR assessment, therefore there are availability of checks and balances to enrich the rightfulness of the outcomes for affected customers. These are: Independent customer advocate (ICA), group consisting of Australia largest three customary advocacy law firm that are mainly selected by customers to assess them with their scrutiny of their assessment outcomes. Independent review panel to survey customer offer and estimation where the customers cannot reach agreement with commonwealth bank. These OAR program has embossed challenges for commonwealth bank like establishing services actually needed by customers, determining the scope, type and timing of financial advice provided to customer etc. These has impacted the time needed for preparation of assessment of individual customer cases in program. (Promontory Financial group).
Conclusion
Since its initiation in 1911, Commonwealth Bank of Australia (CBA) has developed into Australia’s biggest money related administrations supplier, offering a full scope of administrations to help clients fabricate and deal with their accounts. Therefore while plaining for future commonwealth bank should have to take some factor in concern that their action maintain long term sustainability of environment and business or bring long term benefit to public. Therefore bank have also to display community action, medical, youth, science and technology, the arts and the environment are their region of specific importance. Whereas legally, complexity about to solve particular issue will be reviewed by panel in future cases. Overall, commonwealth from its long term success in banking system, are continues to provide excellent customer services.

References
Commonwealth bank. Retrieved from: http://www.banks.com.au/directory/commonwealth-bank/
Commonwealth bank overview. Retrieved from: https://www.commbank.com.au/about-us/our-company/overview.html
Commonwealth bank 2013 annual report. Retrieved from: https://www.commbank.com.au/…/commbank/…/2013_CBA_Annual_Re.203
Commonwealth bank 2014 annual report. Retrieved from: https://www.commbank.com.au/…/commbank/…/2014-annual-report-website

Description of CBA. Retrieved from http://www.ukessays.com/essays/information-technology/description-of-commonwealth-bank-australia-information-technology-essay.php
John Quiggin. The ‘People’s Bank’: the privatisation of the Commonwealth Bank and the case for a new publicly-owned bank. Retrieved from http://www.uq.edu.au/economics/johnquiggin/JournalArticles01/CBAPrivatisation01.html
Nico N and Gavin J. (2014). Commonwealth bank of Australia. Retrieved from WWW.STANDARDANDPOORS.COM/RATINGSDIRECT DECEMBER 18, 2014
Promontory financial group Australia. (2014). Report – Commonwealth Bank of Australia
Retrieved from: https://www.commbank.com.au/…/commbank/…/promontory-initial-rep.