The Comparison between Commonwealth Bank and National Australia Bank - Coursework Example

Executive Summary The recent economic crisis has made banks lay special attention towards the banking reforms and ensures that all steps are taken by the banks to reduce crisis. This has made banks lay special attention to convergence, cross promotion, compliance, currency, corporate, and corporate responsibility. The report looks into the comparison between Commonwealth bank and National Australia Bank on convergence, cross promotion, compliance, currency, corporate, and corporate responsibility. The comparison between both the bank on the basis of their disclosure on the website shows that both banks offer similar service and there is little to choose between them. The report also highlights certain difference between Commonwealth bank and National Australia Bank on cross promotion and currency as National Australia Bank offers a more currency conversion and cross promotion due to the presence over various locations. This report thus highlights that there is very little difference among banks except in certain areas. Contents Introduction 3 Purpose of the report 3 Commonwealth Bank & National Australia Bank 3 Convergence in Commonwealth Bank & National Australia Bank 4 Cross Promotion in Commonwealth Bank & National Australia Bank 5 Compliance in Commonwealth Bank & National Australia Bank 5 Currency in Commonwealth Bank & National Australia Bank 6 Corporate in Commonwealth Bank & National Australia Bank 7 Corporate Responsibility in Commonwealth Bank & National Australia Bank 8 Conclusion 9 References 11 Introduction The recent global crisis has forced the banking sector to look towards ways to improve their functioning and ensure that failures reduce. Banks are looking to strengthen their reforms and monitoring system at the same time ensuring that they are able to satisfy customer. Commonwealth Bank and National Australia Bank are in the banking sector and there is very little to choose among the banks as all of them offer similar products. The only difference seen in banks is manner in which they render services and some basic difference among their working. The report looks into the manner Commonwealth Bank and National Australia Bank differ on certain important characteristics. Purpose of the report To compare the different issues surrounding Commonwealth bank and National Australia Bank like convergence, cross promotion, compliance, currency, corporate, and corporate responsibility. To identify the manner in which Commonwealth bank and National Australia Bank satisfies the different factors and the way bank manages these vital issues Commonwealth Bank & National Australia Bank Commonwealth bank is an Australian bank and is ranked second among the banks performing in the country. The bank being in the service sector has ensured quality in service. For this the bank has a code of conduct which employees need to follow. (Company Website, 2010) National Australia Bank is the 17th largest bank and has its operation in 10 countries. The bank has been able to grow because of the wide variety of service it offers to the different customers like corporate, personal account customers and even the loan providers. (National Australia Bank Website, 2010) Convergence in Commonwealth Bank & National Australia Bank Convergence is when two or more development are used together to improve the efficiency of the working environment. In the banking sense it is when technology is integrated with service to ensure higher satisfaction level. When we compare the convergence of both Commonwealth bank and National Australia Bank we see that both the bank has been able to evolve integrate the technology to ensure that they are able to deliver proper services. When we look at National Australia Bank we see that customers can report for stolen cards, request cheques, use electronic transfer and similar other facilities. (National Australia Bank Website, 2010) Commonwealth bank also offers similar functions where their customers can transfer electronically, check their balances, request for cheque books, and similar other functions. (Company Website, 2010) Thus there is very difference in the convergence between Commonwealth bank and National Australia Bank. Cross Promotion in Commonwealth Bank & National Australia Bank Cross promotion in banks is where the bank is able to mould the customer behavior in such a way that satisfaction remains high. When we compare the cross promotion in Commonwealth Bank & National Australia Bank we see that both the banks have been able to garner high cross promotional. National Australia Bank with its presence over ten countries and the ability of people to use technology to interact is helping to achieve high cross promotional in bank. (National Australia Bank Website, 2010) Commonwealth Bank on the other hand has been able to achieve high cross promotional through branches at different places in Australia where the culture are somehow different. (Company Website, 2010) This highlights that both the bank has been high on cross promotional but National Australia Bank stands ahead due to more branches and looking towards expansion by moving out of Australia. This will help to integrate the culture of different country and somehow differentiates from Commonwealth Bank on cross promotional aspect. Compliance in Commonwealth Bank & National Australia Bank Banks have to adhere to the norms laid by the Central or Reserve bank of the country. Banks have to pay special attention to it and ensure that they ensure proper practices to ensure that they adhere to the lawful requirements. When we compare both the Commonwealth Bank & National Australia Bank we see that both banks being in the same sector has been able to meet the compliance laid by the Central bank. National Australia Bank has on their website an option where they have the annual disclosure at notice. The annual disclosure at notice shows that the bank provides all financial relevant information to the public, shareholders and the public. (National Australia Bank Website, 2010) Also since it is in the banking sector it has ensured that they adhere to the Basel norms thereby ensuring the compliance norms. Commonwealth Bank on the other hand has been able to ensure that the compliance level is high. Their website demonstrates that the banks have different committee like audit committee, risk management committee, and nomination committee along with other similar committees (Company Website, 2010) which looks into the aspects. Similarly the bank has adhered to the Basel norms which highlights that both Commonwealth Bank & National Australia Bank has been able to comply with all the compliances laid by the governing body. Currency in Commonwealth Bank & National Australia Bank Currency is an important aspect in the banking sector as it determines the manner in which the bank will deal. It is important that banks are able to provide a varied of services and having currency conversion as it allows the customer to get money in various currencies. When we compare the currency conversion in Commonwealth Bank & National Australia Bank we see that National Australia Bank mainly deals in all type of currencies and provides conversion to any currency. Even when we look at the website of the bank it shows conversion rates demonstrating that it deals in other currencies. (National Australia Bank Website, 2010) Since, the bank has a lot of locations we see that the bank deals in different currencies thereby enabling currency conversion which provides more flexibility in this matter. A look at Commonwealth Bank shows that bank deals in different currencies. The website of the bank also demonstrates the currency conversion feature which will help people visiting different countries as they can convert the money to other currency. At the same time the present of feature like foreign exchange guide and online banking (Company Website, 2010) for the same shows the integration and importance being laid to currency. This shows that currency conversion is more in Commonwealth Bank as compared to National Australia Bank which highlights that currency is laid more importance in Commonwealth bank as compared to National Australia Bank. Corporate in Commonwealth Bank & National Australia Bank Banks lay special attention to corporate sector as they help to contribute towards the success of banks. Banks lay special attention to ensure that the requirements of the corporate sector are met as they help banks to garner their deposit and pay interest on those loans. When we compare the attention paid to corporate sector by Commonwealth Bank & National Australia Bank we see that National Australia Bank lays special attention to the corporate sector. Their website demonstrates that they lay special attention to the corporate sector. They have a link which directs the corporate sector to that page and helps them provide the necessary information required by the sector. (National Australia Bank Website, 2010) A look at the Commonwealth Bank shows that they also lay special attention to the corporate sector. The bank has a section which deals with corporate and ensures that they are dealt properly with. The bank has different features for the corporate sector like special accounts, over draft facilities, salaries account for their employees, and other similar features which helps the corporate sector to achieve extra. (Company Website, 2010) Thus both the Commonwealth Bank & National Australia Bank lay special attention to the corporate sector and ensure that they are able to attract maximum corporate to their bank. Corporate Responsibility in Commonwealth Bank & National Australia Bank The recent economic crisis has increased the level of corporate governance in the banking sector to ensure that banks are able to provide proper services and banks failure reduces. When we compare the Commonwealth Bank & National Australia Bank we see that National Australia Bank lays importance to corporate responsibility. National Australia Bank has ensured that their website discloses the privacy issues and the important disclosures which will help the customer to decide their course of actions. (National Australia Bank Website, 2010) The bank has ensured that all necessary steps are taken to ensure that corporate responsibility is adhered to. This is also seen from the fact that the bank had been successful for many years. This highlights that the bank has been able to deliver on corporate responsibility and has ensured that customer satisfaction is high showing that the bank has been able to deliver on corporate responsibility. When we look at Commonwealth Bank we see that the bank has a code of conduct which employee needs to follow while they deal with the customers which will ensure better services. (Sample Paper, 2010) The bank also has on their website information related to disclosures. This shows that the bank has been able to deliver on the corporate responsibility and has ensured that every step is taken to ensure it. Thus both Commonwealth Bank & National Australia Bank have laid importance to corporate responsibility and have taken all steps to ensure that corporate responsibility towards all stakeholders are delivered. Conclusion A comparison between the Commonwealth Bank & National Australia Bank on different factors like convergence, currency, corporate responsibility, corporate, and cross promotion shows similarity. This also highlights that banks have very little difference among the services rendered by them. We see slight difference between Commonwealth Bank & National Australia Bank on certain factors like currency and cross promotion. Still on the overall level we see that both the banks are similar and there is very little to choose between the two as both of them render similar services. References Company Website, “Commonwealth Bank”, 2010 retrieved on October 28, 2010 from http://www.commbank.com.au/ National Australia Bank Website, “National Australia Bank”, 2010 retrieved on October 28, 2010 from http://www.nab.com.au/ Sample Paper, “Commonwealth Bank of Australia”, Harvard Sample Paper, 2010 Read More