Mr Vacy-Lyle said this type of lending would help customers – who could repay loans from their working capital as soon as they come in and optimize cash flow – as well as the bank, as lending would become part of the core offering of merchants.
Small business confidence remained elevated ahead of last week’s general election, but there was significant uncertainty about inflation, leading to expectations that confidence would weaken in the next quarter.
Dominated in technology
“The problem now is figuring out where consumer demand for goods is and how companies are able to pass on cost increases,” Vacy-Lyle said. “We saw that more than half were able to pass on the costs.”
With a roughly 18 percent market share in lending and a 22 percent share of the transactions market, CBA is focused on lending more to these relationships in 2022 and 2023.
The bank is looking to sectors where it is technologically dominant to grow in small businesses, with the expectation that its new point-of-sale technology will help it win customers in the lucrative healthcare space.
With more than 100,000 physicians processing $120 billion in payments a year, Mr. Vacy-Lyle said the end-to-end solutions CBA could offer would help drive growth in an area to advance, which was cyclically strong.
But CBA also wanted to grow in the hospitality industry, which had emerged from the pandemic in good shape.
“Australians love clubs and pubs. We initially thought it would be completely destroyed by the pandemic, but it’s quite remarkable to see how resilient they have been,” he said.
CBA said the Doshi acquisition would help it capture more of the hospitality market, as tighter job markets meant more people were ordering from their tables as companies changed models.
Mr Vacy Lyle said Australians spend $30 billion in 90,000 venues every year and Doshi, which connects ordering apps from Deliveroo to kitchens to venue tables, is helping businesses save on costs and capitalize on that consumers are becoming more digitally savvy.
CBA Chief Executive Matt Comyn told analysts and media at the bank’s recent technology update that CBA is increasingly targeting its retail customer base with offers and deals from its business customers through the CommBank app.