Systems spotlight
Aside from the damage to CBA's standing, the allegations highlight an inherent tension in banking: all the emphasis on making life easier for customers, including through digital technology, can create new risks if not properly managed.
One of the key areas where CBA this week said it had spent an extra $85 million in the past two years is its "know your customer" systems.
This is essentially the obligation on banks to know who they are doing business with. An industry source points out, however, that there are commercial pressures to remove the "friction" from banking – by asking fewer questions of people, it is faster to sign them up to a new product.
Taking the extra time to ask more questions, however, will tell a bank more about its customers.
The allegations are also putting the spotlight on parts of the bank that normally get little public attention but are crucial: their internal compliance systems, and the lines of accountability in these enormous bureaucracies
