In an unexpected move, Commonwealth Bank of Australia (CBA) has announced it will promote discounted NBN and broadband services to its customers, after acquiring a 25% ownership stake in NBN retail telcos More Telecom and Tangerine.
The partnerships announced today build on CBA minority investments early this year into other companies that they will also cross promote:
- 23% shareholding in Little Birdie, an online shopping start-up to help customers find special deals when shopping online;
- 25% shareholding in Amber which provides subscription based access to wholesale electricity prices.
CBA’s Group Executive for Retail Banking Services, Angus Sullivan said the bank would continue to deliver value to its retail customer base through its unique digital footprint:
“Our partnerships with Little Birdie, Amber, and now More Telecom and Tangerine, are core to the way we help our customers find great deals and save them money. These partnerships initially focus on our 11 million retail customers, 7.5 million of whom are digitally active, and underscore the unique and compelling value of banking with the Commonwealth Bank”.
Co-Founder of More Telecom and Tangerine, Andrew Branson, said the partnership would allow the business to fast-track its expansion plans and accelerate growth.
“We aggressively entered the NBN market in 2013 and have built our customer base to become one of Australia’s largest privately owned telcos. Our plan was always to capture a significant market share in NBN and partnering with Australia’s largest bank to distribute our products and services will only help that” .
Overall promoting deals and bundles from these companies it part owns (and no doubt others to come) will result in increased diverse revenue streams for CBA, leveraging its large 11 digitally active customer base.