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  • September 2019 (Revised February 2020)
  • Teaching Note
  • HBS Case Collection

Commonwealth Bank of Australia: Unbanklike Experimentation

By: Ryan W. Buell and Leslie K. John
  • Format:Print
  • | Language:English
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Abstract

Email mking@hbs.edu for a courtesy copy.

This Teaching Note explains the theory of the case and teaching plan for the case: Commonwealth Bank of Australia: Unbanklike Experimentation (619-018). In August 2017, Commonwealth Bank of Australia was looking for ways to differentiate itself from competing banks and was also trying to improve the financial well-being of its customers. One domain where this was particularly relevant was in its bank-issued credit card business, where customers routinely selected cards that although profitable for the bank could be a poor fit for customers’ needs—leading to low satisfaction scores, cancellations, and occasionally, financial distress. To that end, the company’s Behavioral Economics team had developed a provocative experiment dubbed “The Good and the Bad.” Rather than just presenting the strengths of its various credit card offerings, they proposed also promoting each credit card’s less-obvious drawbacks. Being transparent with customers might help them make better choices, but would those choices come at the expense of bank performance? Should a company choose to be in the sales prevention business?

Keywords

Transparency; Experimentation; Banks and Banking; Credit Cards; Customer Focus and Relationships; Competitive Strategy; Banking Industry; Australia

Citation

Buell, Ryan W., and Leslie K. John. "Commonwealth Bank of Australia: Unbanklike Experimentation." Harvard Business School Teaching Note 620-041, September 2019. (Revised February 2020.)
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About The Authors

Ryan W. Buell

Technology and Operations Management
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Leslie K. John

Negotiation, Organizations & Markets
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Related Work

    • September 2019 (Revised February 2020)
    • Faculty Research

    Commonwealth Bank of Australia: Unbanklike Experimentation

    By: Ryan W. Buell and Leslie K. John
Related Work
  • Commonwealth Bank of Australia: Unbanklike Experimentation By: Ryan W. Buell and Leslie K. John
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