Commonwealth Bank (ASX:CBA) shares higher as bank moves into broadband business

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Commonwealth Bank of Australia (ASX: CBA) shares are moving higher today, up 1.0% to $99.39 per share.

That’s largely in line with the S&P/ASX 200 Index (ASX: XJO) today, up 0.9% at time of writing.

CBA is back in the media spotlight after the big four bank revealed it is acquiring a 25% ownership stake in national broadband network (NBN) retail service providers, More Telecom and Tangerine.

Why is CBA taking a stake in 2 NBN providers?

Australians pay some of the highest prices in the world for their internet service. And that includes the costs of using your banking apps.

Now, as itNews reports, CBA is planning to use its clout to offer its 11 million customers “discounted NBN and broadband services“.

According to CBA’s group executive for retail banking services Angus Sullivan:

The average monthly cost of internet in Australia is one of the most expensive in the world, and we are uniquely positioned to help customers manage these costs. We will do this by utilising our technology to provide personalised offers via the CommBank app to those customers we know will benefit from switching broadband providers.

CommBank reported that once its app is rolled out, customers would also be able to “view their NBN or broadband plan, usage and upcoming bills”.

Sullivan added that the bank is “reimagining banking for our customers, creating more value for them, putting more money back in their pockets, and helping them save money by exposing them to new ways of doing things and new quality products and services.”

Commonwealth Bank earlier this year revealed it plans to invest $1 billion in technology in the next 5 years.

In May CBA invested $30 million in ecommerce startup Little Birdie. With online shopping continuing to grow rapidly, CommBank’s mobile banking app will enable its customer direct access to Little Birdie’s 70 million plus products.

CBA share price snapshot

CommBank’s share price is up 34% over the past 12 months, compared to a gain of 21% on the ASX 200.

Year-to-date CBA shares have continued to beat the benchmark, up 19%.

Commonwealth Bank pays a 2.54% dividend yield, fully franked.

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