The Commonwealth Bank of Australia (ASX: CBA) share price has soared more than 50% in the last two years, significantly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen by just over 10% in the same time period.
There are a few things that could explain why CBA shares have done so much better than the ASX 200 and why it has been a top performer compared to other major ASX bank shares like Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ), National Australia Bank Ltd (ASX: NAB), Bank of Queensland Ltd (ASX: BOQ) and Bendigo and Adelaide Bank Ltd (ASX: BEN).
CBA is the leading domestic bank in Australia when it comes to market capitalisation, the scale of profit generation and the overall quality of a bank.
But, in this era, there is one underrated thing that may be helping CBA shares lead the pack.
Digital lead on ASX bank share competitors
According to Contact Asset Management, CBA appears to be leading its competitors regarding digital capabilities.
The fund manager recently noted that, the bank increased its investment spending by 11% to $1.1 billion during the CBA FY25 half-year period. This investment was allocated across a number of key areas including $489 million for productivity and growth initiatives, $333 million for risk and compliance projects and $274 million for infrastructure and branch refurbishment.
Contact believes that years of capital expenditure has "enhanced CBA's digital capabilities, streamlined banking processes, strengthened risk management and modernized technology and infrastructure."
Due to this investment, the fund manager believes CBA now leads the market in consumer mobile apps and digital offerings, with 8.8 million active app users and 12.3 million daily logins.
The fund manager concluded:
Building on its significant digital investments, CBA allocated over $800 million in 2024 to protect clients against fraud, scams, financial and cybercrime, with a further $450 million invested in the first half of FY2025. CBA's consistent, disciplined capital management strategy and ongoing investment have driven growth and scale, leading to superior and sustainable shareholder returns over the long term.
Why I think this helps CBA shares
While qualities such as having a robust loan application process, strong balance sheet settings and investments in productivity are important for CBA's investment case, I think CBA's customer service is a major contributor.
Having the best app is translating into winning the a lot of new customers. Those new customers will put their savings into CBA savings accounts and there's a good chance they may eventually take out a loan with CBA, adding to the long-term growth outlook of the business.
I think that CBA's technology advantage gives the bank one of its best selling points to win deposit and loan growth in the long-term.
