Commonwealth wins WA banking contract

The Commonwealth Bank of Australia has won a $100 million contract to provide banking services to the state government for at least three years.

The contract is to provide transaction banking, merchant services and related banking from December 2022 until 2025, with an option to extend until 2029.

The Department of Treasury picked CBA earlier this month, and the contract applies across the public sector.

There were five submissions.

CBA previously won the Department of Treasury’s banking services contract in 2008, a deal that was extended five times, to finish late in 2022, and was valued at $133 million.

It isn’t the only major bank to have a state government contract.

NAB won the latest contract for the government’s purchasing card and expense management systems in 2017, with potential extensions available until 2027.

Commonwealth has about 1,400 staff in Western Australia, according to Data & Insights.

“We have worked with the Western Australia government for 22 years and seen first-hand the incredible innovation, growth and development the state has produced over that time,” CBA group executive of institutional banking and markets Andrew Hinchliff told Business News. 

“Helping our clients build Australia’s future is central to what we do, so we are delighted the WA government has reappointed CBA to be its exclusive transaction banking provider. 

“Our capabilities in payments, merchant services, liquidity management, data and analytics, transit ticketing and eCommerce will all be put to work as part of the partnership, and we are very much looking forward to helping the state of WA on the next phase of its growth and development.”