The Commonwealth Bank of Australia (ASX: CBA) share price has clawed back early losses and is up 0.37% at the time of writing.
The S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $99.44 a share. In early afternoon trading, the bank's shares are swapping hands for $99.81 apiece.
While that's not a massive gain, it comes as the ASX 200 is down 0.43% with the S&P/ASX 200 Financials Index (ASX: XFJ) 0.18% lower at this same time.
So, could the CBA share price be getting some tailwinds from the bank's latest push to increase its market dominance?
How is the ASX 200 bank planning to increase its market dominance?
CommBank is aiming to increase its share of Australia's small and medium-sized enterprises (SMEs) by upping the appeal of its deposit offer.
National Australia Bank Ltd (ASX: NAB) has long led the big four in business banking. But CBA is making inroads, with more than 22% of the business deposit market at the end of the 2022 financial year.
In a move that could help boost the CBA share price over time, the bank is offering a new short-notice deposit account for SMEs.
The new accounts will pay 2.1% interest, and funds can be withdrawn without penalty with a notice period of 48 hours.
"This short notice product is the first of its kind in Australia, giving customers more immediate access to their funds," CBA executive general manager of everyday business banking James Fowle said (courtesy of The Australian).
"We believe that the opportunity is significant for us to gain market share, and to win deposits from our competitors," he added.
A potential risk to the CBA share price is that the new account offerings will squeeze its net interest margins (NIM).
According to Evans and Partners bank research director Azib Khan:
This could prove to be an attractive product given that small businesses tend to be transaction-heavy. I think it will initially put CBA's margin at risk as small businesses shift deposits from transaction accounts to the new product.
However, over time, CBA will hope to gain small business transaction banking market share.
CBA share price snapshot
The CBA share price is down 5% over the past 12 months.
Longer-term, the ASX 200 bank has gained 43% over five years.