In the 2025/26 financial year, Commonwealth Bank of Australia loaned more than $50 billion to businesses across the nation, around $31 billion of which was used for operations that feed into the nation's productivity.
"We need this economy to move from a passive home loans, home property investment market to one that invests a lot more in productive capacity," business banking head Mike Vacy-Lyle told AAP.
One of the regions where businesses are leading the way is Western Australia, which is already reaping the rewards of higher commodity prices for its minerals, metals and agricultural goods, the bank noted.
But it's also picking up in service businesses, like health care, education, hospitality, tourism and accommodation, on the back of that mining wealth and strong population growth, as people move from other states.
Queensland businesses are also stepping up, again on the back of solid population growth, and in the run-up to the 2032 Olympics.
In NSW, the picture is mixed with businesses moving aggressively in Bradfield City, the 114 hectare master planned centre around the new Western Sydney airport, particularly in logistics and services.
Mr Vacy-Lyle was also surprised to see a step-up in Woollongong, south of Sydney, where hotel accommodation is tight and there's strong demand for services, particularly in hospitality, in and around the city's university.
"So very innovative businesses are sort of blossoming in Wollongong, which I am excited about," he said.
Some of the business investment trends noted by the bank include waste and waste management technology, like managing plastic or re-using chemicals in waste products to support other industries.
"So there's been a lot more innovation than we actually give this economy credit for, particularly in the small business space," Mr Vacy-Lyle.
While businesses, like households, have been under pressure due to a higher cost of living and rising borrowing rates, Mr Vacy-Lyle says there's no doubt many are trying to think outside the box.
"There's a whole part of innovation happening under the surface, and we're scratching and finding it, and we want to fund more of it," he added.
Commonwealth Bank currently has $180 billion in business loans on its books, up from 13 per cent a year ago.
The pace of growth is about 1.3 times above system, which means it's sitting above the average growth of the business banking market as a whole.
Its business lending market share is around 26 per cent, as measured by banking and finance customers who've nominated it as their main financial institution.
The leading business lending bank is National Australia Bank.
Commonwealth Bank's business banking arm contributed 41 per cent of its $11 billion group cash net profit for 2025/26.
