The future is more connected
As real-time payments become a global standard, value-added innovations and solutions are emerging. This includes Payments-as-a-Service (PaaS) models using APIs to connect businesses with new payments capabilities tailored to their needs.
CommBank’s APIs help businesses offer new payment options, such as PayTo®, where they can initiate real-time payments from customer’s bank accounts. Another example is other financial institutions adopting CommBank’s NameCheck API, allowing fast account validation for first-time customers and fewer mistaken payments.
Payments are getting smarter
A range of digital and in-person payment solutions is transforming how businesses operate - going beyond transactions to deliver real-time data insights, enhanced security, and seamless integration. From advanced in-store solutions to online gateways, we enable merchants to not only accept payments anywhere but also gain deeper visibility into customer behaviour, optimise cash flow, and unlock new revenue opportunities.
Luke Jericho, CommBank’s Head of eCommerce says businesses are moving towards invisible payments and secure, hyper-personalised checkout experiences.
“We’re simplifying payment experiences through orchestration and developing tailored payment solutions which meet the specific and emerging needs of merchants in key industry verticals”.
- Luke Jericho, CommBank’s Head of eCommerce
Uplifting global speed and safety
Payments connectivity is strengthening across global markets, with new capabilities and better-integrated payments rails helping businesses move, track, exchange and settle funds efficiently. For businesses with global reach, this could mean faster and more visible cash flows.
Ethan Teas, CommBank’s Executive General Manager Payments, said, “We’re processing inbound cross-border payments 24/7 in local currency with more to come, but businesses also want to know the status of international payments. That’s possible with real-time tracking and security.”
New tools to combat scams and fraud
There are powerful new capabilities that protect businesses from scams and fraud. Alongside biometric authentication, encryption and tokenisation, fraud prevention is already a proven, large-scale use case.
CommBank's NameCheck API uses an algorithm to indicate whether the account details entered look right based on available payment information. It checks how likely it is that a BSB and account number match a business’ intended payee to help combat fraud and prevent mistaken payments.
“It has been used more than 80 million times and prevented $650 million in mistaken and scam payments1.”
- Ethan Teas, CommBank’s Executive General Manager Payments
One-for-all approach to cyber security
From a cyber security standpoint, it’s important for businesses to be plugged into what’s happening externally and adopt a ‘chain of reaction’ mindset rather than viewing threats in isolation, says Martijn Verbree, CommBank’s Group Security Lead, Cyber. In response to escalating threats, an ecosystem approach to security is vital. That is, ensuring all interconnected parties across the supply chain are working together to uplift safeguards.
“We have programs to share intelligence to help Australian businesses remain on top of the threat, and we’re deploying new technologies to keep our customers’ digital banking secure.”
- Martijn Verbree, CommBank’s Group Security Lead, Cyber
"This involves establishing robust guidelines for the use of our AI applications across the group. Additionally, we are leveraging AI to strengthen our cyber defences, which is essential as cybercriminals are increasingly utilising AI as well."
Democratising customer insights
As payments become more data-rich, they’re also generating valuable customer intelligence. According to Makenna Ralston, CEO of CommBank iQ, once you can transform that data into actionable insights, the commercial benefits will follow.
“AI is the future of customer intelligence, we are developing a new customer profiling tool to allow anyone—not just data scientists—to uncover customer insights.”
- Makenna Ralston, CEO of CommBank iQ
Ralston cites CommBank iQ's collaboration with Kayo Sports, where customer spending insights enabled hyper-localised advertising campaigns, contributing to significant subscription growth and improved marketing efficiency.
Optimising business performance
Transactional data can also provide valuable insights into financial performance and process improvements. This includes detecting cash flow trends, identifying cost savings and enhancing efficiencies. Today, transactional insights can be sourced from integrated payment systems, web-based portals or in-store terminals, enabling businesses to better track key performance indicators.
Simplifying cash management with Virtual Accounts and Working Capital
Enabling Virtual Account capabilities into account and cash management processes can help businesses unlock automation and streamline operations.
CommBank will soon launch its Virtual Accounts solution for segregating transactions and balances, enhancing reconciliation, and providing central visibility for a business’s real-time cash position. Over the long term, businesses can potentially embed Virtual Account capabilities within their ERP systems and achieve end to end seamless automation.
CommBank has also invested heavily in products, platforms and people to deliver market leading Working Capital solutions. These solutions are increasingly being recognised by Australian corporates to assist with key KPIs surrounding their Working Capital metrics.
Data analytics are also being used to showcase the importance of Working Capital optimisation through peer analysis and industry benchmarking to provide solutions that will improve free cash flow positions, which CommBank is now providing to their existing customers.
Partnering to scale-up innovation
Toby Norton-Smith, Managing Director of CommBank’s venture-scaling arm, x15ventures, discussed the expansion of a program it runs to rapidly identify and conduct due diligence on early-stage startups which could help the bank reimagine its products and services. Called Xccelerate Open, the enhanced program invites like-minded corporates to participate for the first time, providing exposure to early-stage ventures innovating in key problem areas in a capital efficient way.
Norton-Smith also showcased two ventures from the x15 portfolio: Truyu, Australia’s first identity protection tool, which was built in-house at x15 in under five months; and Payble, a payment experience platform for local government, which is helping more than 30 councils collect payments faster.
Pathways to AI readiness
AI is revolutionising many aspects of payments with seemingly limitless applications. CommBank, recognised in the top five banks globally for AI maturity2, is using microlearning to boost AI skills among staff. This includes rolling out learning videos on topics such as generative AI and responsible AI.
Alongside a stringent governance framework, this supports ongoing AI initiatives and customer benefits. This includes using AI to streamline and simplify loan applications and annual credit reviews for Australian small business customers3.
