The acquisition is performed through CBA’s venture-scaling arm, x15ventures, accelerating the bank’s ambition to augment its lending capabilities.
CBA already has an existing partnership with Waddle through its Stream Working Capital product, which allows its business customers to unlock cash tied up in unpaid invoices with a digital cash flow solution connected to business accounting software like Xero, MYOB, and QuickBooks.
Acquiring Waddle and bringing the technology in-house will enable CBA to accelerate the growth of its Stream Working Capital product, while continuing to benefit from the first-class automation and flexibility the Waddle platform is capable of.
CBA's officials said the Waddle deal aligns with the bank’s commitment to simplify finance for businesses and enhance digital customer experiences. Stream Working Capital, which uses outstanding invoices for loans, offers flexibility and speed in accessing funds. This deal enables CBA to expand its digital working capital solutions, providing faster funding assessments and approvals, ultimately aiding Australian businesses in optimising cash flow and driving growth.
Representatives from x15ventures see the acquisition as an opportunity to leverage CBA's existing investments for the benefit of customers. This deal combines strengths of the Stream Working Capital product and distribution capabilities with the secure technology and operational expertise of x15ventures, allowing Waddle to maintain its innovation momentum. x15ventures was established to enable digital-native businesses to operate in a familiar cultural and technical environment while gaining access to the resources and reach of CBA.
Completion of the transaction is expected to occur after the satisfaction of customary conditions.
In February 2023, Commonwealth Bank has decided to implement new scam detection systems across its digital banking platforms.
The new scam detection technologies address rising fraud activity in Australia and enhance the security of its digital platforms. This decision is also influenced by the Medicare and Optus data breaches in 2022.
CBA plans to introduce two checks: NameCheck and CallerCheck. NameCheck, launched in late March 2023, helps customers verify the legitimacy of other account names and details by cross-referencing previous transactions. It is available on the CommBank app, NetBank, and CommBiz platforms.
CallerCheck enables banking staff to trigger notifications in the CommBank app to confirm the authenticity of incoming calls from the bank. These measures aim to provide a safer banking experience for all CBA customers.
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