On 20 August, x15ventures, the business scaling arm of Commonwealth Bank of Australia, will close applications for its annual Xccelerate program, an opportunity for technology startups to win a $250,000 investment in their company.
The competition reflects CBA’s broader efforts to establish itself as a dominant force in the field of artificial intelligence in the fintech space. The bank’s initiatives, including its partnership with Microsoft and the work of x15ventures, highlight its intent to replicate the success of its ambitious digital transformation program that revolutionized the banking sector a decade ago.
x15ventures: an innovation center
In July, CBA’s x15ventures opened applications for Xccelerate.
x15ventures is dedicated to creating, acquiring and investing in startups that align with CBA’s strategic objectives. In its four years of operation, the program has made a dozen strategic investments in innovations, including Splashup, OwnHome, Payable and Doshii.
These investments have largely gone into applications that drive innovation in financial services, but Laura Faulconer, portfolio director at x15ventures, said VCs are now specifically interested in AI.
“We’re interested in a broad range of AI capabilities,” he told TechRepublic. “And some of the areas we’re particularly zooming in on right now with Xccelerate are how AI and data can reimagine the employee experience and improve customer outcomes, whether that’s CommBank as a customer or whether we’re a scale partner adding value to our retail and commercial customers.”
Faulconer said the program not only offers financial investment, but also strategic guidance, helping startups navigate the complexities of partnering with a major bank. Additionally, through collaboration, the program helps extract value from the innovation itself.
“We know it’s difficult to partner with a bank when you’re at an early stage,” he said. “But that’s the secret of x15: we can find the right opportunity and help them partner in a way they couldn’t do directly.”
Entrepreneurs, startups and innovators are seeking funding in a market that is undergoing a “cleansing” process, according to an AFR report. x15ventures represents a stable source of ongoing investment for those who can meet their goals.
“I would say the venture capital environment is ‘mixed,’” Faulconer said. “I think investment sentiment is picking up… but that doesn’t mean it’s not very difficult for companies that are still on their path to product-market fit.”
What the shift to AI means for IT professionals
The CBA aims to set new benchmarks for the financial industry by integrating AI into various aspects of its operations. The bank’s use of AI to automate routine tasks, personalise customer interactions and improve decision-making processes offers a glimpse into the future of banking.
Earlier this year, CBA specifically highlighted the depth of its investment AI models in its financial update.
In March, it announced a partnership with Microsoft to leverage generative AI to improve customer service and operational efficiency. A key outcome of this partnership is the development of “CommBank Copilot,” an AI-powered tool designed to resolve customer queries faster and help them manage their finances more effectively.
“Working in partnership with Microsoft, alongside other external partners, gives us the opportunity to access global expertise in a range of areas so we can offer more to our customers, including the incredibly evolving area of generative AI,” Gavin Munroe, CBA’s Technology Group Executive and Group CIO, said in a blog post at the time.
The CBA’s strong shift towards AI technologies signals a significant change in Australia’s IT landscape.
IT professionals know the value of developing skills associated with AI, but as more financial institutions and large companies follow CBA’s lead, demand for expertise in these areas is expected to increase. AI specialists will be in particularly high demand in this sector.
In the long term, the relationship between financial services, venture investment and AI should create an ecosystem effect and help strengthen Australia as a leader in both AI-powered financial services and entrepreneurial invention.
