The major bank has partnered with Microsoft and KPMG High Growth Ventures to deliver the incubator, with Microsoft bringing its platform and engineering capability, while KPMG will provide advisory services.
X15 will be a wholly owned subsidiary of CBA, with funding provided from the bank’s $1 billion it has already committed to technology and innovation. The venture will also have its own delivery model and a dedicated management team.
CBA said X15 will use the its franchise strength, security standards and finances to build standalone digital businesses, which will also benefit from and create value for the bank.
The big four bank is aiming to provide a broader range of solutions to complement its core product proposition.
The first two ventures being launched with X15 are a digital home buying concierge, Home-In, which helps users through the purchase process, and business insights aggregation tool, Vonto.
CBA chief executive Matt Comyn commented: “X15 will enable us to innovate more quickly, and continue to offer the best digital experience for our customers.”
CBA general manager of digital innovation and growth, Toby Norton-Smith, will be leading the firm as its newly appointed managing director. He noted the X15 will allow the major bank to open its door and partner more easily with entrepreneurs.
“Under its umbrella, we will create an environment for new businesses to flourish, we’ll empower Australia’s innovators and bring new solutions to market designed to empower customers as never before,” Mr Norton-Smith said.
“X15 businesses will be nurtured and developed as start-ups but will have the scale and reach of CBA behind them to achieve rapid growth.”
Microsoft Australia managing director Steven Worrall commented: “I believe that the next wave of major technology breakthroughs will come from partnerships such as this, bringing together our deep technical capabilities and absolute clarity about the business challenges that need to be addressed.”
Meanwhile Amanda Price, head of high growth ventures at KPMG said her firm is looking forward to working with the new enterprise to build an ecosystem to support new ventures.
“A performance mindset can be the difference between success and failure for start-ups,” Ms Price said.
“From founder programs designed to unlock sustained high performance, to business and strategy solutions for high-growth ventures, there will be a wealth of smart tools at their disposal to help them overcome the challenge of scaling at speed.”
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
Sarah has a dual bachelor's degree in science and journalism from the University of Queensland.
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