Westpac 10x fintech platform to go live in 2020
Westpac is banking its future in the clouds through its alliance with 10x Future Technologies digital-platform services.
Westpac plans to use its investment in Antony Jenkins’s 10x Future Technologies to boost its digital presence and customer engagement, with the bank targeting a go-live date next year.
Westpac chief executive Brian Hartzer is touting the investment in the digital-only platform as a way to bring new fintech services and products to market on its own and with partners.
Britain-based 10x is a cloud-banking technology firm founded by former Barclays CEO Mr Jenkins. The Australian revealed the detailed negotiations between Westpac and 10x in June.
JPMorgan has also been linked to a potential stake in 10x, while Britain’s Nationwide, China’s Ping An and consulting house Oliver Wyman are already investors.
The company’s name is based on the claim that it made banking 10 times easier than it had traditionally been.
Mr Hartzer said its investment would allow it to operate a “bank-as-service” model but was coy about not giving away too much information on the alliance.
“It’s a ground-up platform that has really thought about how you need to have a system to work in a customer-centric world and that is flexible to allow a variety of different user experiences to be created.
“We find that very attractive given our position and some of the partnerships that we have.”
As part of the alliance with 10x, Westpac plans to take a minority stake in the company, but would not disclose the financial consideration involved. The partnership will see 10x involved in upgrading Westpac’s digital banking platform. Analysts quizzed Mr Hartzer about the investment on Monday, prompting him to say it could be viewed as either a “defensive or offensive” move.
“Essentially it’s a ground-up new platform that opens up a new avenue of growth for us, both directly and in partnership,” he said.
“It is possible that some of the learnings we’ve had around loyalty (pilot program) could feature in the sorts of things that we do.”
The major domestic banks are having to step up their focus on technology as global giants wade into their territory and start-up banks also seek to chip away at their market share.
Commonwealth Bank CEO Matt Comyn used a key address earlier this year to highlight technology spend as he talked up a $5bn investment over five years. It has also taken a strategic stake in Swedish payments group Klarna to take on the likes of ASX-listed Afterpay and Zip.
The 10x website cites its “next-generation cloud-native technology platform” and says it can help banks engage their customers in a way that is more timely, relevant and personalised.
Mr Jenkins was the CEO of Barclays for three years until mid-2015, when he was ousted over differences of opinion with the board.
Westpac’s investor presentation also noted that it had $150m in committed capital with venture firm Reinventure, which targets emerging fintech companies.
The bank also has direct holdings in Zip, home loans firm Uno and will invest in 10x directly.
Why global money is rethinking ‘anything but China’ trade
Big investors are preparing to play in China again, but the wild swings are not for the faint hearted.
Country’s biggest super fund to cop $27m fine
Superannuation members with multiple accounts tend to be the least well off and work multiple jobs, a court has heard as the country’s biggest superannuation scheme is set to pay a record fine over its alleged conduct.