Westpac was using Data Republic, a data governance platform it had invested in through its Reinventure arm, to create data-driven insights for institutional clients before the startup collapsed last May.
DataX, which has been in development for two years and was built by an internal Westpac team, was soft launched eight months ago with select customers in the private and public sectors; the trials gave the bank confidence to roll it out more widely.
CBA and Quantium created CommBank iQ last year and CBA is using the joint venture to offer analytics to large enterprise customers to help CBA win more customers from other large banks.
Quantium had worked with National Australia Bank under a long-term agreement using anonymous card transaction data to create information for its customers, but switched to working exclusively with Commonwealth Bank card data. prior to the announcement of the joint venture.
Westpac expects deeper interrogation of large customer spending data to help reduce lending risk for expansionary capital in the retail industry. DataX will also be used to help customers develop loyalty programs.
The new capability comes after Westpac announced last month that it would build a new transactional banking platform for its institutional bank with 10X Banking. It will also see Westpac create new digital services for its customers, including cash management, cash flow forecasting and real-time payment processing.
Westpac Institutional Bank chief executive Anthony Miller said data insights are the new currency for business growth and help clients “deeply understand their market conditions, identify and quantify new opportunities for growth and to provide tailored products and services”.
The product will be offered as part of a software-as-a-service (SaaS) type revenue model and will also be used to help in the acquisition and retention of new customers.
“DataX takes our relationships with our customers beyond traditional banking and finance, to provide tangible insights to customers to optimize logistics, take advantage of market share opportunities, or realize their growth strategy. said Mr. Miller.
He said all businesses talk about the value of using data, but it needs to be integrated into day-to-day operations to be effective, empowering business teams in the field to make decisions using it. “It’s more than the power of data itself, it’s about accessing rich information and knowing how to integrate it into day-to-day operations that facilitate fast and informed decision-making,” he said. he declares.
Westpac hopes DataX will help large retail and real estate groups improve fulfillment processes. It also develops predictive tools to help estimate things like inventory levels based on consumer demand projections.
Woolworths took a 75% majority stake in Quantium last April, having originally acquired a 50% stake in the business in 2013. The supermarket uses its technology to make decisions on pricing, product lines, l store layout and promotions.