CBA Partners with Global AI Leader, Share Price Up (ASX:CBA)

By ,

The Commonwealth Bank of Australia [ASX:CBAis set to boost its AI capabilities by taking a minority stake in

CBA will work with to generate better customer and community outcomes by leveraging the power of artificial intelligence. is a cloud-based machine learning platform.

ASX CBA - CBA Share Price ChartSource:

Over the course of 12 months, CBA share price has gained 55%.

CBA continues to push the tech envelope

First it was buy now, pay later (BNPL).

Then it was the recent — and historic — foray into crypto.

And now, CBA is embarking on an adventure in AI.

Aiming to dispel the stereotype of a stodgy, conservative bank, CBA seems to see itself in a race to embrace the future first.

And with the rollout of its BNPL option StepPay, and now the first ever Australian major bank to offer crypto services, CommBank looks like it’s heading the race.

Today, the bank announced it’s taking a minority stake in, a tech firm CBA described as a global leader in artificial intelligence.

As part of the partnership, CommBank will provide’s AI cloud platform to its entire organisation, including data scientists, data engineers, and business users.

Explaining the potential of the partnership, Commonwealth Bank CEO Matt Comyn said:

The partnership will further differentiate and extend our artificial intelligence capability to better anticipate customer needs and reimagine products and digital experiences to meet those needs.

This partnership will accelerate our ability to deliver a broader customer proposition through more personalized experiences, which delivers greater value for our customers.

But how exactly will the partnership reimagine digital experiences?

CBA’s chief data and analytics officer Dr Andrew McMullan had an answer: will also help us to better predict bills and forecast cash flows for both retail and business customers so they can plan ahead.

Customers want to be in control, and through the combination of our award winning app, powered by artificial intelligence, we can deliver products and services in the moment to manage unexpected expenses or irregular incomes.

How to Limit Your Risks While Trading Volatile Stocks. Learn more.

CBA: too big to innovate?

When CBA first announced its own BNPL offering in March, Ryan Dinse, who heads Exponential Stock Investor and Small-Cap Momentum Alert, kindly offered me his view on what CBA’s foray meant for BNPL players.

His view was thought-provoking:

Although some see this as a threat to BNPL pioneers like Afterpay, in my experience, big institutions that try and copy innovation usually fail to make too much of a dent.

There are a few reasons for this…

The main two are they don’t have the skillset or internal culture for the constant innovation needed to make new models succeed. As my old soccer coach would say, “They’re looking for where the ball is, not where it will be.”

And secondly, they’re making too much money in the short term from the status quo to really embrace disruptive models.

Why am I raising Ryan’s interesting point now?

Well, as part of its partnership, CBA will gain a dedicated team of machine learning engineers to work full-time on ‘developing new AI solutions within the bank.

Is this CBA’s way to foster an innovator’s culture? Can the bank import an innovative culture by transplanting a team from to its offices?

I don’t know. But it’s interesting that this partnership suggests CBA is trying to heed the advice of Ryan’s old football coach — partnering with to chase where the ball will be, not where it is.

Time will tell how successful the partnership becomes but I, for one, find CBA’s recent moves fascinating.

As I mentioned last week, in business, evolution and adaptation is key.

CommBank won’t remain a top bank if it does not detect and act on changes altering the financial landscape.

For more analysis, cutting-edge commentary, and thoughts at the frontline of the financial revolution, I highly recommend checking out New Money Investor.

It’s a research service run by our Editorial Director Greg Canavan and Editor Ryan Dinse.


Kiryll Prakapenka,
For Money Morning

PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here

About Kiryll Prakapenka

Kiryll Prakapenka is a research analyst focusing on investigating the biggest trends in investments. Kiryll brings sound analytical skills to his work, courtesy of his Philosophy degree from the University of Melbourne. A student of legendary investors and their strategies, Kiryll likes to synthesise macroeconomic narratives with a keen understanding…

CBA Shares Flat: 3Q22 Results Reveal ‘Continued Margin Pressure’ (ASX:CBA)

Australia’s largest bank — the Commonwealth Bank of Australia [ASX:CBA] — released its 3Q22 results, reporting margin pressures and heightened competition.

Humm Share Price Soar on Takeover Proposals amid BNPL Rout (ASX:HUM)

Humm Group [ASX:HUM] share price is up over 20% as the buy now, pay later (BNPL) stock flags potential takeover bids.

It’s a Battle for Control…Where Do You Stand?

These monstrosities give the architects of our current malaise even more control over your money.

ASX 200 News Weekly Wrap — Magnis, Creso, Cettire, Crown and Commonwealth Bank

We review this week’s ASX news, from MNS and CPH getting caught up in ASIC probes to CBA shares tanking on their latest quarterly.

ASX 200 News Weekly Wrap — Reviewing VUL, SYD, Bitcoin, and Gold

We review the week that was, from bitcoin reaching all-time highs, to gold breaking out amid inflation fears.  Let’s start with reviewing the local ASX news.

CBA Takes the Plunge into Crypto

‘Research from CBA has found a large number of its customers want to access crypto assets as an investment class and are already buying, selling and holding crypto assets through a variety of crypto exchanges.’