The Commonwealth Bank of Australia (ASX: CBA) share price dropped by 0.83% today, however, CBA fared better than most, with the S&P/ASX 200 (INDEXASX: XJO) falling by 1.34%.
CBA set to launch start-ups
Commonwealth Bank CEO Matt Comyn today announced the launch of X15 Ventures, an Australian technology venture building entity, designed to deliver new digital solutions targeted at both the consumer and business segments. Its strategy will be to nurture and develop start-ups and provide support for them to achieve rapid growth by having the scale and reach of Commonwealth Bank behind them.
X15 Ventures a stand-alone digital business
X15 Ventures will be a wholly-owned subsidiary of Commonwealth Bank, but it will operate as a stand-alone digital business. To deliver X15 Ventures, Commonwealth Bank will partner with Microsoft (NASDAQ: MSFT) and KPMG High Growth Ventures. Microsoft will bring its platform and engineering capability to the initiative, while KPMG will provide its expertise in advisory services.
Funding for the new venture will be provided from Commonwealth Bank's $1 billion annual technology investment resources, its own delivery model, and support from its management team. The appointed Managing Director of X15 Ventures is Toby Norton-Smith.
The company believes X15 will enable Commonwealth Bank to more easily collaborate and partner with external entrepreneurs.
X15 Ventures intends to launch at least 25 ventures over the next five years.
First two ventures announced
Its first two new ventures, announced today, are set to be Home-In, a digital home buying concierge, and Vonto, a business insights aggregation tool.
Home-in, a virtual home buying concierge, is designed to simplify the complex process of buying a home. Smart app technology helps buyers navigate the purchase process more easily, leverage a platform of accredited service providers like conveyancers and utility companies, access tailored checklists and a dedicated home buying assistant who will respond to queries.
Vonto is a free app available to all small business owners. It draws data from Xero, Google Analytics, Shopify and other online business tools and presents the data and analytics in one location.
Today's announcement comes less than a week after Commonwealth Bank announced the launch of Klarna, one of the world's biggest digital payments providers, in Australia.
Commonwealth Bank is due to announce its interim results next Wednesday, February 12.
