The Commonwealth Bank of Australia (ASX: CBA) is looking to "build Australia's future economy" through its new joint venture with data science firm Quantium.
The joint venture will see data procured from Australia's top retail bank to deliver data-driven insights to Australian businesses, governments and investors.
The partnership is the second the banking giant has announced today. The announcement of its joint venture with Quantium followed news its partnered with e-commerce operator Bigcommerce Holdings IncB.
At the time of writing, the Commonwealth share price has sunk from its intraday high of $95.18 – which was yet another 52-week high. Shares in the bank are currently swapping hands for $94.85, representing a 0.99% gain from its previous closing price.
Let's take a look at Commonwealth Bank's newest joint venture.
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Commonwealth Bank X Quantium
Commonwealth Bank and Quantium have teamed up to create CommBank iQ.
CommBank iQ will use data pooled from the Commonwealth Bank's retail transactions and Quantium's data science capabilities to deliver insights to Australian businesses, policymakers, and investors. The bank says this will help "shape and drive the country's future economy".
The Australian Financial Review (AFR) reported Quantium ditched its long-term agreement with Australia National Bank Ltd (ASX: NAB) in favour of its joint venture with CBA.
According to the AFR, Quantium approached the Commonwealth Bank, hoping it could access CBA's unmatched data pool of Australian retail transactions.
According to the bank, CommBank iQ will offer various solutions, including insights reports, decision support tools, and AI decision engines that will use data to automate decision-making. This will likely prove useful to institutions looking to act on customer insights.
Both CBA and Quantium will contribute team members to the joint venture. Quantium will also contribute its big data tech stack.
CommBank iQ will use best practice data ethics and governance standards. All data handled by the joint venture will be aggregated and de-identified.
CommBank iQ will begin trading in the second half of 2021.
Commentary from management
The Commonwealth Bank's group executive of institutional banking and markets, Andrew Hinchliff, commented on the joint venture. Hinchliff said CommBank iQ would help Australia's leading institutions steer the nation's economic recovery and transition.
As Australia's biggest bank, we see more transactions than any other institution in the country…
CommBank iQ will help Australian institutions become more customer centric and better able to quickly identify and respond to both complex problems and significant growth opportunities.
Quantium's CEO Adam Driussi said:
Commbank iQ's experienced consultants will also offer the commercial skills and sector experience to identify and unlock hidden value for a wide range of institutions. It's a truly exceptional solution that promises to solve challenging problems and create better products and services for Australians.
