The move strengthens the bank’s digital lending capabilities
Commonwealth Bank has entered an agreement to acquire cloud-based invoice lending platform Waddle, via its venture-scaling arm, x15ventures.
CBA has an existing relationship with Waddle through its Stream Working Capital product, which enables the bank’s business customers to access cash tied up in unpaid invoices with a digital cash-flow solution tied to business accounting software like Xero, MYOB, and QuickBooks.
By acquiring Waddle and bringing the technology in-house, CBA can speed up the growth of its Stream Working Capital product and at the same time, continue to benefit from the Waddle platform’s automation and flexibility.
Mike Vacy-Lyle (pictured above left), CBA group executive Business Banking, said CBA’s new acquisition further supports the bank’s focus on simplifying finance. The move will not only make it easier for businesses to access funds through its Stream Working Capital product, it will also provide its customers with the best digital experiences, he said.
“Access to working capital is vital for many businesses and Stream Working Capital offers greater flexibility, simplicity, and faster access to cash flow,” Vacy-Lyle said.
A first for a major Australian bank, Stream Working Capital was launched as a digital end-to-end solution that uses outstanding invoices as loan security, with the loan size reducing as invoices are paid.
“Through acquiring the Waddle platform, we can continue to provide the best integrated digital working capital solution in the market and support more of our customers with faster funding assessments and approvals,” Vacy-Lyle said. “This is a positive step in helping more Australian businesses to maximise cash flow and drive business growth.”
Toby Norton-Smith (pictured above right), managing director at x15ventures, said the acquisition provides the bank with a great opportunity to maximise its existing investments for the benefit of its customers.
“This will bring together a phenomenal product and distribution arm in Stream Working Capital, with the secure technology and operating environment of x15ventures, giving Waddle the flexibility and freedom to continue innovating at pace,” Norton-Smith said.
“We set up x15ventures so that digital native businesses can operate how they’re used to – both culturally and technically – while also getting access to the assets and reach of one of Australia’s leading banks. We look forward to welcoming Waddle to x15ventures and helping them continue to realise their ambitions to scale and support more small businesses.”
The transaction is expected to be completed reasonably soon after customary conditions have been satisfied, CBA said in a media release.
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