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Transcript

We’re ready to move into our second CBA-driven session for today, and it’s titled Beneath the Surface, Exploring Payment Architecture. And I’d like to invite Amaya Robinson and Luke Jericho from CBA, who are going to be delivering a deep dive session today. Thanks, guys. So, I’m Amaya Robinson. Apparently I’m the founder of Powerboard, and Luke Jericho is now the new eCommerce crew lead. I’ve moved on to a new role, which is to lead health, but I’ve been invited to share the insights into why we built this proposition for merchants and our customers. But I’m going to hand over to Luke. Excellent. Thanks, Amaya. So, my name’s Luke Jericho. I’m the head of product now. Sorry, not the head of product. I was the head of product. Head of eCommerce for Commonwealth Bank. And yeah, really excited to chat to everyone today. Really good turnout, and I think looking at the agenda, there’s been some pretty interesting topics already. Kicking off with some of the global trends more broadly that we’re seeing through to those really good panel discussion pre-lunch, which hopefully everyone enjoyed with a couple of big hitters there from the CBA side, talking about payment trends down under. Amaya and I will then talk to you a little bit about that next level down around what is CBA doing, what are we seeing across the industry, and then what are we doing in response to some of those macro and consumer trends as well, to which I’ll give a little bit of a hint. It’s all about complexity and how do we actually simplify that for our merchant customers. So obviously, CBA as a bank now typically when we’re thinking about how do we service our business bank customers, obviously we’ve got lending, we’ve got deposits, but really the engine room for how our business customers operate really comes down to two things. How do they pay and how do they get paid? So from a payments perspective, that’s everything from suppliers, employees, through to getting paid with the goods and services that they offer. From a payments perspective, CBA has been leading the market now for the better part of 15 years. So we did a really big core banking modernization project about 15 odd years ago, and since then when you’re doing CBA to CBA transfers, that all happens in real time. The rest of the market has now caught up and a big push from the RBA around NPP. So if you’ve heard of NPP, the new payments platform, maybe you’ve made some payments using PayID or seen the OSCO brand around, that’s really the next iteration of payments across the industry. Really mature at the moment, particularly from a retail perspective. So you can easily log into the CommBank app and make NPP payments. But for us, we see the next horizon really is around how do we bring that into our business customer landscape? And then with the added background of things moving to API integrations, for example, like how do we initiate payments in real time and then make the payment in real time? And then added to that, you’ve got some of these overlay services that are coming through. So maybe you might have heard of Pay2. I know there was a few articles around Bonza Airline, for example, and Pay2 that were probably on the negative end of the publicity scale. But then other value add services, for instance, what CBA is doing with Namecheck, which is a really great example of an overlay service where we’re using our digital and sort of data capabilities to provide something really great for our consumers. So let’s say I want to make a payment to Amaya. I go into the CommBank app, I’d put in account name, Amaya Robinson, BSB and account number, and I’ll get one of three options once I go to sort of submit and it’ll tell me that name looks about right. Or maybe there’s not enough data from what we’ve seen to be able to validate that. Or actually, you might get a prompt that says, actually, that name doesn’t quite match what we’ve seen previously. And if I get that, maybe I’ll give Amaya a call and say, hey, do you mind, can I just double check your BSB and account number? Have I got it right? And so really looking at how can we provide more confidence for the consumers. How much did you transfer me? Provide some more confidence for consumers that, hey, actually, the person I’m paying, I know who it is, they’re going to get their money. And obviously with fraud and scams on the rise, that I’m not paying someone that I shouldn’t. So on the getting paid, and that’s probably where things become a little bit more interesting for us, certainly in the merchant acquiring space and e-commerce. So we’re doing things from bringing out, we were the first to bring out an Android terminal, Albert, if you remember that. But that’s really allowed us to scale in industry verticals with quite sort of bespoke capability for those verticals. So in healthcare, we’ve got an app that sits on the terminal, but also integrated to practice management software, private health insurance, Medicare claiming, etc. Hospitality, we’ve partnered with a business called Doshi, again, to really sort of navigate that complexity. So if you think about all of the ordering apps, Menulog, Uber Eats, etc., all the different types of POS and then having a payments capability, being able to bring all of that together and simplify it for our customers through to, you might have heard recently about a real estate offering that we’re bringing out, which is really addressing real estate agents and strata managers, for example. So how do we focus in where it’s needed on specific industry verticals? And then one of the really big pieces of work that’s been happening over the last couple of years from the merchants perspective to really looking forward what’s going to support us and be that foundational tech over the next sort of 10 to 15 years. We’ve been doing a really big piece around merchant modernization and that core infrastructure. And so hopefully that will allow us to move quickly. But I think everyone would probably recognize that CBA moving quickly isn’t as fast as a fintech moving quickly. And so not only are we investing in our core technology capability, but actually we’re investing in partnerships as well. And I think you’ll see that across the market from all of the banks around how do they partner a little bit more with fintech players so that they can bring capability to market quicker for their customers. And so a really great example for us with our partnership with PayDoc to bring the Powerboard capability to life. And then obviously OSE to bring the plug in for ÃÛ¶¹ÊÓƵ to be able to connect into that ecosystem. So really important for us to be partnering and bringing things to market quicker. You might have seen the X15 Ventures logo. So I’m not sure if everyone’s sort of across that, but that’s CBA’s Venture arm. And there’s been some really great investments and innovation that’s come out of X15 as well from a payments perspective. Only yesterday there was an announcement came out around a business called True You, which is around identity management. How can I share securely my identity credentials or about me to a trusted third party online through to other initiatives. I talked about Doshi and other ones like Payable, for example, that work in the local government space around optimizing that bill collection process. So not only are we working sort of with the mothership and some of these partners, but actually through the Ventures arm as well. And so, yeah, like I said, you’ll definitely see more and more of that coming through. So what is CBA’s broader part to play in this? I’ll probably reeled off, I don’t know, 10 different products and capabilities there. As a transaction banker who would typically work with our customers for deposits or F-POSS or corporate cards, they’ve actually got to manage or be across around about 80 products. And so if you think about as a business, one, I probably don’t care about half of those products anyway. And two, I don’t have enough time to really sort of dive deep into it. And so the role that the bank and the transaction bankers play is how do we understand the need that our customer is looking to solve for? And then how do we connect them with the right capability internally with the bank? And so as we expand our capabilities and for Powerboard specifically, the value added services or connected services that come along with that, it’s really important for us to be thinking about how do we simplify that to our customers? So, as an example, you look here, pretty sort of hats off to the GDA or go to market team for putting together a pretty slick little UI there on a payment screen. But even if you look at this here, you’ve got about nine different payment methods. So if you want to enable that for your customers or your businesses that you work for or work with, that’s nine different things in the back end that you’ve got to connect to. And more and more of these sort of connected services or payment methods, et cetera, are coming out at the moment. And so when you’re thinking about that and merchants are not just having to navigate that complexity from a product and service perspective, but also on the consumer side, consumer expectations are changing. They want simplicity. They want it easy to use, intuitive. But then they also want optionality. They want more sort of payment methods, et cetera. And so again, coming back to how do we bring it all together to navigate that complexity of all the back end integrations, all the back end partners that need to be there to enable a really slick, seamless front end, that’s where we’re starting to think about orchestration and how can we play a role in that. And so I’ll hand over to Emmaa to talk through how it’s sort of simplifying that back end to a simple front end for our customers. Thank you, Luke. So I’m not always good on these clickers. Let’s see how I go. So I think Luke talked about consumer changing needs and also on the panel earlier today we heard about consumers using mobile phone as a more prominent method of payment. In our Powerboard offering, we support merchants to support their customers wanting to buy product using different channels. And we make it really easy for you to manage those channels and design experiences for those consumers across those channels. A mobile phone experience will look very, very different to a website experience. And through the toolkit, which is Powerboard, we give you very simple tools to manage that experience. The way we do that is that we have a simple integration. The simplicity of the integration really is the key part of our proposition. And that simplicity makes it a really lower cost of implementation. But more importantly, longer term, you benefit from that integration by unlocking all the new features and capabilities that we will be rolling out on a regular basis. So it’s a long term investment. The way we make that integration so simple for you is through our developer hub. A hub that’s been designed for developers. It has the business documentation as well as technical documentation. It has all your APIs and SDKs that you can access. Even better than that, we have pre-coded very simple user journeys for you that you can just, I’m going to use the term and I’m sure the technicians in the room won’t like it, but you can cut and paste it into your environment to really quickly enable experiences across those different channels. And my favourite one, being an avid shopper, is using mobile to pay. And where mobile, as an example, that you can configure a great experience is in our stack, in our capability. Once you’ve integrated, you get a whole menu of payment methods. And the best payment method to make available in your mobile app ecosystem are digital wallets. Because they’re very simple, low friction, checkout experience then drives a higher conversion rate. And an example of those digital wallets are PayPal, buy now pay later, but also what’s coming very soon is click to pay. In this morning’s session, we talked about the need to lower fraud on cards. Click to pay is going to be a new and very dominant digital wallet where consumers have already been ID’d. So you have safety and security features baked into that digital wallet. They’re already authenticated customer. It’s got enough friction in there to be safe, but low friction to drive conversion. And it will be a banked back digital wallet. And that will be available on our platform. So moving from payment methods, so I’ll just cover one other thing. In terms of payment methods, we’ll also be supporting gift cards, buy now pay later, digital wallets, traditional card payments. And we will continue to build out payment methods over time. But because you’ve integrated, you don’t have to redo that work. You can leverage that work to access any new payment method that we make available to you. And again, configure it to the customer experience that you want to design by each channel that you support. Now I’ve got new glasses and my eyesight actually should be better, but it’s not. I can see on there, there’s fraud protection. And fraud protection is also of course very, very important for payments as we heard earlier today. We will offer fraud protection services and capabilities again that you can tailor for your channels. So a Certify is an example of a value added service that you’re able to access through our platform. But also baked into our platform are things like 3DS2, tokenization, all these add to your fraud minimization strategies. What’s also important about our new product is all the value added services that we will be offering and different types of payment experiences. So we will support subscriptions, recurring payments, guest checkout, etc., etc., split payments. All those type of experiences will be available through the platform in a very simple way, again, using the developer hub to pick and choose the type of experiences that you want to develop in your channels. The other thing that we offer through our wonderful platform is a portal. Through that portal, you will have real-time visibility of every transaction that is being processed through the platform. You will also have visibility of downstream gateways and how they are performing. You will have access to reporting. You will also be able to configure switching things on and off. An example might be PayPal is down. You don’t want to have that surfaced up in the checkout experience to save customer pain. You can switch it off for a few hours and then when PayPal is back on, you can switch it back on. So you can do that in real-time via our self-service portal. Lots of data reporting capability. We talked about data earlier today. You’re able to extract the data from the portal and import it into your systems to automate reconciliation, to build data models. Again, all accessible through our portal and really, really easy to use in terms of data formats that you can extract from the portal. I think one of the very nice features that we have is something called vaulting. I’m very conscious that as payments geeks, we use payment terminology. Vaulting is basically how we store data safely and the vault is where data is stored encrypted in a safe way. Not that it will be hacked, but if it is hacked, no one can use that information anyway. I think what’s really important is, yes, we partnered with a fintech, but it’s backed by a bank. And through that backing, we have invested significantly in the platform to gold plate the service for reliability, availability and data protection. So, if you think about this as a gateway into the rest of the CBA product offering that Luke introduced us to earlier today. And through Powerboard and partnering with CBA, you get access to this capability and then open up to other CBA services and becomes a whole of product offering. So, that is an introduction into Powerboard. In summary, we invested in this product to really help our customers solve for choice, consumer choice. Consumers want payment choice. It’s so important in the e-comm channel that you do that. It costs you a fortune to get consumers into your e-comm channels. You don’t want them not to pursue or complete the transaction or the purchase because you haven’t given them a payment choice. We solve that for you here. We solve for ease of integration and we also solve for future innovation because once you’re integrated into the platform, we will release new features on a regular basis and you get access to that simply through the developer hub and also the self-service portal. So, it’s an investment for your future. And ultimately, the most important thing is security and protection of your data because this is a product that is backed by a bank. On that note, I’m going to introduce Paul Dunstan who has done a lot of work in partnership with us and Paydoc to develop the plug-in to get access to this even more easier, faster and simpler. Thanks, Per. You don’t need a clicker? You can be the clicker. I can be the clicker. I can be the clicker. I can be the clicker. I can be the clicker. I can be the clicker. I can be the clicker. I can be the clicker. I can be the clicker. I can be the clicker. Okay. For those of you who don’t know me, my name is Paul Dunstan and I’m Head of E-commerce at OSC Digital. We are a longstanding ÃÛ¶¹ÊÓƵ Commerce partner and we’re thrilled to be here today. We’re thrilled to be here today for a couple of reasons. We are very lucky to have been selected to support the Commonwealth Bank, Australia’s largest bank in the development of what is the first ÃÛ¶¹ÊÓƵ Commerce payments extension backed by a bank. That is no small feat. It’s a very complex task and it’s something that we’re very proud to have been involved with. And our involvement really extended to assisting the team at CBA and PayDoc and also working with the great guys at ÃÛ¶¹ÊÓƵ that we’ve known for many years to architect the extension. Additionally, really undertake what is our kind of bread and butter, which is advising also the team at CBA on the things that we do day in, day out, which is ÃÛ¶¹ÊÓƵ Commerce work. There’s a certain way to build things so that it’s future proof, which was a major component of this project. And there’s a certain way things are done in ÃÛ¶¹ÊÓƵ world where it ensures that all of the other people who are likely to use it far beyond the reaches of OSC Digital will be able to do so without any issue and be able to escalate and triage any issues that do occur, given the importance of payments, very quickly without any friction. Friction today has been a word that I have noticed pop up time and time again, and I don’t know whether it’s been burned into my brain somehow today, but I know many of you probably have noticed it. One of the key components that OSC were pretty clear on when working with CBA on this project was ensuring that a customisable checkout experience was possible. When CBA and PayDoc started the initial program of work with OSC, the brief was pretty simple. We want to get the majority of the popular payment methods running through one system and into ÃÛ¶¹ÊÓƵ Commerce, one of Australia’s most popular e-commerce platforms and certainly popular at a certain size in market. Now, one of the key strengths that many of you know who’ve worked with ÃÛ¶¹ÊÓƵ Commerce in the past will know that the checkout is extremely customisable. But if you’ve worked with other payment methods, often they’re iframed, they’re locked down, it’s security, security, security, red tape, can’t customise it, can’t do anything. In the case of Powerboard’s CBA extension, those issues go away. So you can essentially customise it exactly how you want, making sure your brand’s on point and everything’s running fast so that that seamless checkout experience is maintained. That, although it seems like a small thing, is super cool for retailers, especially B2C retailers. They want to know that their brand, all the way from their homepage, through their category pages, product pages, carton checkout, maintain a consistent user experience. And that experience is something they can trust and rely on on big days, the Black Fridays, the Cyber Mondays, the Boxing Days, so that when those volumes go up, and we’re talking like from an agency perspective, we’ll generally see data that is 10x of what a normal day is across those sorts of periods. They want to know that their checkout looks good, functions, and works seamlessly in every way. So for the ÃÛ¶¹ÊÓƵ world, certainly in APAC, for us to have access to a commerce extension for payments, which is backed by our biggest bank, you know. I would certainly say a fantastic ÃÛ¶¹ÊÓƵ Commerce partner in OC Digital. And look, ÃÛ¶¹ÊÓƵ themselves is really encouraging, I think. And rather than having to, you know, be supported by groups that aren’t primarily local here in Australia, some of the bigger groups from overseas, it’s a great thing, I think, and certainly something that I think CBA should be congratulated for as part of the initiative. And I think also the PayDoc team in the role that they’ve supported behind the scenes in orchestrating the payment methods, which is Afterpay, PayPal, Visa, Mastercard, AMEX, Apple Pay, Google Pay, and I think that’s it. So yeah, that’s what happens when you look at a project too closely for too long. But yeah, look, thank you certainly to CBA for bringing the product to market. I think they should be congratulated with a little round of applause. And thank you for hosting today. Did anyone have any questions around the product in terms of what it does? Anything they want to know? Or is it all relatively straightforward? Cool. Sign up and get going. Thanks, Paul. Appreciate it. Yeah, Paul, thank you. Thank you, Amaya and Luke as well for a great presentation. Yeah, congratulations to everyone involved in the Powerboard project. It is really awesome to see all that capability there in one place. I definitely know in the past to have all those options on ÃÛ¶¹ÊÓƵ Commerce or in that environment was nowhere near as straightforward as that. So that’s quite exciting and definitely the ability to customise it is really cool too. So congratulations to the team. So our next session for today and Paul just sort of touched on it briefly in his talk track before around performance. And everyone loves to have a fast website. We know that with so many applications in your environment now, there’s a lot of areas where performance can be impacted, obviously with increases in traffic at different stages. The ability to deliver speed in your commerce environment is really important. So we’ve got Kam Radkacharachan from ÃÛ¶¹ÊÓƵ to come join us today to give us a bit of an insight into his experiences with the ÃÛ¶¹ÊÓƵ Edge Delivery Service. Thanks, Kam.