Artificial Intelligence (AI) is fast becoming a feature of Australian business – whether senior management likes it or not. And as employees become more comfortable with tools like ChatGPT, businesses will need to create, implement and enforce rules to govern its usage.
The AI Train Has Left the Station One of the central themes to emerge from Cuscal’s flagship thought leadership event, Curious Thinkers 2024, was the rapid adoption of AI technology by Australian workers, many of whom are already using it in their daily tasks. Research commissioned by Salesforce and Slack reveals that 53% of Australian professionals are actively using or experimenting with generative AI in their work environments, a notable increase from 36% in 2023. Alarmingly, 44% of employees in Australia are utilizing generative AI without the oversight or permission of business leaders, according to research conducted by automation specialist technology firm UiPath, which surveyed over 1,100 Australian workers.
During the Curious Thinkers 2024 session titled The Future of Operating Models and Workforce Shifts in the Age of AI, the panel discussed that there can certainly be benefits from employee AI experimentation and agreed that employees are often best placed to identify where AI can improve day-to-day tasks and unlock efficiencies. But without proper guidance, a ‘cowboy’ attitude to AI deployment carries numerous risks, including compliance breaches, data privacy violations, and misaligned business objectives.
Playing by the Rules Businesses need to develop and implement guidelines or policies for AI usage even if they’re not using the technology in any official capacity – because studies show that employees are using it without being expressly permitted.
These rulebooks will vary between businesses, but some of the ideas touched on by the panel include:
1. Program usage Businesses must clearly specify which AI programs can be used by employees. This ensures that all AI tools are vetted for quality, safety, and compliance – reducing the risk of unsanctioned AI use.
2. Data integrity Businesses need to define what data can be used as input for the AI. This is crucial for maintaining data privacy and security, and for ensuring that the AI operates within its intended parameters.
3. Train and customise For an AI tool to be truly fit for purpose, it needs to be trained on a business’s own data so it can refine and optimise its output. This even extends to off-the-shelf AI solutions, which should be trained using internal data to help give context to the work being done.
4. Align with business goals All AI experiments and use cases should be in direct alignment with the business outcomes that the business is driving. This helps to ensure that AI usage contributes to the overall objectives of the business, rather than becoming a distraction.
Lead, Don’t Follow Each payments business will need to consider its own operational structures and reporting lines. This will ensure that any AI experiments are being conducted appropriately, and that successful ones can be developed and further implemented across the organisation.
Ultimately, the exact shape of these rules and reporting lines will depend on individual business goals, but these four common themes should provide a useful starting point for executives looking to shore up their AI practices.
Business Integration: According to an independent survey commissioned by business loan comparison platform Small Business Loans Australia 60% of Australian businesses are already using or planning to integrate AI into their operations over the next two years, with 37% having adopted it already.
Productivity Gains: Embracing the use of AI to improve existing processes and enhance platforms is the safest place to start your generative AI journey and deliver incremental benefit over time.
These statistics highlight not only the rapid growth and integration of AI within Australian workplaces but also emphasise the necessity for organisations to take proactive steps to ensure they harness these tools effectively while safeguarding compliance and aligning with strategic goals.
Important Information: Information in this article is current as at 8 January 2025 and is subject to change. This article represents the opinions and views of the personal experiences of the panellists only. This article is provided for general information purposes only and does not have regard to the situation or needs of any reader and must not be relied upon as advice. Before acting on this information, consider its appropriateness to your business Cuscal Limited ABN 95 087 822 455.
Brendan Dowling, Australia’s Ambassador for Cyber Affairs and Critical Technology, Department of Foreign Affairs & Trade at Curious Thinkers 2024 in Sydney.
Brendan leads Australia’s international engagement on cyber affairs and critical technology issues, while delivering cyber capacity building, crisis response and building resilience across our region. He also served as the First Assistant Secretary for Digital and Technology Security Policy in Home Affairs.
Watch the video to hear from Brendan on the evolution of cybercrime and the role of every organisation in making clear design and deployment choices that increase the protection for themselves and the broader ecosystem.
Important Information: The information in this web copy and video are current as at 12 November 2024 and is subject to change. This information is provided for general information purposes only and not for the purpose of providing legal, financial or investment advice. The information contained in the web copy and video does not constitute an offer, a solicitation of an offer or to enter a legally binding contract. The video contains material provided by third parties. While such material is published with the necessary permission, Cuscal does not accept any responsibility for the accuracy or completeness of any such material. Although Cuscal has made every effort to ensure the information is free from error, Cuscal does not warrant the accuracy, adequacy or completeness of the information. Except where contrary to law, Cuscal intends by this notice to exclude liability for the information. This web copy and video are not to be distributed to any other party without Cuscal’s prior written consent. Cuscal Limited ABN 95 087 822 455.
Charlotte is an Organisational Psychologist who has worked with organisations in Asia, the United States and Australia, helping them shape their organisation-wide innovation programs and supporting leaders to create great places to work. She has written about innovation, the future of work and organisational psychology.
Watch the video to hear from Charlotte on what it takes to build a workplace that thrives in an era of constant change, growing expectations, and unprecedented opportunity. Are you ready to shape the future?
Important Information: The information in this web copy and video are current as at 12 November 2024 and is subject to change. This information is provided for general information purposes only and not for the purpose of providing legal, financial or investment advice. The information contained in the web copy and video does not constitute an offer, a solicitation of an offer or to enter a legally binding contract. The video contains material provided by third parties. While such material is published with the necessary permission, Cuscal does not accept any responsibility for the accuracy or completeness of any such material. Although Cuscal has made every effort to ensure the information is free from error, Cuscal does not warrant the accuracy, adequacy or completeness of the information. Except where contrary to law, Cuscal intends by this notice to exclude liability for the information. This web copy and video are not to be distributed to any other party without Cuscal’s prior written consent. Cuscal Limited ABN 95 087 822 455.
Cuscal is expected to list on the ASX on 25 November 2024 under the ASX ticker “CCL”.
Market capitalisation at Offer Price of $479m.
Part of the primary proceeds to be used to support Cuscal in executing its growth strategy.
Cuscal Limited (Cuscal or the Company), today lodged a Prospectus with ASIC in relation to an Initial Public Offering of 134.7m shares at a price of $2.50 per share (Offer Price). The Offer size of ~$337m comprises $40m of new capital to be raised by Cuscal, with the remaining ~$297m enabling existing shareholders to realise part of their investment in Cuscal (Shares).
The proceeds Cuscal receives from the issue of new Shares under the Offer will initially be invested in investment securities. Cuscal also expects the funds to be used to support working capital requirements; maintain a strong balance sheet and meet regulatory capital requirements; support continued investment in system resilience; and executing Cuscal’s growth strategy.
The Offer comprises:
The Retail Offer, consisting of the:
Broker Firm Offer, which is open only to Australian and New Zealand resident investors who are not Institutional Investors and who have received an invitation from their Broker to participate;
Employee and Director Priority Offer, which is open to Eligible Employees and Directors in Australia who may each apply for a guaranteed minimum allocation of $5,000 worth of Shares; and
The Institutional Offer, which consists of an invitation to bid for Shares made to Institutional Investors in Australia, New Zealand and a number of other eligible jurisdictions.
The Institutional Offer includes a cornerstone process which was commenced prior to the Prospectus Date. It is expected that certain Institutional Investors will make a commitment to acquire Shares under the Institutional Offer prior to the Institutional Offer bookbuild.
No general public offer of Shares will be made under the Offer.
The Offer is not underwritten and there will be an institutional bookbuild held on 21 November 2024 to determine final allocations of the Offer shares to raise the amount sought to be raised under the Offer.
Cuscal overview
Cuscal is an authorised deposit-taking institution (ADI), with the licences, connectivity and processing capability to support all payment types and regulated data services. The combination of these capabilities and credentials within a single organisation in Australia is limited to the four major Australian banks (Major Banks) and Cuscal.
Cuscal provides payment services to banks, financial technology companies and corporates, enabling its clients to provide payment services to their customers. As a B2B provider, Cuscal operates in the infrastructure layer of the Australian payments market, connecting clients to local payments infrastructure.
Cuscal’s business model includes the provision of three core payments capabilities including issuing, acquiring and payments. Cuscal is building capabilities in the emerging regulated data services industry and, while in its early days, it is anticipated that this may provide additional opportunities for growth as regulated data services become increasingly integrated with payments in Australia.
Operating since 1966 through its earliest predecessor, the Australian Federation of Credit Union Leagues, Cuscal has evolved from an aggregator of services for mutual ADIs to a trusted payments solutions provider.
Cuscal Chairman, Elizabeth Proust AO, said:
“Cuscal plays a crucial role in supporting connectivity to the Australian payments infrastructure for a diverse range of clients. Our unique position as an authorised deposit-taking institution, combined with our comprehensive ‘End-to-End’ capabilities in payments and regulated data services, sets us apart in the industry in Australia.
“Cuscal has been at the forefront of innovation in the payments sector, having been the first Australian company to launch connectivity solutions for Apple Pay, Google Pay and Samsung Pay. As one of 13 original shareholders of the New Payments Platform (NPP), Cuscal played a key role in the design and initial delivery of the NPP across Australia.
“Underpinning Cuscal’s strong performance is our experienced Management team, led by our Managing Director, Craig Kennedy, and a dedicated team who bring deep sector expertise across the payments landscape.
“Lodging our Prospectus ahead of an ASX listing represents a significant milestone in Cuscal’s journey, with the fundamental purpose of becoming a listed company being to give Cuscal deeper access to funding sources and provide the Management team greater flexibility to execute growth initiatives.
“On behalf of the Board, I am excited to present both current and prospective shareholders with the opportunity to invest in and contribute to Cuscal’s ongoing growth and I encourage all potential investors to read the Prospectus carefully and in its entirety.”
Cuscal Managing Director, Craig Kennedy, said:
“Cuscal powers seamless and secure connections for our clients and their customers across a range of payment types and regulated data services. We are a fully licenced authorised deposit-taking institution with a track record of successful investment that is well positioned to grow.
“Outside of the Major Banks, we are the largest centralised provider of payments infrastructure in the Australian payments industry.
“We have three key strengths – strong competitive advantages, a predictable financial model, and attractive growth fundamentals – that position Cuscal as a differentiated B2B connector to the Australian payments landscape.
“We have a long-contracted and diversified client base and we will continue to look at opportunities to expand the breadth of our payment services capabilities.
“Becoming a publicly listed company will enhance our ability to serve our clients and stakeholders. We are excited by the opportunity to welcome new investors to join us in the next chapter of the Cuscal growth story.”
Indicative IPO timetable
Prospectus Date
8 November 2024
Retail Offer opens
18 November 2024
Retail Offer closes
20 November 2024
Institutional Offer bookbuild
21 November 2024
Expected commencement of trading of Shares on ASX on a conditional and deferred settlement basis
25 November 2024
Settlement
26 November 2024
Issue and transfer of Shares (Completion)
27 November 2024
Expected commencement of trading of Shares on ASX on a normal settlement basis
27 November 2024
Expected dispatch of holding statements
28 November 2024
The dates above are indicative only and may change.
BofA Securities is acting as Sole Global Coordinator, Sole Bookrunner and Joint Lead Manager. Bell Potter Securities Limited, Ord Minnett Limited and MST Financial Services Pty Ltd are acting as Joint Lead Managers to the Offer. Gilbert + Tobin is acting as Australian legal adviser to Cuscal.
For media enquiries please contact: Peter Brookes +61 (0)407 911 389
– ENDS –
IMPORTANT NOTICES Capitalised terms not defined in this document have the meaning given in the Prospectus.
This document contains certain forward-looking statements and comments about future events. Forward-looking statements can generally be identified by the use of forward-looking words such as, ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘predict’, ‘plan’, ‘propose’, ‘will’, ‘believe’, ‘forecast’, ‘estimate’, ‘target’ and other similar expressions within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, both general and specific, and there is a risk that such predictions, forecasts, projections and other forward-looking statements will not be achieved. A number of important factors could cause the Company and the Group’s actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements, and many of these factors are beyond the Company and the Group’s control. Forward-looking statements are provided as a general guide only, and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainty and other factors, many of which are outside the control of the Company and the Group. As such, undue reliance should not be placed on any forward-looking statement.
Past performance is not necessarily a guide to future performance and no representation or warranty is made by any person as to the likelihood of achievement or reasonableness of any forward-looking statements, forecast financial information or other forecast. Nothing contained in this document nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of the Company and the Group.
This document is not, and does not constitute, an offer to sell or the solicitation, invitation, advertisement or recommendation to purchase any securities or other financial products in any jurisdiction and neither this document nor any of the information contained herein shall form the basis of any contract or commitment. In particular, this document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States.
The information in this document remains subject to change without notice. No responsibility or liability is assumed by the Company, its related bodies corporate or any of their respective officers, employees, advisers and agents for updating any information in this document or to inform any recipient of any new or more accurate information or any errors or mis-descriptions of which any member of that group may become aware.
Full details about the Offer are contained in the Prospectus dated 8 November 2024 issued by Cuscal Limited (ACN 087 822 455) and Cuscal SaleCo Limited (ACN 670 386 713).
The Prospectus is available in electronic form to Australian and New Zealand residents on the Company’s offer website, https://events.miraqle.com/cuscal-ipo. The Offer constituted by the Prospectus in electronic form is available only to Australian and New Zealand residents accessing the website within Australia or New Zealand and is not available to persons in any other jurisdictions, including the United States.
A hard copy of the Prospectus is available free of charge during the Offer period to any person in Australia by calling the Cuscal Offer Information Line on 1800 336 109 (toll free within Australia) or +61 1800 336 109 (outside Australia) between 8:30am and 5:30pm (Sydney time), Monday to Friday (excluding public holidays). Applications for Shares may only be made on the Application Form attached to, or accompanying, the Prospectus in its hard copy form, or in its soft copy form available online at https://events.miraqle.com/cuscal-ipo, together with an electronic copy of the Prospectus. By making an Application, you declare that you were given access to the Prospectus, together with an Application Form.
The Corporations Act prohibits any person from passing the Application Form on to another person unless it is attached to, or accompanied by, the Prospectus in its paper copy form or the complete and unaltered electronic version of the Prospectus.
Learning financial skills is fundamental to leading a fulfilling life. Yet at present both young people and their parents believe that financial institutions are falling short in meeting their information, service and education needs. In this video, we dive deeper into the key themes uncovered in our latest Youth Banking White Paper and share how financial institutions are well-positioned to develop innovative, educational, and accessible banking solutions that can strategically connect with the next generation of financial customers and seize opportunities in this dynamic market.
Inside this video:
Uncover the crucial stages of financial development for young Australians and the impact on your youth banking strategy — from the basics of money management to navigating digital payments and the influence of social media.
The three strategic decisions financial institutions must make to capture the youth banking market effectively.
Why a one-size-fits-all strategy fails for the 6-year-old to 22-year-old age group and the importance of adapting your products, messaging, and experience for each life stage.
The four main opportunity gaps between current banking offerings and the growing needs of parents and young people.
Understanding the ebb and flow of parent involvement along the youth banking journey and how to build this into your strategy and approach.
The importance of tone of voice and platform-appropriate experiences for digital-native youth.
The correlation between financial literacy and financial inclusion and how it affects customer lifetime value.
Featured Speakers:
Sarah Rowley, Senior Product Manager for Issuing, Cuscal,
Dawn Mischewski, Research and Customer Insights Specialist – Phase One Insights, and
Ryan Yuzon, Senior Director, Visa Consulting & Analytics, Visa Australia.
Watch this video now and learn how these insights can help you develop a program for the youth segment in line with your wider customer lifecycle strategy.
Important Information: The information in this web copy and video are current as at December 2024 and is subject to change. This information is provided for general information purposes only and not for the purpose of providing legal, financial or investment advice. The information contained in the web copy and video does not constitute an offer, a solicitation of an offer or to enter a legally binding contract. The web copy and video contain material provided by third parties. While such material is published with the necessary permission, Cuscal does not accept any responsibility for the accuracy or completeness of any such material. Although Cuscal has made every effort to ensure the information is free from error, Cuscal does not warrant the accuracy, adequacy or completeness of the information. Except where contrary to law, Cuscal intends by this notice to exclude liability for the information. This web copy and video are not to be distributed to any other party without Cuscal’s prior written consent. Cuscal Limited ABN 95 087 822 455.
With 26% of the global population under 15 years old and projected growth of 7% by 2030, according to the United Nations World Youth Report, 2020, the landscape of youth banking is rapidly evolving, presenting both challenges and unprecedented opportunities for financial institutions. Our latest white paper shares in-depth findings of the financial learning journey at each youth life stage and delves into the strategic imperatives of targeting this 5.5 million strong demographic—from understanding their digital-first expectations to nurturing lifelong customer relationships.
Inside, we explore crucial topics such as:
Evaluating the $825 billion total opportunity value of the youth segment and its strategic importance within your financial institution’s broader vision.
Quantifying the correlation between early financial education and sustained customer loyalty—explore strategies to capitalise on this proven link.
Understanding why conventional banking methods are falling short in meeting the precise financial literacy needs of today’s youth—and learning actionable solutions to address these gaps effectively.
Detailed insight into the youth financial learning journey and how to develop compelling youth banking propositions that drive both acquisition and retention.
Uncovering the five key elements of a robust youth strategy to harness competitive advantage.
How to navigate regulatory landscapes and forge strategic partnerships to bolster your youth banking initiatives, ensuring both compliance and market relevance. Ready to transform your approach to youth banking?
How can Cuscal help your organisation? With nearly 60 years of expertise, Cuscal can partner with you across the whole payment ecosystem. Harnessing our deep knowledge of the Australian financial market and robust regulatory experience, we can help your organisation bring to life the digital experiences required to attract and retain these customers.
If you would like to speak to us about your youth banking strategy, email us at getintouch@cuscal.com.au.
Important Information: Information in this web copy and White Paper are current as at December 2023 and is subject to change. This information is provided for general information purposes only and not for the purpose of providing legal, financial or investment advice. The information contained in the web copy and White Paper does not constitute an offer, a solicitation of an offer or to enter a legally binding contract. The web copy and White Paper contains material provided by third parties. While such material is published with the necessary permission, Cuscal does not accept any responsibility for the accuracy or completeness of any such material. Although Cuscal has made every effort to ensure the information is free from error, Cuscal does not warrant the accuracy, adequacy or completeness of the information. Except where contrary to law, Cuscal intends by this notice to exclude liability for the information. This web copy and White Paper is not to be distributed to any other party without Cuscal’s prior written consent. Cuscal Limited ABN 95 087 822 455.
Simon Baptist, Visa Principal Economist for Asia Pacific caught up with Bronwyn Yam, Cuscal Chief Product Officer in Sydney to discuss the global economic outlook and how it may impact the Australian economy.
They discuss:
the key factors that are driving the economy,
the themes for the year ahead,
shifts in trade in the Asia Pacific,
how the US election and tourism could impact Australia and
The past couple of years have meant significant growth for non-bank lenders and there are no signs of slowing down, says Bronwyn Yam, the chief product officer at Cuscal.
According to the RBA, the sector grew on average 15 per cent on a six-month annualised basis, more than twice the rate recorded by banks.
It is an exciting – and competitive – time. And it is in this context that the non-bank lender sector prepares to be the next one rolling out the Consumer Data Right (CDR) in Australia. While some organisations try to understand how to best navigate this complex initiative, a key aspect may get lost amid the regulatory language: CDR is way more than compliance costs.
For those organisations willing to make this part of their digital transformation, the initiative presents opportunities to stay competitive, improve efficiency, enhance customer experiences, and drive innovation in the financial services sector.
As a partner of many banking and non-banking organisations, we’ve seen firsthand how data can improve an organisation’s ability to draw strategic insights for its business plans. The good news is that some implementations can be API-driven on a subscription basis, enabling users to securely share their data and empowering companies to build improved financial applications.
Here are key takeaways on how a well-implemented CDR solution can boost businesses.
Improved customer experience: As an accredited organisation, non-bank lenders will have access to use consumer data to offer more tailored solutions. Companies that channel this supercharged data pool to drive innovation and product development will deliver improved customer experiences and personalised financial services – a potential make or break in a competitive environment. Easy wins include increasing conversion rates by fast-tracking your lending application process with a mobile-first experience, expedited approval times, quick account verification and pre-funds checks, and streamlined onboarding, easing the deposit of funds and progressing the lending cycle from origination to collections. And this is just the beginning of improved customer experience.
Increased visibility of client movement: Non-bank lenders, as mandated data holders, should want access to the metadata generated by their existing customers sharing their data with other organisations. This new dataset becomes a source of powerful insights. At Cuscal, we call them a moat for our clients, protecting their businesses’ revenue and profit. The premise is that if companies use and analyse the data properly, they will notice trends or clients looking to move, allowing them to counteract with a better experience.
More accurate risk management: While accessing data is a crucial step in developing a financial application, extracting insights from it truly unlocks its value. Adding comprehensive data overlay services helps companies harness the power of data to make more informed lending decisions, improve risk control, proactively manage hardship, and reduce default rates. Benefits include a deep understanding of spending behaviour with access to enriched transaction details, empowering non-bank lenders to improve their risk assessment capabilities.
Increased cyber security: Maintaining robust cyber security practices helps build trust and confidence with your customers and assures them that their data is handled securely and responsibly. CDR also changes the game for consumers and businesses regarding cyber security. It is a safer solution than outdated methods, such as screen scraping, which require customers to share their login details with third parties (e.g. lenders and brokers) for the various compulsory checks for responsible lending obligations. Banning these insecure practices, such as sharing PDFs and scans of transaction statements, minimises the risks exposed by storing them.
Compliance with standards and regulations is a key requirement for organisations participating in the CDR framework. That means non-bank lenders will automatically adhere to industry standards and guidelines to ensure data security, limiting exposure to malicious activity.
Data protection measures include encryption, access controls, and secure data storage practices to safeguard sensitive information. The CDR framework also imposes ongoing monitoring and auditing of databases, securing consumer data by increasing the chances of discovering risks and losing integrity in datasets.
In summary, CDR is more than a compliance cost to non-bank lenders. It is the next step to increase business competitiveness and protect businesses and consumers in Australia. CDR is about giving consumers peace of mind when they transfer personal data online and giving them control over their vulnerable data.
As CDR continues to roll out, we anticipate a stronger, more protected ecosystem in which organisations, CDR solution partners, and customers are building collectively towards a safer digital economy.
There is much to learn from other industries in preparation for the legislation. However, the reality is that non-bank lenders should consider adopting CDR solutions regardless of the government timelines. CDR will be a reality and the sooner they can be ready and start benefiting from the advantages of data and insights to protect and boost their business, the greater value they will get for their investment.
Partnering with a wide variety of organisations, ranging from small mutuals to large consumer banks to new age fintechs amongst others, Cuscal enables organisations to implement the best payment solutions to suit their needs. Now with the emergence of PayTo and Open Banking, the payments landscape of Australia is about to change, and Cuscal is leading the way.
Cuscal has had and the exciting innovations we are looking forward to in the future. We thank every Client and partner who has been part of our journey.
Watch the video which encapsulates the remarkable journey of Cuscal up until October 2022.
We are pleased to announce that Queensland Country Bank has selected Cuscal as their single payment’s services provider.
Queensland Country Bank needed to find a partner who could help them aggregate all their payment service requirements, including Cards, Switching and Payments.
Their key objectives were to simplify their contractual arrangements, streamline operational processing and deliver products and services in a consistent manner across their entire customer base.
With an eye on the future, it was also important to Queensland Country Bank to find a partner who could understand their strategy, and who could demonstrate a clearly articulated roadmap to support it.
Cuscal prides itself on our speed to market and proven track record in enabling first to market solutions (e.g The Pays and NPP). We are also deeply committed to continuing investment in innovation to enable clients in being early adopters of new capabilities such as PayTo services. We are excited to be partnering with Queensland Country Bank to support them in bringing these services to their customers and look forward to a successful partnership – Bianca Bates
The teams from Cuscal and Queensland Country Bank have already started working closely together on the transition plan, with a view to have this work completed in 2022.
We are looking forward to a successful partnership with the team at Queensland Country Bank.
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