Klarna
DBS
CBA
Klarna
Sweden’s Klarna uses AI to offer personalised shopping recommendations
Klarna is a Sweden-based bank that uses artificial intelligence (AI) to deliver personalised recommendations to shoppers of relevant brands (such as Nike, Samsung and UNIQLO).
Klarna seeks to create the future of shopping, and in doing so increase customer loyalty. Its business model is to collect a commission from the sale of merchandise based on a recommendation and to generate revenue through buy now pay later (BNPL) and payments.
Klarna has more than 150 million active customers in multiple countries. This gives it the scale to diversify its revenue by selling other banking services to suppliers and to customers, using the rich insights these transactions generate on their platform.
Source: Klarna. First Quarter Results 2023
DBS
CBA
Singapore’s DBS offers a marketplace ecosystem
Singapore’s DBS has launched several platforms to solve myriad needs of customers. It is an ecosystem for needs such as travel (flights and hotel booking), property (rentals and purchase), home and living (electricity plans, mobile connections and recharge, furniture, broadband), cars (selling, leasing, accessories, sharing), health and education.
The business model has led to the bank’s strong asset growth in an inflationary market. Its cost of income ratio is 41 per cent (with a target of less than 40 per cent this year) and its return on equity is greater than 17 per cent. Few banks have such outstanding financials.
Source: DBS. Quarterly Financials
Australia’s CBA supports customers with product comparisons
The Commonwealth Bank of Australia (CBA) has invested in platforms and created an ecosystem for its customers.
Little Birdie is a platform offering customers comparisons on 70 million products. It helps them to find the best prices for products and then to make the purchase. It is integrated into the CBA mobile app and is accessible to 6.5 million customers.
Amber Energy is a platform that lets customers track real-time wholesale electricity rates. The platform helps them to save on energy bills by shifting usage to cheaper, greener periods and reducing usage during more expensive times.
Additionally, CBA has invested in Klarna.
Sources: Commonwealth Bank, Australian Financial Review