Elula is an Australian owned, Artificial Intelligence software company that has accelerated the adoption of AI technology in banking to achieve impressive long-term financial outcomes for clients.
Founded in 2017 by Josh Shipman and Sarah Russell, Elula was one of the first movers to introduce AI technology in banking. Elula has transformed the sector with a range of AI software products that tackle some of the most pressing issues in banking and provide lenders with a competitive edge.
Co-CEO Josh Shipman said Elula has developed AI software that not only attracts and retains customers but also achieves growth targets. “At Elula we focus on unlocking and delivering significant, tangible value for banks – this is achieved through the use of Elula’s suite of AI technology,” Shipman said.
“Our AI software provides a smarter and more sophisticated way to attract, grow and importantly keep customers engaged and retained. We also have a strong focus on delivering a better customer experience, which in turn, has a positive impact on the bottom line,” he said.
Elula’s flagship products, Sticky and Nudge, are already used widely across the financial services sector. These products specialise in customer retention and customer acquisition, helping to reduce customer run-off and drive growth across the home loan portfolio.
Sticky specifically addresses the widespread problem of refinancing, by helping banks identify which customers are most at risk of switching to a different loan provider.
“The power of our proprietary software allows smaller lenders to compete more effectively by ultimately enabling front line banking staff to have better and more meaningful conversations with customers,” Shipman said.
Elula’s software analyses more than 20,000 data features, to help deliver improved customer experiences. The software also incorporates and analyses market data, analysis of market competition and pricing, and the status of the national housing market.
“For some lenders, customer refinancing can be as low as 5% and almost 25% for others,” he said.
“For lenders experiencing these high levels of refinancing, Sticky can be critical to retaining these valuable customers. We have a proven track record of delivering significant uplift for banks. The stats speak for themselves – Sticky delivers outstanding results by reducing customer churn by up to 60% in the customers that are contacted,” he said.
Nudge delivers new lending opportunities helping banks quickly grow their loan portfolio and deliver on their growth strategy. Nudge predicts which customers are most likely to apply for new lending in the next six months and provides the bank the opportunity to proactively engage with their customers and deliver a better service and experience.
“Nudge helps banks get on the front foot by using advanced AI software to be more proactive and not sit back and wait for new lending opportunities. For some of our clients, 15% of contacted customers submitted a new loan application, which is an outstanding result,” Shipman said.
Elula’s software solutions are a direct response to unique challenges faced by banks – challenges both Shipman and Russell have a deep understanding because they’ve both worked in senior roles at major Australian and international financial services companies.
“We have firsthand knowledge of the barriers that are hard to overcome in banking. We have seen so many failed technology projects that blow out budgets and underdeliver on promises. We knew we could do something better,” Shipman said.
“Our products deliver more value in shorter timeframes, which enables banks to hit targets quickly. That’s the clear benefit of outsourcing AI software, rather than building and maintaining models in-house,” he said.
“Leaving the development of AI products to the experts also overcomes capacity hurdles and budget constraints – it’s much more cost effective for banks to subscribe to our products rather than spending huge sums and resources creating their own,” he said.
“Elula’s products are designed to deliver immediate business value and return on investment for financial institutions,” he said.
Shipman said lenders of all sizes have partnered with Elula to level the playing field.
“Lending in Australia is largely controlled by the bigger banks. Lenders outside this larger group need to be nimble and more customer focussed to compete effectively. This is exactly why we developed our latest product Elastic,” Shipman said.
“Pricing in home loans has been highly competitive, to the point where a number of banks have been writing loans below the cost of capital,” he said.
“Elastic uses AI and machine learning to uncover the pricing sweet spot that suits the position a lender wants to take in a competitive repricing market. It takes the guesswork out of pricing,” he said.
“Elastic is a really exciting addition to the family of AI products and it’s already delivering a wide range of benefits for our clients,” he said.
The Sydney-based and Australian-owned business employs a team of 30 experts and is evaluating expanding into new territories.