In commenting on the investment, Cuscal managing director Craig Kennedy said: “The partnership with Moroku is a good fit for Cuscal. Their expertise in gamification and app development will help broaden our own capabilities and allow us to enhance our digital and mobile offering, which is an increasingly important part of our clients’ product suite.”
In the agreed terms, Cuscal will take a circa 11 per cent stake in Moroku and a seat on its board. Cuscal’s investment is part of a broader capital raising by Moroku.
Moroku is a fintech startup that is also part of the Stone and Chalk stable.The company was founded in 2012 by Colin Weir and Dave Durbin. The vision of Moroku is in creating immersive digital experiences to help banks connect better with customers.
They already developed two innovative products:
• Game System - a platform for next generation financial services applications that employs motivational theory and gamification to build financial literacy
• Marrakash - a cloud-based POS and business platform that supports multiple payment instruments and can be white-labelled by financial institutions
Does this make sense?
In my view the investment by Cuscal does make good strategic sense.Cuscal, which has been a traditional payments platform, has a need to diversify and remain relevant.
Let’s remember that Cuscal provides payment solutions including card and acquiring products, mobile payments, fraud prevention, EFT switching and direct entry.
While none of these services are going away and subject to innovation opportunity from the NPP payments platform, in the main these are not bleeding edge strategic platforms
For Moroku they will be using the capital injection to fund further business expansion (Moroku currently has clients in six countries) and will also draw on Cuscal’s financial and payments expertise, and deep integration within the Australian banking industry, to help with this expansion.
Moroku CEO, Colin Weir said: “There has been a significant increase in banks and insurance companies showing interest in partnering with smaller technology partners across the Asia Pacific region in the last six months.Read more: Government launches fintech advisory group
“The strategic relationship we are building with Cuscal brings us great distribution and experience at an industry level, enabling Moroku to play to its strengths around innovation, designing and deploying customer centric, digital, financial applications.”
Moroku CEO Colin Weir
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In my view we will see more of these investments by financial services companies and services companies who support them.Taking on new ‘Lego’ bricks enables opportunities that can be exploited.
Such Lego bricks are also attractive for international venture capital firms and I expect that investments from Asia in particular China will start to become more commonplace.
It is not a game… but there will be winners and losers.