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AU Financial Review
4 days ago
- Business
- AU Financial Review
Smarter, relevant search is reshaping the future of generative AI
'But at the same time, I'm already seeing countless examples of how Australian businesses are putting the technology to work in meaningful ways.' Relevance is the missing piece Among the early adopters is one of the nation's largest banks, Macquarie, where relevancy breakthroughs are helping deliver smarter digital services. Macquarie Bank's chief digital officer Luis Uguina says search has become a strategic lever. 'Leveraging GenAI's ability to provide contextually relevant and highly personalised search results has significantly reduced the time it takes to retrieve and extract critical information, both for our customers and internal teams,' says Uguina. That shift is freeing employees from repetitive tasks so they can focus on innovating and continuing to improve customer experiences. 'Customers now receive answers that are not only accurate but also aligned with their specific needs and preferences,' Uguina says. 'That's resulted in increased engagement and satisfaction, with noticeable improvements in metrics like customer recommendation scores.' For GenAI to deliver this kind of value, speed and scale are not enough. Relevance - in context, in real time - is what makes the difference. 'There will, of course, be challenges along the way,' says Pell. 'While we're seeing lots of successful GenAI use cases, an organisation's approach to data management can pose significant challenges to the success of its projects.' And the shift is happening across sectors. In mining, BHP is using GenAI to analyse complex, interdependent operational variables. In retail, Coles is extracting insights from thousands of customer survey comments. In finance, firms like Macquarie are anticipating user intent with precision. Underpinning these advances are techniques like retrieval-augmented generation (RAG), which enhance LLM responses with proprietary data. By feeding AI systems with business-specific context, RAG helps organisations move beyond generic outputs. It allows them to use their own internal knowledge base to improve accuracy and usefulness. 'All organisations have a responsibility to mitigate security risks, eliminate blind spots in their security posture and identify and respond to threats quickly,' Pell says. For Macquarie, proprietary data is a cornerstone of their AI strategy. Ashwin Sinha, the bank's chief data and AI officer, says it gives the organisation a competitive edge. 'Proprietary data plays a crucial role in enhancing search outcomes by providing unique insights,' Sinha says. 'It allows us to deliver more accurate, relevant and personalised results, tailored to the specific needs of our customers.' Macquarie's internal datasets are used to model customer intent and streamline service workflows. 'It means we can anticipate user needs more effectively and provide results that are not only accurate but also contextually meaningful,' Uguina says. But it's not just about performance - trust and governance remain key. 'We ensure that the use of proprietary data is handled responsibly, adhering to strict privacy and ethical guidelines to maintain trust with our customers,' Sinha says. Solving for complexity and compliance Getting to that point has meant solving for both complexity and compliance. 'One of the primary challenges we encountered was balancing the complexity of advanced search algorithms with the need for speed, accuracy and efficiency,' Sinha says. Optimising infrastructure, adopting distributed computing, and building in privacy protections such as encryption and differential privacy were part of the solution. 'We implemented rigorous testing and validation processes, as well as ongoing audits of our algorithms,' Sinha says. Transparency and user feedback loops were also built in to detect and address any unintended outcomes quickly. The payoff has been measurable. Uguina says GenAI-based search techniques have improved the customer experience and internal operations. 'One of the most notable outcomes has been a substantial improvement in our digital experience, with user satisfaction increasing and our online help resources more useful for our customers,' says Uguina. At the enterprise level, search is also streamlining knowledge retrieval. 'It has enhanced enterprise knowledge retrieval by surfacing actionable insights from vast datasets,' Sinha says. 'That's improved decision-making and increased operational efficiencies.' Elastic's Pell says this type of capability is now essential. 'Most businesses have vast amounts of structured and unstructured data, and the key to unlocking tremendous value from both is to be able to find, analyse, and use data from any source in real time,' Pell says. This is particularly evident in customer-facing applications. While many companies began with GenAI-powered chatbots, more advanced use cases are now emerging. In retail, this includes intelligent product recommendations and real-time sentiment analysis. In financial services and telecoms, it's about speeding up transactions and supporting staff with personalised data. 'There is also a role for generative AI in transactions where human-to-human interaction remains vital, by enabling call centre staff and bank tellers to access relevant, up-to-date data fast and efficiently, giving them the real-time insights they need to resolve issues faster and keep wait times to a minimum,' Pell says. 'It can also provide these employees with personalised recommendations to pass on to their customers.' Security is another area seeing rapid change. With cyber threats on the rise, organisations are starting to use GenAI and search to boost their defensive posture. According to the Australian Signals Directorate, financial losses from cybercrime continue to grow, with average costs per incident reaching $30,700 last financial year. Security teams are using AI-enhanced search to surface relevant signals faster and receive guided recommendations for action. 'Having a search platform helps modernise security operations by providing greater context that includes both public and private data related to security issues,' Pell says. Despite the promise, businesses remain mindful of the risks. Concerns around bias, data sovereignty and regulatory uncertainty are front of mind, especially in sectors like finance, health and government. Pell notes that while GenAI offers clear benefits, many organisations remain unsure how to proceed because 'the absence of specific regulations in this country creates uncertainty regarding compliance', particularly in sectors such as banking, healthcare and the public sector, which must still align new models with APRA's stringent data protection guardrails. Sinha agrees that governance is crucial. 'Advanced search techniques often rely on very large datasets, which can sometimes introduce biases or inaccuracies,' he says. For that reason, Macquarie invested early in frameworks to monitor fairness and build privacy-preserving systems. Even with these guardrails, the momentum is clear. Elastic research shows 88 per cent of Australian IT decision-makers expect to increase their AI investment. The Tech Council of Australia estimates GenAI could add $115 billion to the economy annually by 2030. The next frontier - conversational AI Looking ahead, Macquarie's Uguina sees conversational, intent-aware search as the next frontier. 'Generative AI is making it possible for users to interact with search systems in a more natural, dialogue-like manner,' he says. 'That evolution is transforming search into a more dynamic and personalised experience.' Sinha says the implications for decision-making are profound. 'AI allows us to process vast amounts of data - from transaction histories to market trends - and surface insights that were previously inaccessible,' he says. 'It also enables better risk management by detecting anomalies or threats in real time.' Ultimately, Uguina says, it's about shifting from reactive to proactive. 'With advancements in machine learning and AI, banks will be able to anticipate the needs of their customers before they arise,' he says. 'This shift will make banking not just a transactional experience but a truly supportive one.' As generative AI continues to evolve, the real differentiator will be its ability to deliver relevant, timely, context-aware outcomes. Organisations that get search right won't just improve productivity - they'll unlock entirely new ways to serve, protect and engage their customers.
News.com.au
12-06-2025
- Business
- News.com.au
Australian mortgage holders tipped to save in just three days after RBA cut
Australia's fifth biggest bank, Macquarie Bank, will pass on the May interest rate to its customers a week earlier than its competitors, citing cost of living pressures. Macquarie has become the first major lender to cut variable interest rates just days after the Reserve Bank of Australia officially announced a rate reduction. Variable mortgage rate customers will get the full 25 basis point rate cut passed on by the 23rd of May. Macquarie Bank head of personal banking Ben Perham said it was important to pass on rate relief quickly during the current cost of living climate. 'We know homeowners across Australia are watching rate movements closely and that every dollar counts,' Mr Perham said. 'That's why we're reducing the time it takes for this rate cut to be effective from 10 days to three so our customers can feel the benefit of lower rates, and more money in their pockets at the end of each month, sooner.' From May 23 home loan rates will start at 5.64 per cent and Macquarie will automatically drop if paying the minimum and also have a direct debit set up. The changes come just days after the Reserve Bank of Australia slashed the official cash rate from 4.10 to 3.85 per cent in a widely predicted move. Meeting for the second time under its new dual-board structure, the RBA cut the national cash rate by 25 basis points, but surprised everyone by saying they open to a super-sized 50 basis point rate cut. 'There was an argument and we did debate it (a 50 basis point cut) but it wasn't the strongest argument in the room,' RBA governor Michele Bullock said. She stressed 'inflation hurts everyone', particularly those on lower incomes and renters. Responding to a question from NewsWire on whether households could expect further relief, she acknowledged Australians had gone through a 'really rough few years', typied by sharp rises in everyday prices. 'I would say that bringing inflation down is the best thing we can do to help them, while keeping employment strong,' she said. 'At the moment we are on track to deliver that. I know you're doing it tough, but conditions are improving.' All four of the major banks have announced they will also move on interest rates but it will take a week longer. NAB confirmed it would decrease its standard variable home loan interest rate by 0.25 per cent, effective from Friday, May 30, with the 10-day delay in line with previous changes to interest rates in the wake of a cash rate change. ANZ was quick to follow, also dropping its variable rate by 0.25 per cent, effective on May 30. The Commonwealth Bank of Australia has moved in line with the other majors and will also drop variable interest rates on home loans by 0.25 per cent. Westpac told customers it too would pass on the rate cut in full – to mortgage holders and savers, albeit a touch slower. It was the only one of the major banks to make an announcement on savings rates. From June 3, the bank will decrease its variable interest rates by 0.25 per cent for new and existing customers. Speaking about the change, Westpac acting chief executive consumer, Carolyn McCann said it will give welcome relief to mortgage holders facing cost of living pressures. 'Our customers have shown remarkable resilience when it comes to managing their finances through a challenging economic period,' she said. 'However, we recognise things are still tough and every dollar counts in the family budget.' From May 30, variable rates on Westpac Life accounts will decrease by 0.25 per cent, while new customers applying online for a Westpac eSaver account will also cop a 0.25 per cent interest rate cut.
Perth Now
02-06-2025
- Business
- Perth Now
‘Days limited': Bank's huge security call
The fifth largest lender in Australia has highlighted the security risk of two-factor authentication models through texts, calling the technology outdated. According to Macquarie, traditional SMS two-factor authentication (2FA) – which is widely used in Australian banking – relies on insecure technology and often provides limited information. Macquarie Bank head of deposits Olivia McArdle said the lack of detail in these messages means recipients may not know what they are approving and can't distinguish whether the action was initiated by the customer or a scammer. Macquarie Bank says two-factor authentication (2FA) – which is widely used in Australian banking – relies on insecure technology and often provides limited information. NewsWire / Morgan Sette Credit: News Corp Australia 'We think the days of Australian banks relying solely on SMS to verify customer account activity are numbered,' she said. The warning comes a month after the major super funds announced cyber breaches, but have yet to make models such as the 2FA standard. In the March, hackers were able to gain access to five of the largest super funds in Australia through 'credential stuffing' – which involves stolen usernames and passwords which are sold on the dark web. The attackers exploit the fact that people often repeatedly use the same passwords for different accounts, with security measures such as multi-factor authentication (MFA) helping to slow down these types of cyber attacks. Australians were reported ripped off through their superannuation. NewsWire / Nicholas Eagar Credit: NewsWire Super Consumer Australia chief executive Xavier O'Halloran said the breach follows consistent warnings from regulators and consumer advocates around superannuation funds lagging behind on cyber-resilience and fraud protection. 'Australians are legally required to put their money into super. Today's news is chilling when we know super funds aren't doing enough to protect Australians' retirement savings,' Mr O'Halloran said. 'When something goes wrong, too many people are being left without support, answers, or access to their own money.' Macquarie Bank said Australians are demanding more security than 2FA via a text message. 'The vulnerabilities are clear and customers, who are seeing the risks themselves, are voting with their feet,' Ms McArdle said. There have been consistent warnings from regulators and consumer advocates around superannuation funds lagging behind on cyber-resilience and fraud protection. NewsWire/ Gaye Gerard Credit: News Corp Australia Five tips to watch when using SMS for 2FA Macquarie say while there needs to be more done, there are a few things Australians can watch out for to stay safe. 1. Check the detail: Due to the limitations of SMS 2FA, Aussies might not know exactly what they are approving and should not take action unless you have full confidence the 2. Impersonation scams: Scammers may impersonate your bank, urgently requesting authorisation codes via SMS to stop a scam but will actually use these codes to compromise a device. 3. Spoofing: Scammers may trick you into sharing personal or financial details via SMS. These fraudulent messages typically contain links to fake websites that prompt victims to share their sensitive banking data, with Australians urged not to click on links in a text. 4. Pop-up SMS: Scammers can deliver a pop-up or flash SMS to your phone. These appear directly on your lock screen and are not saved to your inbox to prevent them from being reported or traced. 5. Phone porting: Although this scam has reduced in prevalence, scammers can in some instances illegally transfer your phone number to another telecommunications provider without your consent. This enables them to receive all your messages and use this access to compromise your account.
West Australian
02-06-2025
- Business
- West Australian
‘Days are limited': Macquarie Bank makes huge call on two-factor authentication, warns system is not secure
The fifth largest lender in Australia has highlighted the security risk of two-factor authentication models through texts, calling the technology outdated. According to Macquarie, traditional SMS two-factor authentication (2FA) – which is widely used in Australian banking – relies on insecure technology and often provides limited information. Macquarie Bank head of deposits Olivia McArdle said the lack of detail in these messages means recipients may not know what they are approving and can't distinguish whether the action was initiated by the customer or a scammer. 'We think the days of Australian banks relying solely on SMS to verify customer account activity are numbered,' she said. The warning comes a month after the major super funds announced cyber breaches, but have yet to make models such as the 2FA standard. In the March, hackers were able to gain access to five of the largest super funds in Australia through 'credential stuffing' – which involves stolen usernames and passwords which are sold on the dark web. The attackers exploit the fact that people often repeatedly use the same passwords for different accounts, with security measures such as multi-factor authentication (MFA) helping to slow down these types of cyber attacks. Super Consumer Australia chief executive Xavier O'Halloran said the breach follows consistent warnings from regulators and consumer advocates around superannuation funds lagging behind on cyber-resilience and fraud protection. 'Australians are legally required to put their money into super. Today's news is chilling when we know super funds aren't doing enough to protect Australians' retirement savings,' Mr O'Halloran said. 'When something goes wrong, too many people are being left without support, answers, or access to their own money.' Macquarie Bank said Australians are demanding more security than 2FA via a text message. 'The vulnerabilities are clear and customers, who are seeing the risks themselves, are voting with their feet,' Ms McArdle said. Five tips to watch when using SMS for 2FA Macquarie say while there needs to be more done, there are a few things Australians can watch out for to stay safe. 1. Check the detail: Due to the limitations of SMS 2FA, Aussies might not know exactly what they are approving and should not take action unless you have full confidence the 2. Impersonation scams: Scammers may impersonate your bank, urgently requesting authorisation codes via SMS to stop a scam but will actually use these codes to compromise a device. 3. Spoofing: Scammers may trick you into sharing personal or financial details via SMS. These fraudulent messages typically contain links to fake websites that prompt victims to share their sensitive banking data, with Australians urged not to click on links in a text. 4. Pop-up SMS: Scammers can deliver a pop-up or flash SMS to your phone. These appear directly on your lock screen and are not saved to your inbox to prevent them from being reported or traced. 5. Phone porting: Although this scam has reduced in prevalence, scammers can in some instances illegally transfer your phone number to another telecommunications provider without your consent. This enables them to receive all your messages and use this access to compromise your account.
News.com.au
02-06-2025
- Business
- News.com.au
‘Days are limited': Macquarie Bank makes huge call on two-factor authentication, warns system is not secure
The fifth largest lender in Australia has highlighted the security risk of two-factor authentication models through texts, calling the technology outdated. According to Macquarie, traditional SMS two-factor authentication (2FA) – which is widely used in Australian banking – relies on insecure technology and often provides limited information. Macquarie Bank head of deposits Olivia McArdle said the lack of detail in these messages means recipients may not know what they are approving and can't distinguish whether the action was initiated by the customer or a scammer. 'We think the days of Australian banks relying solely on SMS to verify customer account activity are numbered,' she said. The warning comes a month after the major super funds announced cyber breaches, but have yet to make models such as the 2FA standard. In the March, hackers were able to gain access to five of the largest super funds in Australia through 'credential stuffing' – which involves stolen usernames and passwords which are sold on the dark web. The attackers exploit the fact that people often repeatedly use the same passwords for different accounts, with security measures such as multi-factor authentication (MFA) helping to slow down these types of cyber attacks. Super Consumer Australia chief executive Xavier O'Halloran said the breach follows consistent warnings from regulators and consumer advocates around superannuation funds lagging behind on cyber-resilience and fraud protection. 'Australians are legally required to put their money into super. Today's news is chilling when we know super funds aren't doing enough to protect Australians' retirement savings,' Mr O'Halloran said. 'When something goes wrong, too many people are being left without support, answers, or access to their own money.' Macquarie Bank said Australians are demanding more security than 2FA via a text message. 'The vulnerabilities are clear and customers, who are seeing the risks themselves, are voting with their feet,' Ms McArdle said. Five tips to watch when using SMS for 2FA Macquarie say while there needs to be more done, there are a few things Australians can watch out for to stay safe. 1. Check the detail: Due to the limitations of SMS 2FA, Aussies might not know exactly what they are approving and should not take action unless you have full confidence the 2. Impersonation scams: Scammers may impersonate your bank, urgently requesting authorisation codes via SMS to stop a scam but will actually use these codes to compromise a device. 3. Spoofing: Scammers may trick you into sharing personal or financial details via SMS. These fraudulent messages typically contain links to fake websites that prompt victims to share their sensitive banking data, with Australians urged not to click on links in a text. 4. Pop-up SMS: Scammers can deliver a pop-up or flash SMS to your phone. These appear directly on your lock screen and are not saved to your inbox to prevent them from being reported or traced. 5. Phone porting: Although this scam has reduced in prevalence, scammers can in some instances illegally transfer your phone number to another telecommunications provider without your consent. This enables them to receive all your messages and use this access to compromise your account.
