The Commercial Bank of Australia has bought Whitecoat, Australia's largest digital healthcare services directory, to expand its presence in the healthcare sector.

WHY IT MATTERS

Whitecoat connects patients with more than 300,000 health service providers. They can also make payments and claims on the platform.

The acquisition supports the company's focus on healthcare as a "growth sector and a strategic priority to provide the best digital services and experiences to its customers," according to Mike Vacy-Lyle, CBA Group executive for business banking.

In addition, the commercial bank will integrate the digital payments and claims solution into practice management platforms for healthcare practitioners. This in turn will increase efficiency through streamlined back-office administration, practice management software integrations, payment reconciliations, real-time reporting, and the ability to process various claims.

THE LARGER TREND

The health payments market in Australia was estimated to be around A$180 billion. "Australia is fortunate to have one of the world’s best healthcare systems and we want to ensure it is supported by the best payment systems," said Vacy-Lyle.

Banks have been looking to gain a foothold in the healthcare space. Bank of America just acquired health payments firm Axia Technologies in April. OCBC Bank in Singapore also launched a telehealth services app last year.

ON THE RECORD

"By integrating Whitecoat into CBA, we are seeking to provide the best integrated digital solution in the market. It will see us differentiate our customer proposition in the healthcare sector and is well aligned [with] our aspiration to grow in business banking," said Vacy-Lyle.