Elula's Sweeper wins work as regulators tighten scrutiny

Elula says its AI data monitoring product, Sweeper, is winning new and expanded client work as regulators increase scrutiny of operational breaches.

The Sydney-based software group says Sweeper scans large data sets for anomalies that can lead to regulatory and operational failures. It is designed to identify problems including overcharging, undercharging, duplicate services and compliance breaches.

The launch comes as Australian companies face growing scrutiny over data handling, customer treatment and control failures. In a recent review, the Australian Securities & Investments Commission examined 204,000 bank loans across eight banks and found widespread errors in how some lenders calculated interest for borrowers with offset accounts.

Some customers paid thousands of dollars in extra interest and had their loan terms extended because of administrative errors. The regulator also criticised banks for failing to recognise the mistakes and for not adequately investigating customer complaints.

Elula is positioning Sweeper as a tool for earlier detection of these issues. Many internal remediation programs remain manual and begin only after customers complain, while data often sits in separate, poorly integrated systems.

"Many organisations, particularly those that are consumer facing, risk multi-million-dollar fines and brand damage due to poor data management, and controls and compliance breaches," said Josh Shipman, founder and chief executive officer of Elula.

Some companies have struggled to fix underlying data and control problems through large technology overhauls, Shipman said.

"Current remediation efforts by many corporates are reactive to customer complaints and slow due to manual investigations," he said.

"It's a recurring theme in corporate Australia that efforts to leverage technology often entail complex, lengthy and extremely expensive digital transformation projects that destroy investor and shareholder capital and ultimately fail to fix internal problems in a timely manner.

"Sweeper prevents regulatory and compliance breaches, reduces operational revenue loss, and safeguards corporate brand and reputation. Like all of Elula's products, it's fast, secure and scalable," he said.

Broader reach

Elula says its products have been in the market since 2017 and are already used by more than 20 banks, non-bank lenders, superannuation funds and insurers. With Sweeper, it is also targeting sectors beyond finance, including mining and energy, telecommunications, and government agencies.

The broader pitch reflects a problem that extends beyond financial services. Any large organisation with fragmented data, legacy systems and high customer volumes can face losses, remediation costs and regulatory pressure when billing, service records or compliance checks fail.

Existing suite

Alongside Sweeper, Elula sells three other AI products to financial services customers. Sticky is aimed at predicting which customers are most likely to leave within the next three months, including superannuation members and mortgage borrowers considering refinancing with another provider.

Nudge is designed to identify people most likely to restart superannuation contributions or apply for new lending within six months, with a focus on member reactivation, account consolidation and win-back campaigns. Elastic is built for lenders and focuses on pricing decisions, helping them weigh portfolio growth against margin in competitive repricing markets.

Those products suggest the company's main focus remains financial services, even as it pursues opportunities in other regulated industries. The addition of a monitoring tool such as Sweeper also broadens its offering from customer acquisition, retention and pricing into operational controls and remediation.

Regulatory backdrop

The tougher compliance environment has created demand for systems that can identify errors before they become customer scandals or formal enforcement matters. That is particularly relevant in sectors where mistakes can affect large numbers of consumers and generate significant compensation costs.

For lenders, insurers and superannuation funds, the challenge is not only to identify errors but to do so quickly enough to avoid prolonged customer harm. Recent regulatory actions in Australia have highlighted how small administrative faults can persist for long periods when firms lack clear oversight of data across products and systems.

"Sweeper proactively identifies anomalies to enable quicker remediation, helping companies avoid regulatory action and enabling a better customer experience," Shipman said.