BaaS in Europe is getting a boost as three industry players come together to accelerate its deployment.
Temenos, the banking software company, Vodeno, a fully cloud-native BaaS provider and Aion Bank, a European licensed digital bank and credit institution, have just announced a strategic collaboration.
The first banking services to be launched combine The Temenos Banking Cloud with Vodeno’s card management and payment processing services. This will enable banks and businesses across industries to broaden their portfolio of products offered to their customers by automating and embedding new payments and card services within their customer journey.
The three companies say that the collaboration across all three parties removes the complexities and regulatory overheads of deploying embedded financial services in Europe. Clients will benefit from faster time to market and the business agility to develop new customer propositions. Temenos and Vodeno are already engaged in several proof of concepts with banks and fintechs across Europe.
The backdrop to the collaboration is that BaaS is emerging as a megatrend within financial services, where licensed banks integrate their digital banking services directly into the products of other non-financial businesses.
Aion Bank and Vodeno – both backed by the global growth investor, Warburg Pincus LLC – were created with this opportunity in mind. The BaaS market in Europe is currently estimated at over US$3bn. BaaS functionality is attractive to banks, fintechs, non-banks and specialized BaaS providers.
Max Chuard, Chief Executive Officer, Temenos said: “Working with Vodeno and Aion Bank, we offer an open cloud banking platform designed for business agility and massive scale to banks, fintechs and established brands that wish to offer embedded financial services and drive ultimate customer experiences. We chose Vodeno and Aion Bank to establish this new channel to market for Temenos, which will help us capture the BaaS market opportunity in Europe. The Temenos Banking Cloud combined with Vodeno’s technology and Aion Bank’s proposition will help banks and non-banks to create, deploy, consume and monetize new banking services.”
Wojciech Sobieraj, Chief Executive Officer, Vodeno, added: “When we created Vodeno, our vision was to enable ‘Banking as a Service’ to any regulated and non-regulated institution. Through this strategic collaboration with Temenos and Aion Bank, we will offer banks, fintechs and brands the richest BaaS proposition in the market. Simply put, the ease in which we can integrate cards and domestic payments, as well as other banking services, will power digital transformation to the next level in Europe.”
Peter Deming, Managing Director and Head of Financial Services in Europe, Warburg Pincus, chimed in with: “Our excitement for the ‘Banking as a Service’ opportunity in Europe continues to build as more companies, banks and brands seek to improve their customer experiences through embedded finance. The collaboration of Temenos with Vodeno and Aion Bank to jointly address this market underlines the companies’ ambition to be the de facto partners for any regulated or non-regulated institution seeking these embedded financial services.”