Temenos (SIX: TEMN), the banking software company, Vodeno, a fully cloud-native BaaS provider and Aion Bank, a European licensed digital bank and credit institution, have announced a strategic collaboration to accelerate Banking as a Service (BaaS) deployment in Europe.
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 seamlessly in their customer journey. 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 Temenos Banking Cloud combines Temenos Transact and Temenos Infinity banking services which will connect via REST APIs to the VODENO Cloud Platform. Through the strategic alliance, clients will be able to instantly issue digital debit and credit cards for retail and business banking customers. Additionally, existing Temenos customers can benefit from financial services embedded in personalised customer journeys, delivered in real-time, at the right touchpoint with intelligent and contextual experiences.
More than 3,000 financial services institutions around the world leverage Temenos’ modern, open, cloud technology. The Temenos Banking Cloud enables banks and businesses to consume, manage and maintain banking services in a secure, continually evolving, self-service platform while allowing them to develop new business models.
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 $3billion. BaaS functionality is attractive to banks, fintechs, non-banks and specialised BaaS providers, who can now use the combined power of The Temenos Banking Cloud and Vodeno’s technology to create, deploy, consume or monetise new banking services. Temenos, Aion and Vodeno can now offer any brand digital banking services to their customers, such as mobile bank accounts, debit or credit cards and payment services, without the need to have their own banking license.
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 monetise new banking services.”
Wojciech Sobieraj, Chief Executive Officer, Vodeno, said: “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, said: “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.”