NatWest Group has entered into a strategic partnership with the Vodeno Group which will see the creation of a Banking-as-a-Service (BaaS) business in the UK.
NatWest moves into BaaS market with Vodeno
This strategic partnership will enable businesses to embed financial services products such as payments, deposits, point-of-sale credit and merchant cash advances directly in their ecosystem by leveraging the Vodeno’s BaaS technology, and NatWest Group’s banking technology and UK banking licenses.
Under the terms of the agreements, a new UK based entity will combine the Vodeno’s technological and operational capabilities and its cloud platform with NatWest Group’s banking technology and expertise.
Through its business banking app Mettle, NatWest Group has built a standalone core banking and payments capability, Vodeno’s platform will provide a channel for delivering these capabilities to BaaS clients in the UK.
The new UK entity will be 82% majority owned and consolidated by National Westminster Bank Plc, with Vodeno TechCo holding the remaining minority interest.
“As a leading supporter of UK business, we are committed to investing in digital transformation to provide a simpler and better banking experience for our customers,” says NatWest Group Chief Executive Alison Rose.
“By entering into this strategic partnership with Vodeno Group we will be able to meet the evolving needs of our business customers as they look to embed financial products in their own propositions and journeys.”
“This strategic partnership presents a strong potential source of fee income in a growing market, and an opportunity to deliver sustainable growth by building deeper relationships with our corporate customers. It also complements our existing investment in the development of business banking technology within our Mettle business.”
NatWest is committed to make in total i) a capped commitment of c.£115 million, to enable the establishment of the new UK entity; and ii) a €58 million investment in Vodeno Group to acquire an 18% minority stake, investment in each case subject to certain conditions and approvals being met.
The post NatWest moves into BaaS market with Vodeno deal appeared first on Payments Cards & Mobile.
