NatWest Group has entered a strategic partnership with the Vodeno Group to create a new banking-as-a-service business in the UK.
This partnership will enable businesses to embed financial services products such as payments, deposits, point-of-sale credit and merchant cash advances directly into their ecosystem. This will be powered by Vodeno Group BaaS technology, and NatWest Group banking technology and UK banking licences.
The new body will combine Vodeno Group technological and operational capabilities and its cloud platform with NatWest Group banking technology and expertise.
NatWest has developed its own business banking app Mettle. Vodeno platform will provide a channel for delivering these capabilities to BaaS clients in the UK.
The new entity will be 82% majority owned and consolidated by NatWest. It will also take a minority interest in Vodeno. Initially it will have a 9.9% holding and increase to 18% subject to certain conditions.
Voldeno Group is a European BaaS provider that combines Poland-based Vodeno, a software company providing its API-based technology platform, and Belgium-based Aion Bank, which has a banking licence covering a selection of banking products, including loans.
The group is majority owned by Warburg Pincus.
NatWest Group CEO Alison Rose said, ?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. 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.span>
NatWest recently launched its Carbon Planner tool, which is a free to use digital platform aimed at helping UK businesses manage their future fuel and operational costs.
Copyright ? 2022 FinTech Global
