Amsterdam-based Backbase, a global leader in engagement banking software, has announced the acquisition of Nucoro, a digital wealth platform based in the UK. The terms of the deal remain undisclosed, bringing together two key players in the world of FinTech.
The acquisition aims to bolster the investment capabilities of Backbase’s engagement banking platform by integrating the headless platform capabilities of Nucoro. With this strategic move, Backbase will be well positioned to launch digital end-to-end investment services such as robo-advisory, trading, and hybrid advisory services.
Backbase, globally recognised for its engagement banking software, aims to re-architect banking around the customer. Their flagship product, the Backbase Engagement Banking Platform, is a unified, customer-centric platform designed to expedite digital transformation within banks.
On the other hand, Nucoro’s digital wealth platform serves as a robust foundation for innovative investment offerings, demonstrating the potential for transformation within the WealthTech market.
The acquisition occurs amid predictions of a 10% CAGR for the wealth management platform market, which surpassed the $3bn mark in 2022. Investment products are an important revenue stream for retail banks, private banks, and wealth managers worldwide. This acquisition signifies Backbase’s commitment to helping financial institutions offer superior investment experiences to their customers.
Nucoro had been part of the Backbase FinTech partner ecosystem for the last three years. Both companies have had close collaboration on joint engagements, and their platforms, which are based on open industry standards and share a microservice-based architecture, complement each other. This compatibility should expedite Backbase’s ONE platform, ONE architecture vision.
The merger drew enthusiastic comments from the heads of both companies. Jouk Pleiter, founder and CEO of Backbase, noted the increasing trend of retail banks wishing to launch distinct investment propositions alongside daily banking services. Lennart Asshoff, Nucoro Co-Founder and CEO, expressed excitement about partnering with Backbase to bring the next generation of wealth infrastructure to financial institutions globally.
The Backbase Engagement Banking Platform received recognition as a category leader by industry research analysts at Celent and Omdia. After growing organically to over €200m in revenue, Backbase raised €120m in growth equity funding from Motive Partners in 2022.
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