FinTech: NatWest Group And Warburg Pincus-Owned Vodeno Tie-Up For Providing BaaS

October 21, 2022 | FinTech, News
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A new UK-based entity will offer Banking-as-a-Service to clients.

NatWest Group (LON: NWG) and European BaaS provider Vodeno Group have entered a strategic partnership to float a new entity that will offer Banking-as-a-Service to clients in the UK. The Vodeno Group, which owns the Poland-based Vodeno Sp Z.o.o, a software company providing its API-based technology platform and the Belgium-based Aion Bank, is majority owned by Warburg Pincus (NYSE: WPCA). (NatWest Group)

The new business unit, to be based in the UK, will be 82% majority owned and consolidated by National Westminster Bank Plc, with Vodeno TechCo holding the remaining minority interest. NatWest Group will additionally take a minority interest (initially a 9.9% holding, increasing to 18% subject to certain conditions and approvals being met) in Vodeno Limited, which owns 100% of Vodeno Sp Z.o.o and Aion Bank.

The new joint BaaS business will allow businesses to embed financial services products such as payments, deposits, point-of-sale credit and merchant cash advances directly in their ecosystem. The two partners will bring their respective strengths to the JV, namely NatWest’s banking technology and UK banking licenses, as well as Vodeno’s BaaS technology.

“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,” said NatWest Group Chief Executive Alison Rose.

“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,” added Rose. “It also complements our existing investment in the development of business banking technology within our Mettle business.”

Mettle is NatWest’s business banking app through which it has built a standalone core banking and payments capability.

Related Story: Finastra To Offer Banks Cross-Border Payments Via Visa Direct

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