Temenos and Vodeno to enable regulated and non-regulated entities to embed financial services into their customer journeys
GENEVA, Switzerland – September 23, 2021 – 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, today 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 personalized 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 USD 3 billion. BaaS functionality is attractive to banks, fintechs, non-banks and specialized BaaS providers, who can now use the combined power of The Temenos Banking Cloud and Vodeno’s technology to create, deploy, consume or monetize 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 monetize 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.”
Temenos AG (SIX: TEMN) is the world’s leader in banking software. Over 3,000 banks across the globe, including 41 of the top 50 banks, rely on Temenos to process both the daily transactions and client interactions of more than 1.2 billion banking customers. Temenos offers cloud-native, cloud-agnostic and AI-driven front office, core banking, payments and fund administration software enabling banks to deliver frictionless, omnichannel customer experiences and gain operational excellence.
Temenos software is proven to enable its top-performing clients to achieve cost-income ratios of 26.8% half the industry average and returns on equity of 29%, three times the industry average. These clients also invest 51% of their IT budget on growth and innovation versus maintenance, which is double the industry average, proving the banks’ IT investment is adding tangible value to their business.
Vodeno’s mission is to revolutionise the Financial Services Industry. Combining a modern cloud native ‘360’ platform ecosystem with deep banking experience, we are uniquely positioned to help regulated and non-regulated entities deliver compelling and unique customer propositions. The VODENO Cloud Platform (VCP) is one of the world’s first and most comprehensive ‘Banking as a service ‘platforms, enabled in partnership by ECB licensed Aion Bank to deliver embedded financial services for banks, lenders and merchants regardless of size or sector. Vodeno offers the ability to meet the demands of regulation while enabling innovation at speed.
About Aion Bank
Aion Bank is a full service credit institution incorporated as a public limited liability company under Belgian law – registered seat avenue de la Toison d’Or 26/28 1050 Brussels, Belgium.
Aion Bank operates under a Belgian banking licence.
Aion Bank is a full service digital bank that combines the best in technology with the breadth of services and guarantees of a traditional bank. Aion’s unique subscription model gives members access to all-inclusive banking, including very high interest rates on savings accounts, commission-free portfolio management and competitive rates for loans, for a fixed monthly fee. In addition, Aion Bank offers white-label embedded finance solutions to financial and non-financial businesses.
Aion Bank is backed by global private equity firm Warburg Pincus LLC and is managed by seasoned international executives with extensive expertise in growing financial institutions.