Temenos and Mbanq expanded their partnership to speed U.S. Banking-as-a-Service (BaaS) adoption.
The companies announced their deeper collaboration Thursday (Dec. 1), saying it continues a relationship that began last year when the companies joined forces to develop a Credit-Union-as-a-Service tool.
“This partnership opens up the opportunity to target mid-sized banks in the U.S., enabling them to not only launch BaaS services such as deposits, credit cards or Buy Now, Pay Later, but also future-proof their technology stacks by kicking off an incremental core banking renovation,” the companies said in a news release.
As part of the arrangement, Temenos — a Switzerland-based banking platform — has made a minority investment in Mbanq, a BaaS firm headquartered in Naples, FL.
Tenemos said it hopes to “capture the BaaS market which has seen explosive growth on the back of embedded finance valued at $7 trillion market capitalization by 2030.”
In fact, embedded finance has become a “need to have” for banks and enterprises, PYMNTS noted last month as part of our conversation with Deirdre McClure, chief customer officer at Treasury Prime.
She said the demand for seamless financial interactions is particularly strong among younger consumers. The benefits can be significant for the providers and platforms that are adept at meeting that demand, primarily via ancillary revenue streams and increased customer loyalty.
“When consumers today are developing brand loyalties around financial services and banking services, they have a lot more choices,” McClure said, arguing that the era of walking into a branch, opening an account, and staying with that bank for decades is over.
She also said there’s a “greenfield opportunity” for services that can help businesses enter into the world of embedded finance, as many of them recognize the benefits of the concept but have little idea how to put it into practice.
“These companies don’t know what they don’t know about banking,” McClure said
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