NatWest and Vodeno Group partner up to start BaaS business
NatWest Group has entered into a strategic partnership with Vodeno Group to create a Banking-as-a-Service (BaaS) business in the UK.
NatWest will launch a UK BaaS firm with Vodeno. Image source: NatWest
The two firms aim to provide businesses the ability to embed financial services products such as payments, deposits, point-of-sale (POS) credit and merchant cash advances directly into their ecosystem.
The partnership will leverage Vodeno’s BaaS technology and NatWest’s banking technology, as well as UK banking licences.
The new UK entity will be majority-owned by NatWest, with Vodeno owning the minority shares. NatWest has committed to make a capped investment of £120 million into the UK entity, and a €58 million investment in Vodeno Group for an 18% minority stake in it.
“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,” says Alison Rose, NatWest Group chief executive.
“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.”
Vodeno is a European BaaS provider, majority-owned by Warburg Pincus. It consists of Poland-based firm Vodeno, a software firm with API technology, and Belgium’s Aion Bank, which has a banking licence for loans, deposits and access to EEA payment systems.
