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Banking-as-a-Service (BaaS) Adoption in the US Catalysed by Temenos and Mbanq Partnership

Mbanq, a US Banking-as-a-Service (BaaS) provider, has expanded its relationship with Temenos to accelerate BaaS adoption in the US.

The agreement deepens the companies’ collaboration after last year’s launch of a joint Credit Union-as-a-Service offering.

Temenos has also made a minority investment in Mbanq to capture the BaaS market which has seen explosive growth. So much so, by 2030, embedded finance is expected to be valued at $7trillion. BaaS enables any brand or fintech to embed relevant financial services into their customer journeys with a modern front and back-end technology package.

Mbanq targets brands across a number of sectors such as Ivy League Universities, top sports teams and celebrities. It offers them a ‘as-a-service’ package such as branded deposit programs and debit cards, credit cards, lending and payments. Furthermore, Mbanq has robust relationships with numerous partner banks providing compliant banking operations and enabling them to participate in the lucrative BaaS market.

Temenos composable banking platform combined with Mbanq’s complimentary technologies such as a multi-currency, multi-asset patented digital wallet, brings to market a differentiated BaaS proposition for fintechs and brands on the one hand and modern and compliant banking and payments capabilities to the regulated partner banks on the other.

“Together with Mbanq, we [Temenos] bring to market a unique combination of capabilities in embedded finance underpinned by broad and massively scalable functionality”

Temenos and Mbanq offer an end-to-end BaaS infrastructure including regulatory support to help fintech launch in just a few months and with a cost-effective, pay-as-you-go model. Consumer brands can embed banking and payments services offerings fast and at a low cost.

Replacing legacy tech

This partnership opens up the opportunity to target mid-sized banks in the US, 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. It does so by kicking off an incremental core banking renovation.

Temenos and Mbanq enable these banks to overcome the limitations of their legacy technology by serving brands and fintech at scale using modern API-based, cloud-native technology. Hence, banks can avoid being sidelined by nimble new entrants. An added benefit will be the opening of new revenue streams.

Expanding BaaS services
Max Chuard, Chief Executive Officer, Temenos
Max Chuard, chief executive officer, Temenos

Max Chuard, CEO, Temenos, said: “We are excited to expand our strategic partnership with Mbanq and deliver an end-to-end BaaS technology proposition. This move will extend Temenos’ target addressable market by opening up a new channel to offer BaaS services directly to consumer brands, an incremental market to our business.

“Temenos is offering a unique end-to-end BaaS proposition, which can power the technology needs of all BaaS ecosystem participants. Together with Mbanq we bring to market a unique combination of capabilities in embedded finance underpinned by broad and massively scalable functionality, combined with value-add services such as regulatory and compliance.

“Mbanq and Temenos have the opportunity to deliver this, and the increased and accelerated investments from both parties will leverage this market momentum. I expect this partnership to become one of the key sources of growth for Temenos in the very important US market,” Chuard concluded.

Vlad Lounegov, CEO, Mbanq
Vlad Lounegov, CEO, Mbanq

Vlad Lounegov, CEO, Mbanq, said: “We are delighted to expand our partnership with Temenos. Powered by Temenos’ open platform, Mbanq expands its BaaS value proposition across the entire spectrum of embedded finance, from concept to delivery to operations. Mbanq enhances its technology stack to offer embedded finance at scale to any e-commerce brand.

“This game-changing partnership will drive our company’s growth and help regulated and unregulated entities transform their offerings, technology and customer experiences in the digital post-pandemic world.”

Author

  • Francis is a journalist and our lead LatAm correspondent, with a BA in Classical Civilization, he has a specialist interest in North and South America.

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