NatWest launches BaaS business

High street bank NatWest is launching a new Banking-as-a-Service (BaaS) business in the UK in collaboration with the Vodeno Group.

The partnership will combine NatWest’s banking technology and licences with the European software vendor’s cloud-based BaaS technology.

The service will allow businesses to embed financial services products, including payments, deposits and point-of-sale credit, directly into their ecosystem.

NatWest already has a business banking app, Mettle, which has core banking and payments capabilities, but Vodeno will now add a channel for delivering these to BaaS clients in the UK.

“As a leading supporter of UK business, we are committed to investing in digital transformation to provide a simpler and better banking experience for our customers,” NatWest Group CEO  Alison Rose said.

“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.”

Rose added that the partnership presents a “strong potential source” of fee income, as well as an opportunity to deliver sustainable growth through deeper relationships with corporate customers.

“Consumers require high quality and accessible banking products that are end-to-end digital, and Banking-as-a-Service is making this possible,” Vodeno CEO Wojciech Sobieraj said.

“Our fully API-based platform offers a comprehensive suite of BaaS products that enable brands to ‘embed’ financial services directly into their ecosystems to create seamless customer journeys.”

The new UK entity will be 82 per cent owned and consolidated by NatWest Bank, with Vodeno holding the remaining minority interest.

NatWest has also committed to a capped investment of around £120m.