Silicon Valley-headquartered Mbanq, a Banking-as-a-Service (BaaS) provider that claims to be one of the fastest-growing Fintech firms, has entered into an agreement with Temenos (SIX: TEMN), the Open Cloud banking firm, in order to introduce an innovative Credit-Union-as-a Service (CUaaS) offering, and to “accelerate BaaS adoption across the US.”
CUaaS is provided by Mbanq’s Credit Union Service Organization (CUSO) and will be “powered by The Temenos Banking Cloud.”
This solution is “a new end-to-end comprehensive service to help US Credit Unions of any size accelerate their digital transformation and deliver innovative digital financial services and outstanding experiences to members.”
As mentioned in a release shared with Crowdfund Insider, Mbanq’s CUaaS “combines Temenos’ modern Cloud technology with operations, legal compliance and financial services solutions, wrapped into a single Credit Union ecosystem.”
The two firms are presently engaged in customer acquisition and proof of concepts in the United States with Credit Unions.
As noted in the release, the US has more than 5,000 credit unions with 100 million+ members representing more than $3.6 billion per year in technology spend. But many credit unions are “burdened by legacy systems unable to offer basic digital banking services such as digital onboarding, which emerged as a ‘must-have’ capability during the pandemic,” the announcement revealed.
As stated in the release:
“Together, Mbanq and Temenos will offer rapid digital transformation so Credit Unions can deliver competitive financial services to their members through all touchpoints. This powerful combination will also reduce the time required to launch and operate a de novo Credit Union.”
These capabilities will be “powered by Temenos open Cloud technology,” the update noted while adding that the Temenos Banking Cloud, which combines Temenos Transact, Temenos Infinity and Lifecycle Management banking services, will “connect via REST APIs to the Mbanq cloud platform.”
Mbanq will also provide a fast-track solution based on Temenos’ technology to Fintech companies and digital commerce platforms that want to embed banking services, like payments and lending and widen their portfolio of products instead of creating their own technology or go through the “lengthy and costly process of obtaining a banking charter.”
Additionally, Temenos will aim to provide “value-added BaaS capabilities to banks such as lending, Buy Now Pay Later (BNPL) or credit card services through Mbanq.”
Max Chuard, CEO at Temenos, stated:
“Following our strategy to accelerate the adoption of Banking-as-a-Service in Europe, we are now excited to expand in the US. With this strategic agreement with Mbanq, we are opening up a new channel to the BaaS space and are increasing our penetration in the US Credit Union market. Existing Temenos Credit Union clients will benefit from Credit Union-as-a Service to run their operations in a seamless and cost-effective way on modern cloud technology. Together with Mbanq, we can support Credit Union digital transformation, taking away the complexity of managing technology so they can focus on providing innovative banking services to members.”
Over 3,000 financial services institutions are leveraging Temenos’ modern, open, Cloud technology. The Temenos Banking Cloud “enables financial institutions to consume, manage and maintain banking services in a secure, continually evolving, self-service platform while allowing them to develop new business models,” the announcement explained.
Vlad Lounegov, CEO at Mbanq, remarked:
“We are delighted to partner with Temenos, the market-leading banking technology provider. Powered by The Temenos Banking Cloud, Mbanq takes to market a Credit Union-as-a-Service offering that automates every operational requirement a modern Credit Union needs. 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.”