ieDigital is reporting that it has acquired ABAKA as part of a strategy to provide AI-powered Fintech to credit unions in the US.
Typically, financial services firms like credit unions or smaller banks do not have the capacity to develop Fintech in house. Thus they are compelled to partner or hire tech firms to provide services to remain competitive.
ABAKA is a recommendation engine that incorporates machine learning (ML) and behavioral software to predict which products – such as banking products and savings accounts are the most likely to be bought by financial services consumers. The goal is to provide “ultra-personalized services” by analyzing data to predict their needs and demands accurately.
The purchase of ABAKA by ieDigital follows the acquisition of Connect FSS, a US-based digital banking Software as a Service (SaaS) technology provider. ieDigital, ABAKA, and Connect FSS will operate as three different brands but will be led by CEO Jerry Young.
Young said that consumers today expect sophisticated and targeted services.
“If financial services organisations fail to provide these; or even worse, communicate with their customers using a general scattergun approach, they will alienate them and encourage them to look elsewhere – and with the huge number of providers now out there, people won’t need to look very far.”
Fahd Rachidy, Founder of ABAKA, said by joining with digital, they would enter 2024 with renewed vigor.