Arion Bank chooses Volante to modernise payments & boost compliance

By Gloria Methri

Arion Bank, one of Iceland’s leading financial institutions, has partnered with Volante Technologies to upgrade its payments infrastructure and enhance compliance capabilities. The collaboration supports the bank’s broader goals of digital transformation and regulatory readiness as it anticipates future growth in transaction volumes.

The third-largest bank in Iceland by assets, Arion Bank offers a wide range of services in retail, corporate, and investment banking. As the financial services sector faces increasing regulatory and operational demands, the bank has sought a scalable and modernised solution to replace its existing payments hub.

Through its alliance with Volante Technologies—a global provider of cloud-based Payments as a Service (PaaS)—Arion Bank aims to implement an API-driven platform that supports multi-rail payment processing and integrates efficiently with emerging payment networks. This transition is expected to assist the bank in meeting compliance requirements for the upcoming ISO 20022 CBPR+ deadline in November 2025 and the Digital Operational Resilience Act (DORA).

Additionally, the solution will enable Arion Bank to prepare for SEPA Instant Payments (SEPA IP), anticipated to be rolled out across the region between 2026 and 2027, aligning with its long-term innovation strategy.

“We needed a partner who could provide both the technology and guidance to help us navigate the complexities of evolving regulatory standards,” said Björn Björnsson, CIO at Arion Bank. “Volante is a strong fit for our strategic objectives. As the partnership progresses, Arion Bank will explore additional ways to leverage Volante’s innovative technology stack. The modular, component-based design of Volante’s PaaS allows Arion Bank to implement and scale new products and services at its own pace, enabling agility to adapt to future market demands. Given Iceland’s market size, this presents a significant competitive advantage.”

Deepak Gupta, EVP Product, Engineering & Services at Volante Technologies, said, “We are delighted to partner with Arion Bank, a leader in Iceland’s banking sector. From the beginning, it was evident that the bank understood the value we deliver beyond our cloud payments technology. We will continue to serve the organisation as a trusted partner throughout its modernisation journey, ensuring the team can meet its strategic business goals, including strengthening its compliance response and preserving its ability to adapt to change quickly.”