Backbase to digitally transform banks in Australasia with new offices

By Edil Corneille

Amsterdam-based Backbase, a digital banking software provider, has announced today the launch of its new offices in Sydney and Melbourne. The company has stated that it is well-positioned to cater to the evolving digital banking landscape in Australasia with the current expansion.

The launch follows the opening of its Asia Pacific (APAC) headquarters in Singapore in January, thereby highlighting Backbase’s commitment to helping banks and financial institutions to digitally transform their businesses.

Through its digital banking platform and deep industry expertise, the company will enable banks in Australia and New Zealand (ANZ) to transform and keep pace with customer expectations as more turn to digital services for their banking needs. The decision to establish offices in Sydney and Melbourne comes as Backbase ramps up local support for new business signed this year.

Jouk Pleiter, CEO, Backbase enthused, “We’re excited to be expanding our presence in ANZ, helping banks and financial institutions in the region accelerate their journey to become digital-first. Digital-first is key to cope with the challenging conditions and take advantage of the emerging opportunities. With accelerating customer adoption of digital and regulated open banking, the future landscape presents significant opportunities for banks with the capabilities to adapt, offering holistic financial solutions and personalizing at scale.”

According to the FinTech and Digital Banking 2025 report by Backbase and IDC, digital banking in APAC is set to accelerate in the next 5 years. The region is also expected to see 100 new financial institutions by 2025, ushered in by liberalization of several markets and issuance of new banking licenses.

While the ‘big 4’ banks are expected to retain their stronghold in ANZ, small and mid-sized banks, as well as digital challengers, will be competing for a larger share of the pie. The region will also see an acceleration of investment in digital banking in pursuit of efficiencies and new revenue sources to offset shrinking revenues, with 35 per cent of IT budgets among Tier 1 and Tier 2 banks to be spent on new technologies.

Neobanks in Australia are emerging to be strong players too, with the recent news of Judo Bank attaining unicorn status in May. These smartbanks which are digital-only banks are here to stay as they offer alternative options to their counterparts.