NatWest to launch £120m BaaS business in UK with Vodeno

By Gloria Methri

UK high street bank NatWest Group has teamed up with the Vodeno Group to launch Banking-as-a-Service (BaaS) business targeting UK corporates.

The deal, which will see the bank invest £115 million, will combine Vodeno’s BaaS technology with the banking technology and UK licenses of NatWest.

Vodeno is a Polish software vendor that provides an API-based technology platform and uses the European banking licence of Aion Bank. The partnership aims to modernise the delivery of financial services and enable the bank’s customers to embed products such as payments, deposits, PoS credit, and merchant cash advances.

NatWest has already developed a standalone core banking and payments capability through its business banking app Mettle. Vodeno will provide a channel for delivering these capabilities to BaaS clients in the UK.

Alison Rose, NatWest Group Chief Executive said, “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. 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.”

NatWest to own 82% of the new banking business

The new UK venture will be 82% owned and consolidated by NatWest Bank, while Vodeno TechCo will hold the minority interest. The bank will additionally take a minority interest (up to 18%) in Vodeno Limited, which owns 100% of Vodeno TechCo and Aion Bank.

Wojciech Sobieraj, CEO of Vodeno Sp. z.o.o said, “Consumers require high quality and accessible banking products that are end-to-end digital, and Banking-as-a-Service is making this possible. 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. We are excited to combine our technology with NatWest Group to offer the next generation of financial services.”