Top FinTechs in the European Core Banking ecosystem

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Core Banking (centralised online real-time exchange) is a banking service provided by a group of networked bank branches where customers may access their bank account and perform basic transactions from any of the member branch offices. The core banking system helps banks modernise efficiently. With the current intensifying competition, a large number of next-generation banks are gaining the upper hand by selecting core banking systems, thus forcing incumbent banks to review their legacy systems.

Here are the top Core Banking suppliers in the European FinTech space –

1. Temenos

Geneva-based Temenos offers core banking systems to retail, corporate, universal, private, treasury, fund administration, Islamic, microfinance and community banks.

The company recently announced the launch of a SaaS Explainable AI (XAI) model for assisting fund administrators, insurers, asset managers, and custodians to enhance their operational efficiency by utilising static and transactional data patterns along with human expertise and judgment. The technology is expected to allow fund accounting teams to reduce the number of manual interventions in their exceptions management processes by identifying price threshold breaches caused by the extreme market volatility caused by COVID-19.

Banco del Sol, the digital bank of Grupo Sancor Seguros, also went live with Temenos Transact, the next generation in core banking, Temenos Financial Crime Mitigation, and Temenos Analytics, this month.

2. Mambu

Berlin-based Software-as-a-Service provider, Mambu aims to provide a powerful alternative to the costs and complexity of traditional core banking systems or custom in-house solutions. The company aims to boost investments and lending and helps clients to successfully start up new business ventures, transform existing operations, launch new products and expand into new markets. The company provides financial institutions of all sizes with the agility to rapidly design, launch, service and scale their banking and lending portfolio.

Recently, Mambu announced a partnership today with Google Cloud in a bid to boost its reach and service delivery globally. The partnership will enable the banking platform’s customers to launch and extend banking as well as lending operations in more countries. It also integrated with Currencycloud with an aim to offer transparent international payments capabilities to clients.

Today, the Berlin-based start-up services over 150 banks, fintechs, and telecom companies with over 14 million end-users. Mambu helps prominent companies like Santander, N26, and Orange to rapidly design, launch, and scale their digital-first banking and lending services.

3. Finastra

London-based Finastra recently the availability of a new application, Conpend TRADE AI, on its FusionFabric.cloud open development platform. The app builds on the functionality of Finastra’s Fusion Trade Innovation technology and utilises optical character recognition (OCR), natural language processing (NLP), and progressive machine learning to reduce the risk, processing time, and cost of trade finance operations.

Finastra has also helped VPBank separate its treasury operations from its legacy core banking system with Finastra’s Fusion Kondor and Fusion Risk solutions. Delivered through Finastra’s Fusion Adopt implementation program, this move to a modern system will enable the bank to grow its financial markets division by developing new complex products and improving operational efficiency through automation.

FinTech Finastra was formed in late 2017 through the combination of D+H and Misys, after Vista Equity Partners acquired Misys in June 2012 and subsequently purchased D+H in 2017. Finastra has a range of pre-integrated solutions spanning retail banking, transaction banking, lending, and treasury and capital markets.

4. Backbase

Founded in 2003 and headquartered in Amsterdam and Atlanta, Backbase is the creator of the Backbase Omni-Channel Banking Platform, a digital banking software solution that aims to unify data and functionality from traditional core systems and new fintech players into a better digital customer experience. The FinTech software provider empowers financial institutions to accelerate their digital transformation and effectively compete in a digital-first world.

The FinTech recently announced that Mauritius Commercial Bank (MCB), a commercial bank in Mauritius, has gone live with a new mobile app for SMEs built from the ground up on the Backbase Digital-first Banking Platform. Backbase, this year, also announced the appointment of Thomas Fuss as the new Chief Technology Officer.

Backbase’s platform is being used by financials including ABN AMRO, AIB, Barclays, Banamex, Bank United, BNP Paribas, Citi bank, Citizens Bank, CheBanca!, HDFC, Hiscox, Central1, KeyBank, Lloyds Banking Group, Metrobank, IDFC First, Navy Federal Credit Union, PostFinance, RBC, Societe Generale, and Westpac among others.

READ MORE: Core Banking Systems and Suppliers Report 2020 by IBS Intelligence