Mbanq, a fintech that focuses on Banking as a Service, has announced a partnership with Temenos, the open banking cloud platform to launch an innovative Credit Union as a Service platform that will help the credit unions to digitalise their services quickly.
There are over 5000 credit unions in the US right now and the challenge that they face is the need to digitalize their data and operations to be in tune with the times and also to be able to interact with other systems that have already moved into the digital ecosystem. The new solution is expected to accelerate the digital transformation of these unions by providing them with technology services, legal, compliance, and financial service solutions. This will help the credit unions to transform their legacy systems into the latest digital systems so that they can continue to remain competitive.
Max Chuard, CEO, Temenos said: “Following our strategy to accelerate the adoption of Banking-as-a-Service in Europe, we are now excited to expand in the US. With this strategic agreement with Mbanq, we are opening up a new channel to the BaaS space and are increasing our penetration in the US Credit Union market. Existing Temenos Credit Union clients will benefit from Credit Union-as-a Service to run their operations seamlessly and cost-effectively on modern cloud technology. Together with Mbanq, we can support Credit Union’s digital transformation, taking away the complexity of managing technology so they can focus on providing innovative banking services to members.”
This partnership would also be looking to push their banking as a service solution to fintech and businesses that require embed banking services, such as lending and payments, into their platforms. This would help these businesses to add more banking products to their platform which they can offer to the end-user without the hassle of having to set up the technology and satisfy the other requirements that the banking charter expects them to do.
More than 3,000 financial services institutions are reportedly leveraging Temenos’ modern, open, cloud technology. The Temenos Banking Cloud enables financial institutions to consume, manage and maintain banking services in a secure, continually evolving, self-service platform while allowing them to develop new business models. This partnership is expected to grow strongly within the US with their innovative products already being trialled at different credit unions.