Mbanq Signs with Temenos to Launch World’s First Credit Union-as-a-Service and Accelerate Banking-as-a-Service in US Market

Rhea-AI Summary

Mbanq has partnered with Temenos to launch a Credit Union-as-a-Service (CUaaS) solution targeting the $3.6 billion US Credit Union market. This collaboration allows Credit Unions to expedite digital transformation and offers innovative financial services with reduced costs. The CUaaS integrates modern technology, legal compliance, and operational support through Temenos Banking Cloud. With over 5,000 US Credit Unions, this partnership aims to streamline services and promote competitive offerings, leveraging cloud technology to enhance member experiences.

Positive

• Partnership with Temenos enhances Mbanq's growth potential in the $3.6 billion US Credit Union market.
• Integration of modern digital financial services facilitates rapid digital transformation for Credit Unions.
• Temenos Banking Cloud provides comprehensive support including operations and compliance, reducing operational burdens.

Negative

• None.

• Temenos partners with Silicon Valley-based Mbanq to power innovative Credit Union-as-a-Service (CUaaS) offering for US Credit Unions, a market estimated at $3.6bn annually

• Mbanq’s CUaaS, powered by The Temenos Banking Cloud, enables Credit Unions to gain faster time to market with cutting-edge digital financial services for members at a reduced total cost of ownership

• CUaaS integrates modern digital financial technology with comprehensive operations and legal compliance and is the world’s first end-to-end Credit Union solution

GENEVA--(BUSINESS WIRE)-- Silicon Valley-based Mbanq, a Banking-as-a-Service (BaaS) provider and one of the world’s fastest growing FinTechs, today announced it has signed a strategic agreement with Temenos (SIX: TEMN), the open cloud banking company, to launch an innovative Credit-Union-as-a Service (CUaaS) offering, and to accelerate BaaS adoption across the US.

CUaaS is offered by Mbanq’s Credit Union Service Organization (CUSO) and will be powered by The Temenos Banking Cloud. This solution is a new end-to-end comprehensive service to help US Credit Unions of any size accelerate their digital transformation and deliver innovative digital financial services and outstanding experiences to members. Mbanq’s CUaaS combines Temenos’ modern cloud technology with operations, legal compliance and financial services solutions, wrapped into a single Credit Union ecosystem. The two companies are already engaged in customer acquisition and proof of concepts in the US with Credit Unions.

The US has over 5,000 credit unions with over 100 million members representing over $3.6 billion per year in technology spend. However, many credit unions are burdened by legacy systems unable to offer basic digital banking services such as digital onboarding, which emerged as a ‘must-have’ capability during the pandemic. Together, Mbanq and Temenos will offer rapid digital transformation so Credit Unions can deliver competitive financial services to their members through all touchpoints. This powerful combination will also reduce the time required to launch and operate a de novo Credit Union.

These capabilities will be powered by Temenos open cloud technology. The Temenos Banking Cloud, which combines Temenos Transact, Temenos Infinity and Lifecycle Management banking services, will connect via REST APIs to the Mbanq cloud platform.

Mbanq will also offer a fast-track solution based on Temenos’ technology to FinTechs and e-commerce firms wishing to embed banking services, such as payments and lending and broaden their portfolio of products rather than develop their own technology or go through the lengthy and costly process of obtaining a banking charter. Furthermore, Temenos will offer value-added BaaS capabilities to banks such as lending, Buy Now Pay Later (BNPL) or credit card services through Mbanq.

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 in a seamless and cost-effective way on modern cloud technology. Together with Mbanq, we can support Credit Union digital transformation, taking away the complexity of managing technology so they can focus on providing innovative banking services to members.”

More than 3,000 financial services institutions around the world leverage 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.

Vlad Lounegov, CEO, Mbanq, said: “We are delighted to partner with Temenos, the market-leading banking technology provider. Powered by The Temenos Banking Cloud, Mbanq takes to market a Credit Union-as-a-Service offering that automates every operational requirement a modern Credit Union needs. This game-changing partnership will drive our company’s growth and help regulated and unregulated entities transform their offerings, technology and customer experiences in the digital post-pandemic world.”

Mbanq CUSO prioritizes rapid digital transformation so Credit Unions can seamlessly deliver competitive financial services to members in niche markets through online and mobile channels.

– Ends –

About Mbanq

Mbanq is a Banking-as-a-Service (BaaS) provider and technology innovator and one of the world’s fastest growing FinTechs. It operates dozens of banks and Credit Unions across America and the world. Headquartered in Silicon Valley, Mbanq has 150 employees and offices and development centers around the world, including San Francisco, Singapore, Germany and Croatia. www.mbanq.com

Mbanq CUSO implements the first-in-the-world Credit Union-as-a-Service (CUaaS), a comprehensive technology and services ecosystem that provides everything a Credit Union needs in a unified manner. www.mbanq.com/cuaas

About Temenos

Temenos AG (SIX: TEMN) is the world’s leader in banking software. Over 3,000 banks across the globe, including 41 of the top 50 banks, rely on Temenos to process both the daily transactions and client interactions of more than 1.2 billion banking customers. Temenos offers cloud-native, cloud-agnostic and AI-driven front office, core banking, payments and fund administration software enabling banks to deliver frictionless, omnichannel customer experiences and gain operational excellence.

Temenos software is proven to enable its top-performing clients to achieve cost-income ratios of 26.8% half the industry average and returns on equity of 29%, three times the industry average. These clients also invest 51% of their IT budget on growth and innovation versus maintenance, which is double the industry average, proving the banks’ IT investment is adding tangible value to their business.

For more information, please visit www.temenos.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211010005044/en/

Investors

Adam Snyder

Head of Investor Relations, Temenos

Email: asnyder@temenos.com

Tel: +41 22 708 1515

Media

Haya Herbert-Burns

Teneo for Temenos

Email: haya.herbertburns@teneo.com

Tel: +44 203 757 9257

Source: Temenos

FAQ

What is the significance of the partnership between Mbanq and Temenos for TMSNY?

The partnership will drive growth in the $3.6 billion US Credit Union market by offering innovative Credit Union-as-a-Service solutions.

How does the CUaaS offering benefit Credit Unions in the US?

CUaaS enables Credit Unions to accelerate digital transformation, reduce operational costs, and provide competitive financial services.

What technology is powering the CUaaS solution?

The CUaaS solution is powered by the Temenos Banking Cloud, which integrates essential operational and compliance services.

How many Credit Unions could potentially benefit from this partnership?

Over 5,000 Credit Unions in the US, which serve more than 100 million members, can benefit from this partnership.

What are the expected outcomes of the Mbanq and Temenos collaboration for TMSNY shareholders?

Shareholders can expect potential growth and increased market penetration in the US Credit Union sector.