US-based Mbanq has decided to expand its relationship with Switzerland-based cloud banking platform Temenos to improve BaaS adoption in the US. The partnership renewal between the two companies also involved a minority investment from Temenos to Mbanq in a bid to gain a foothold in the BaaS market.

BaaS allows fintechs and brands to incorporate relevant financial services into their customer journeys with a modern front and back-end technology package. The announcement comes a year after the two entities launched a Credit Union-as-a-Service (CUaaS) offering, which allowed credit unions to gain faster time to market with digital financial services for members at a reduced total cost of ownership. By merging Temenos’ composable banking platform with Mbanq’s technologies such as a multi-asset patented digital wallet and a multi-currency, fintechs and brands benefit from a unique BaaS proposition complemented by compliant banking and payment capabilities.

Temenos and Mbanq supply an end-to-end BaaS infrastructure with regulatory support that can aid fintechs in their launching efforts with a cost-effective, pay-as-you-go model. Through this partnership, the two entities can target mid-sized banks in the US and allow them to launch BaaS services such as deposits, credit cards or Buy Now, Pay Later. According to financialit.

net, Temenos and Mbanq aim to help banks overcome the limitations of their legacy technologies, keep up with new entrants, and open new revenue streams. Mbanq officials cited by the same source emphasised that this partnership expansion enables Mbanq to increase its BaaS value proposition across the entire spectrum of embedded finance, from concept to delivery to operations. Moreover, the partnership can help regulated and unregulated entities transform their technology, offerings, and customer experiences in a digital post-pandemic world.

Temenos launched a self-service financial crime prevention solution In October 2022, Temenos has launched a SaaS offering that allows banks to manage financial crime mitigation (FCM) with composable banking services on a single platform. FCM-as-a-Service offers pre-built configurations in conformity with global industry regulations. With self-provisioning and automatic upgrades for fast compliance and time to value, Temenos can help banks achieve lower total cost of ownership and improved customer service.

The solution, which leverages Explainable AI (XAI), enables banks to make decisions by quickly determining if an alert is genuine or not thus improving accuracy and productivity. This is a pay-as-you-go solution that scales depending on the need, offering availability for peak loads or anticipated growth. The service also offers industry-standard certifications in risk, security, and data privacy without the need for new IT infrastructure.

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