Temenos announced that Mbanq, one of US’s leading Banking-as-a-Service (BaaS) providers, has expanded its relationship with Temenos to accelerate BaaS adoption in the US. The agreement deepens the companies’ collaboration after last year’s launch of a joint Credit Union as-a-Service offering. Temenos has also made a minority investment in Mbanq to capture the BaaS market which has seen explosive growth on the back of embedded finance valued at $7 trillion market capitalization by 2030.

BaaS enables any brand or FinTech to embed relevant financial services into their customer journeys with a modern front and back-end technology package. Mbanq is a leading BaaS provider in the US, one of the fastest growing BaaS markets in the world. Mbanq targets brands across a number of sectors such as Ivy League Universities, top sports teams and celebrities offering them a comprehensive ‘as-a-service’ package such as branded deposit programs and debit cards, credit cards, lending and payments.

Furthermore, Mbanq has robust relationships with numerous partner banks providing compliant banking operations and enabling them to participate in the lucrative BaaS market. Temenos composable banking platform combined with Mbanq’s complimentary technologies such as a multi-currency, multi-asset patented digital wallet, brings to market a differentiated BaaS proposition for FinTechs and brands on the one hand and modern and compliant banking and payments capabilities to the regulated partner banks on the other. Temenos and Mbanq offer an end-to-end BaaS infrastructure including regulatory support to help FinTechs launch in just a few months and with a cost-effective, pay-as-you-go model.

Consumer brands can embed banking and payments services offerings fast and at a low cost. This partnership opens up the opportunity to target mid-sized banks in the US, enabling them to not only launch BaaS services such as deposits, credit cards or Buy Now Pay Later, but also future-proof their technology stacks by kicking off an incremental core banking renovation. Temenos and Mbanq enable these banks to overcome the limitations of their legacy technology by serving brands and FinTech at scale using modern API-based, cloud-native technology.

Hence, banks can avoid being sidelined by nimble new entrants and can also open up new revenue streams.