REG - NatWest Group plc - NatWest and Vodeno Create Strategic Partnership

NatwestAnnouncement

20/10/2022 09:00

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RNS Number : 5468D  NatWest Group plc  20 October 2022

20 October 2022

NatWest and Vodeno Create Strategic Partnership

NatWest Group plc and the Vodeno Group enter into a Strategic Partnership to
Create Banking-as-a-Service Business

NatWest Group plc ("NatWest Group") has entered into a strategic partnership
with the Vodeno Group (comprising of Vodeno Limited and its subsidiaries)
which will see the creation of a Banking-as-a-Service ("BaaS") business in the
UK. This strategic partnership will enable businesses to embed financial
services products such as payments, deposits, point-of-sale credit and
merchant cash advances directly in their ecosystem by leveraging the Vodeno
Group's BaaS technology, and NatWest Group's banking technology and UK banking
licenses.

 

Vodeno Group is a European BaaS provider which combines the Poland-based
Vodeno Sp Z.o.o ("Vodeno TechCo"), a software company providing its API-based
technology platform and the Belgium-based Aion Bank, which has a banking
license covering a range of banking products, including loans, deposits and
access to EEA payment systems. Vodeno Group is majority owned by Warburg
Pincus.

Under the terms of the agreements, a new UK based entity will combine the
Vodeno Group's technological and operational capabilities and its cloud
platform with NatWest Group's banking technology and expertise, building on
NatWest Group's position as a leading supporter of UK business. Through its
business banking app Mettle, NatWest Group has built a standalone core banking
and payments capability, Vodeno's Group's platform will provide a channel for
delivering these capabilities to BaaS clients in the UK.

The new UK entity will be 82% majority owned and consolidated by National
Westminster Bank Plc, with Vodeno TechCo holding the remaining minority
interest. NatWest Group will additionally take a minority interest (initially
a 9.9% holding, increasing to 18% subject to certain conditions and approvals
being met) in Vodeno Limited, which owns 100% of Vodeno TechCo and Aion
Bank.

NatWest Group Chief Executive Alison Rose said:

"As a leading supporter of UK business, we are committed to investing in
digital transformation to provide a simpler and better banking experience for
our customers. By entering into this strategic partnership with Vodeno Group
we will be able to meet the evolving needs of our business customers as they
look to embed financial products in their own propositions and journeys."

"This strategic partnership presents a strong potential source of fee income
in a growing market, and an opportunity to deliver sustainable growth by
building deeper relationships with our corporate customers. It also
complements our existing investment in the development of business banking
technology within our Mettle business."

Wojciech Sobieraj, CEO of Vodeno Sp Z.o.o added:

"Consumers require high quality and accessible banking products that are
end-to-end digital, and Banking-as-a-Service is making this possible. Our
fully API-based platform offers a comprehensive suite of BaaS products that
enable brands to 'embed' financial services directly into their ecosystems to
create seamless customer journeys. We are excited to combine our technology
with NatWest Group to offer the next generation of financial services."

Completion of the arrangements is subject to satisfying various conditions,
including licensing, servicing and other documentation, and obtaining
regulatory approvals (including the UK Financial Conduct Authority and
National Bank of Belgium / European Central Bank).

 

NatWest is committed to make in total i) a capped commitment of c.£115m, to
enable the establishment of the new UK entity; and ii) a €58m investment in
Vodeno Group to acquire an 18% minority stake, investment in each case subject
to certain conditions and approvals being met.

 

ENDS

 

Banking-as-a-Service

Banking-as-a-Service provides corporates and financial institutions with
complete end-to-end banking solutions, allowing them to embed and sell white
labelled financial products underpinned by a bank's secure and regulated
infrastructure combined with a modern API-driven platform.

 

About Vodeno and Aion Bank

Vodeno Sp Z.o.o and Aion Bank have combined a modern cloud-native '360'
platform ecosystem, an EU banking license and a team of banking experts to
offer comprehensive embedded financial services for banks, lenders and
merchants across multiple sectors. From 'smart contract enabled' core banking
to accounts, onboarding, payments, cards, investment and lending solutions,
Vodeno Sp Z.o.o and Aion Bank aim to offer the ability to meet the demands of
regulation while enabling innovation at speed.

 

For further information, please contact:

 

Investor Relations

Alexander Holcroft

Head of Investor Relations

+44 (0) 20 7672 1758

 

NWG Media Relations

+44 (0) 131 523 4205

 

Forward-looking statements

This document may include forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995, such as
statements that include, without limitation, the words 'expect', 'estimate',
'project', 'anticipate', 'commit', 'believe', 'should', 'intend', 'will',
'plan', 'could', 'probability', 'risk', 'Value-at-Risk (VaR)', 'target',
'goal', 'objective', 'may', 'endeavour', 'outlook', 'optimistic', 'prospects'
and similar expressions or variations on these expressions. These statements
concern or may affect future matters, such as NatWest Group's future economic
results, business plans and strategies.  In particular, this document
includes expectations regarding the fee income potential of the BaaS business
and the amount of NatWest Group investment in Vodeno Group and may include
forward-looking statements relating to NatWest Group plc in respect of, but
not limited to: its economic and political risks, its regulatory capital
position and related requirements, its financial position, profitability and
financial performance (including financial, capital, cost savings and
operational targets), the implementation of its purpose-led strategy, its
environmental, social, governance and climate related targets, its access to
adequate sources of liquidity and funding, increasing competition from new
incumbents and disruptive technologies, the impact of the Covid-19 pandemic,
its exposure to third party risks, its ongoing compliance with the UK
ring-fencing regime and ensuring operational continuity in resolution, its
impairment losses and credit exposures under certain specified scenarios,
substantial regulation and oversight, ongoing legal, regulatory and
governmental actions and investigations, the transition of LIBOR and IBOR
rates to alternative risk free rates and NatWest Group's exposure to
operational risk, conduct risk, cyber, data and IT risk, financial crime risk,
key person risk and credit rating risk. Forward-looking statements are subject
to a number of risks and uncertainties that might cause actual results and
performance to differ materially from any expected future results or
performance expressed or implied by the forward-looking statements. Factors
that could cause or contribute to differences in current expectations include,
but are not limited to, future growth initiatives (including acquisitions,
joint ventures and strategic partnerships), the outcome of legal, regulatory
and governmental actions and investigations, the level and extent of future
impairments and write-downs (including with respect to goodwill), legislative,
political, fiscal and regulatory developments, accounting standards,
competitive conditions, technological developments, interest and exchange rate
fluctuations, general economic and political conditions, the impact of
climate-related risks and the transitioning to a net zero economy and the
impact of the Covid-19 pandemic. These and other factors, risks and
uncertainties that may impact any forward-looking statement or NatWest Group
plc's actual results are discussed in NatWest Group plc's UK 2021 Annual
Report and Accounts (ARA), NatWest Group plc's Interim Results for Q1 2022 and
H1 2022 and NatWest Group plc's filings with the US Securities and Exchange
Commission, including, but not limited to, NatWest Group plc's most recent
Annual Report on Form 20-F and Reports on Form 6-K. The forward-looking
statements contained in this document speak only as of the date of this
document and NatWest Group plc does not assume or undertake any obligation or
responsibility to update any of the forward-looking statements contained in
this document, whether as a result of new information, future events or
otherwise, except to the extent legally required.

Legal Entity Identifier:

 NatWest Group plc              2138005O9XJIJN4JPN90
 National Westminster Bank Plc  213800IBT39XQ9C4CP71

 

 

 

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