UniCredit‘s BAAS
On Wednesday, UniCredit announced that it was spending 370 million euros ($401 million) to buy Aion, a digital bank in Belgium, and Vodeno, a company that offers cloud-based banking services. Vodeno has its own cloud platform, and 200 engineers, developers, and data scientists will be employed by UniCredit as a result of the acquisition. Approximately Euro 370 million is the total purchase price for the 100% acquisition of the Companies (subject to customary price modifications). When the deal closes, which is anticipated in 4Q 2024, subject to regulatory clearances, UniCredit’s consolidated CET1 ratio will be slightly impacted by the acquisition by about 15 basis points.
Breaking Free: UniCredit’s Bold Leap into Tech Sovereignty
- The transaction is a pioneering effort by a bank to fully own a new technology, thereby eliminating any reliance on third-party central banking providers. This will enable UniCredit to:
- Develop a comprehensive suite of products for high-value segments, such as affluent and SMEs, and possess a cloud-based, completely operational, and scalable digital banking platform that is the next generation of core banking technology.
- Additionally, we will improve our ability to innovate and adapt to market changes by increasing our in-house technological expertise by utilizing a discrete team of expert technologists and developers.
- Acquire a distinct innovation and testing center to facilitate the development, testing, and innovation of new solutions and functionalities.
- Utilize a primarily digital bank model to minimize costs, accelerate time-to-market, and integrate new solutions, thereby enabling a more viable and profitable entrance into new European markets. Pursue new targeted client segments and market expansion through a flexible platform.
- Boosts UniCredit’s embedded finance proposition, delivering new services to marketplaces, e-commerce, and retailers, and providing Banking-as-a-Service for select fintechs.
- Foster UniCredit’s competitive advantage in the digital banking landscape for SMEs and individuals by enhancing the proposition and positioning UniCredit as a leader in innovation and customer experience.
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What’s in the Store?
- Proprietary, next generation cloud-based core banking technology
- Belgian digital bank operating with branches across Europe
- Comprehensive suite of Banking-as-a Service products, scalable and flexible via Vodeno’s platform
- 200 engineers, developers and data scientists
- Competitive advantage vis-à-vis pure tech providers, fintechs and incumbents
- Ability to profitably and quickly enter targeted client segments and markets
Industry Comments
Andrea Orcel, Chief Executive Officer of UniCredit said: “This investment enables us to leverage Vodeno’s technology and talent to further develop their proprietary technology using it as a sandbox to develop, test and innovate for the benefit of our broader group. The combination of Aion Bank with the integrated technology provides the route to enter targeted client segments and entire markets across Europe, providing additional opportunities to attractively deploy our excess capital.”
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