The acquisition will allow Backbase to incorporate Nucoro's headless platform capabilities directly into the Backbase Engagement Banking platform, enabling its customers to launch digital end-to-end investment offerings, such as robo-advisory, trading, or hybrid advisory services.
The wealth management platform market eclipsed USD 3 billion in 2022 with analysts predicting a 10% CAGR in the next 10 years, as per the Netherlands-based fintech. Investment products are an important value creator globally for retail banks, private banks, and wealth managers, and this acquisition demonstrates Backbase’s commitment to helping financial institutions deliver investing experiences to their customers.
Officials form Backbase said they see a trend where retail banks want to quickly launch differentiating investment propositions to complement their daily banking services. Think of capabilities like enhanced savings, pension products, stock trading, and portfolio management. With these services, they can generate extra revenue and expand their share of wallet with their most valuable customers. For private banks and wealth management firms, they see a growing demand to modernise their legacy point solutions and hollow out their bespoke core systems.
Since 2020, Nucoro was part of the Backbase fintech partner ecosystem and both companies have been closely collaborating on joint engagements. At a technical level, both platforms are based on open industry standards and share a microservice-based architecture, enabling Backbase to accelerate its ONE platform, ONE architecture vision.
Executives from Nucoro explained that Backbase is a suitable partner to bring the next generation of wealth infrastructure to financial institutions around the world. As a trusted innovation partner to financial institutions, Backbase offers us the reach and technical expertise to take our vision further.
The Backbase Engagement Banking Platform was recognized as a leader earlier this year by industry research analysts at Celent and Omdia. Having grown organically to over EUR 200 million in revenue, Backbase raised EUR 120 million in growth equity funding from Motive Partners in 2022.
Backbase is on a mission to re-architect banking around the customer. It created the Backbase Engagement Banking Platform – a unified platform with the customer at the centre, enabling banks to accelerate their digital transformation. From customer onboarding, to servicing, loyalty, and loan origination, their single platform — open and frictionless, with ready-to-go apps — improves every aspect of the customer experience.
Built from the ground up with the customer at the heart, the Engagement Banking Platform easily plugs into existing core banking systems and comes pre-integrated with some of the latest fintechs so financial institutions can innovate at scale.
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