Following this agreement, the illimity Bank will be provided with the solutions, services, and industry expertise of Engineering Group in order to meet the needs, preferences, and demands of its customers and to respect the requirements of the market. In addition, Engineering Group will be able to incorporate into its offerings portfolio new digital banking solutions, such as the ones designed for the small business and retail banking segments.
According to the press release, the partnership offers for consideration EUR 55,5 million for illimity Bank. The financial institution will be able to book the funds in the second quarter of 2023, and it will be paid in tranches between 2023 and 2026. Additional EUR 4,5 million might be added between 2024-2032, for new platform updates provided by the illimity Bank, which are available for Engineering to acquire.
The agreement is also set to entail the payment by the Engineering Group to illimity Bank of a predetermined royalty structure, based on the results offered by Engineering throughout the offer to other operators of the solution. Moreover, it will also focus on the exclusivity and security of Engineering in marketing from 2023 to 2032, with the possibility of extension.
The illimity ecosystem was signed for EUR 15,6 million per year between 2023 and 2032, which represents a part of the investments and expenses for the provision of the IT services already planned by illimity Bank in the following years.
In June 2023, the European Investment Fund (EIF) announced that it provided two guarantees totaling EUR 50 million to the illimity Bank, in order to improve access to finance small and medium-sized enterprises (SMEs) in Italy.
Following this announcement, the SMEs were enabled to have a primary focus on sustainability, security, and digitalisation processes. The EIF transactions were backed by the InvestEU programme. The illimity Bank was given the capability to further improve its suite of solutions and to offer it to digitalisation-driven enterprises and companies. The aim was set to provide access to finance for research SMEs and small mid-caps, as well as on strengthening the uptake of digital technologies and the digital transformation of businesses.
Furthermore, the investment was set to enable the illimity Bank to further enhance the green and sustainable transition of the economy, which prioritised the process of encouraging environmentally friendly and inclusive investments of the target final recipients.
Later in the same month, illimity Bank was mentioned in an eBook published by The Paypers, which focused on Open Banking. The bank was one of the financial institutions which took part in the interview process, offering a resounding consensus on the transformative influence of Open Banking in the credit industry.
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