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NatWest plans to launch a banking service in the UK market as part of a strategic partnership with Poland’s Vodeno Group.
The partnership will enable businesses to embed financial services products such as payments, deposits, point of sale credit and merchant cash advances directly into their ecosystem using Vodeno Group’s BaaS technology, NatWest Group’s banking technology and UK banking licences.
NatWest Group has allocated £115 million to set up a new organization in the UK. High Street Bank will own 82% of the business, while Vodeno TechCo will own the remaining minority stake.
NatWest will invest an additional £50m to acquire a minority stake – initially a 9.9% holding, rising to 18% subject to certain conditions and approvals – in Vodeno Limited, which owns 100% of Vodeno TechCo and Aion Bank.
Vodeno Group is owned by private equity giant Warburg Pincus.
“As a leading supporter of British business, we are committed to investing in digital transformation to deliver a simpler and better banking experience for our customers,” said NatWest Group Chief Executive Alison Rose.
“By entering into this strategic partnership with Vodeno Group, we will be able to meet the emerging needs of our business customers as they seek to integrate financial products into their offerings and travel.
“This strategic partnership represents 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 clients.
“It also complements our existing investment in business banking technology development within our [business banking app] A dead business.”
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