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audax Financial Technology and Thought Machine announce strategic partnership to create customised end-to-end digital banking solutions, at faster speeds and lower costs

Posted on by Min Thu Ye
Press Release

audax Financial Technology and Thought Machine announce strategic partnership to create customised end-to-end digital banking solutions, at faster speeds and lower costs

audax

28 February, 2024

  • Holistic integration for modern customer needs: Delivering pre-integrated digital banking technology and Banking-as-a-Service (BaaS) solutions.
  • Flexibility and scalability: Integrating audax’s scalable digital banking technology platform with Thought Machine’s highly configurable core banking technology, enabling institutions to swiftly modernise infrastructure and develop fully customisable financial products for end customers.
  • Seamless coexistence with legacy systems: Facilitating the swift establishment of digital banking or BaaS within months.
audax logo and Thought Machine logo

SINGAPORE, 28 February 2024 – audax Financial Technology (“audax”), a comprehensive digital banking technology solutions provider backed by Standard Chartered, and Thought Machine, a global leader in next-generation core banking technology, have announced a strategic partnership to transform and modernise the banking technology landscape.

 

Digital banking is projected to reach a USD13 trillion opportunity for banks by 2032[1]. With the launch of this partnership, audax and Thought Machine are positioned as key players in this expanding market. The partnership is centred on delivering innovative digital banking and BaaS solutions that meet consumers’ needs, at scale with faster speeds and lower costs.

 

The collaboration between audax and Thought Machine combines audax’s scalable digital banking platform that enables seamless API-based integration with partners and banks, with Thought Machine’s highly configurable cloud-native core banking platform, Vault Core, which enables financial institutions to offer fully customisable financial products for their end customers. This integrated solution significantly reduces the need for multiple vendors, streamlining the entire process.

 

The flexibility and scalability of the combined technologies allows incumbent banks and financial institutions to swiftly modernise their infrastructure and create new revenue streams by opening new business models that offer various financial products at scale.

 

audax and Thought Machine’s joint solution can also seamlessly integrate with a bank’s current infrastructure, enabling financial institutions to rapidly establish a new digital bank or offer BaaS at speed. The partnership, combined with ready components and extensive customer journeys, facilitates seamless plug-and-play experiences and eliminates the complexities of development and legacy system integration for swift market entry.

 

“audax understands that the future of financial services hinges on the strategic collaboration between technology solution providers to empower incumbent banks and financial institutions as they begin their journey to adapt to a rapidly evolving financial services landscape,” said Kelvin Tan, CEO of audax. “This joint solution provides customers with the ability to obtain hyper-customised offerings, and we look forward to delivering these robust end-to-end digital banking solutions that address the diverse needs and use cases and needs of various financial institutions.”

 

Randy McFarlane, global head of partnerships, Thought Machine, added, “Our collaboration with audax reduces the challenges of building a modern technology stack, providing a seamless, efficient, and scalable digital banking experience. By integrating both innovative technologies we are empowering banks and financial institutions to navigate the complexities of modern banking with confidence.”

 

audax Financial Technology

audax Financial Technology is a comprehensive digital banking technology solutions provider empowering banks and financial institutions to scale and modernise at speed. audax Financial Technology has enabled new business models and revenue streams for Standard Chartered under the SC nexus proposition, becoming the first global bank to provide Banking-as-a-Service in Asia.

For more information, please visit www.audax.io and follow audax on LinkedIn.

 

Thought Machine

Thought Machine has developed the foundations of modern banking with its cloud-native core banking and payments technology. Its cloud-native core banking platform, Vault Core, is trusted by leading banks and financial institutions worldwide, including Intesa Sanpaolo, ING Bank Slaski, Lloyds Banking Group, Standard Chartered, SEB, Lunar, Atom bank, Curve, and more.

Vault Core and Vault Payments have been written from scratch as entirely cloud-native technologies, giving banks full control to run any bank, product, and payment set to flourish in a rapidly changing world.

Thought Machine is a global team spread across offices in London, New York, Singapore, and Sydney and has raised more than $500m in funding.

For more information, visit thoughtmachine.net.

 

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[1] Digital Banking Market Size by Service (Global Market Insights, 2022)

Obsolete to Absolute, with Banking-as-a-Service

Posted on by Min Thu Ye

Whitepaper

Obsolete to Absolute

Discover Banking-as-a-Service (BaaS): From obsolete practices to absolute potential in tomorrow’s financial landscape

A $25 billion opportunity!

Banking-as-a-Service (BaaS) is revolutionising the financial services sector, reshaping how banks deliver financial products and services to consumers and businesses.

This whitepaper is specifically designed for incumbent banks considering BaaS. With BaaS as a business model, banks can partner non-bank entities and integrate banking capabilities, enabling these non-bank entities to offer financial services to their customers without the need to obtain a banking license or build their own banking infrastructure. This presents significant market opportunities to the entire ecosystem.

By 2026, Forbes reports that Embedded Finance is projected to reach USD7 trillion in transaction value and BaaS could evolve into a USD$25 billion opportunity for banks, underscoring its pivotal role in the ever-evolving financial landscape. This paper examines the key drivers fuelling the growth of BaaS, its impact and transformative potential on banks and non-bank entities, and its profound implications for consumers. Case studies will also illustrate the various BaaS implementations and offer valuable insights for banks interested in pursuing a BaaS strategy.

Banks looking to provide BaaS as a value proposition will find audax’s and Thought Machine’s solutions well-positioned to seize this unique opportunity and succeed in the new era of financial services.

Unpacking the whitepaper

  • What are the various digital banking models?
  • What is BaaS, Open Banking and Embedded Finance?
  • What do financial institutions stand to gain with BaaS?
  • What should you consider when selecting a BaaS provider?
  • How can you harness the benefits of BaaS with Thought Machine and audax?

Download our whitepaper

Ready to dive deep into the transformative world of BaaS?

Complete the form below to download the full whitepaper. Gain unparalleled insights, case studies, and strategies that will empower your bank to lead in the evolving financial landscape. Don’t miss out on harnessing the potential of BaaS for your institution. Get your exclusive whitepaper today.
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Embedded Finance: The Reality Check for Banks

Posted on by Min Thu Ye
Blog

Embedded Finance: The Reality Check for Banks

audax

26 October, 2023

Change. Every sector faces it, but in the financial world, the ace is relentless. As if staying ahead wasn’t challenging enough, the era of digital banking transformation for traditional banks is dawning, and it heralds the age of Embedded Finance. For Chief Technological Officers (CTOs) & Chief Investment Officers (CIOs), this isn’t just another buzzword – it’s a seismic shift with its own set of headaches.
Quote by Kelvin Tan

Kelvin Tan, CEO & Chief Dreamer of audax Financial Technology (previously Managing Director & Global Head of Standard Chartered nexus), hits the nail on the head: “Embedded finance is already giving the more forward-looking banks access to new revenue streams and to previously unbanked customers. People need to understand exactly how big an opportunity it is and get a move on. The first five to scale in this will corner the market.”

 

But we get it; transitioning isn’t easy. So, let’s break it down.

 

The Evolution of the Embedded Finance Proposition: Embedded finance was initially about straightforward, transaction-based services. But now? It’s evolved into an opportunity for digital banking transformation for traditional banks. We’re talking about DeFi, Web 3.0, and the benefits of partnering with fintech companies for comprehensive banking solutions. It can be daunting, but the upside is a redefined relationship banking and a closing of historical service gaps.

 

Embedded Finance Distribution is Verticalising: As the world of Software-as-a-Service (SaaS) undergoes change, so must embedded finance. With specialised platforms becoming data goldmines, this could be where a cloud-native banking platform for fintechs and banks shines. Platforms are already predicting lending trends. For traditional banks wondering, “How can Banking-as-a-Service (BaaS) help traditional banks offer more innovative financial products?” – the answer lies in embracing this shift or risk obsolescence.

 

Banks are Getting More Active: Higher interest rates might seem like a good thing, but they’re a double-edged sword. While boosting margins for some, they’re giving fintechs a competitive edge. By being able to have all your digital banking capabilities in a single platform, Kelvin suggests that this is a “land-grab moment.” Fortune is on the side of the bold, no matter the size of the institution. So for banks feeling overwhelmed, we’re here, equipped with white-label digital banking solutions & next-gen tech tools for you.

 

The Importance of Regulation Cannot be Overlooked: Let’s face it, regulations can be a migraine in the making. From keeping pace with open banking changes to the growing pressure on embedded finance platforms to streamline consumer interactions, it’s a tightrope walk. And with the marriage of technology and regulation (hello, cybersecurity!), the challenges amplify. Here’s a thought: What if regulations were machine-readable? It’s not a distant dream but a necessary evolution.

 

Embedded finance isn’t the future – it’s the here and now. And while it’s filled with its share of hurdles, it’s also ripe with opportunity. At audax, we’re not just bystanders; we’re in the trenches with you. Let’s navigate this evolving landscape together, empowering you to scale and modernise at speed with our digital banking capabilities, so that you can focus on your business.

 

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If you’re navigating the tumultuous waters of embedded finance now, we’ve got your back. Curious about what audax the only live full stack digital banking platform that has delivered BaaS in Asia, brings to the table? Take a tour here.

 

Or prefer a genuine chat about the challenges? We’re always up for a conversation, especially if it means helping you out. You can connect with us by filling up the “Get in touch” form & a member of our team will be in touch with you soon.

 

Before we conclude, a big shout-out to the team at aperture. They’ve done some fantastic legwork in chatting with the brightest minds in the finance world, distilling their wisdom into the indispensable report that we have taken reference from, “Embedded Finance Predictions: insights into a fast-evolving market.” Keen on diving deeper? Download the full report here.