NatWest Group has entered into a strategic partnership with the Vodeno Group (comprising Vodeno Limited and its subsidiaries) which will see the creation of a Banking-as-a-Service (“BaaS”) business in the UK.

This strategic partnership will enable businesses to embed financial services products such as payments, deposits, point-of-sale credit and merchant cash advances directly into their ecosystems by leveraging the Vodeno Group’s BaaS technology, and NatWest Group’s banking technology and UK banking licenses.

Vodeno Group is a European BaaS provider which combines the Poland-based Vodeno Sp Z.o.o (“Vodeno TechCo”), a software company providing its API-based technology platform and the Belgium-based Aion Bank, which has a banking license covering a range of banking products, including loans, deposits and access to EEA payment systems. Vodeno Group is majority owned by Warburg Pincus.

James Dawson, partner in the Corporate team at Addleshaw Goddard, commenting on the strategic partnership said:

"The transformation of retail banking technology with this strategic partnership between NatWest Bank and Vodeno underlines the pace of change within retail banking and the increase in digitisation. With this partnership, NatWest Group, through its business banking app Mettle, assisted by the AG team, is building a standalone core banking and payments capability. Vodeno's Group’s platform will provide a channel for delivering these capabilities to BaaS clients in the UK."

Completion of the arrangements is subject to satisfying various conditions, including regulatory approvals.