Banking-as-a-Service (BaaS) FinTeach company Mbanq has inked a contract with banking technology company Temenos to offer a Credit Union-as-a Service (CUaaS) offering for U.S. credit unions, according to a Monday (Oct. 11) press release. The goal of the joint offering is to spur BaaS use throughout the U.S., according to the announcement.
Powered by the Temenos banking cloud, the CUaaS is aimed at helping the more than 5,000 U.S. credit unions expedite their digital transformation, and offer digital financial services and meaningful customer experiences to credit union members. It integrates modern digital financial technology with all-inclusive operations, legal compliance and financial services solutions.
“Powered by The Temenos Banking Cloud, Mbanq takes to market a Credit Union-as-a-Service offering that automates every operational requirement a modern Credit Union needs,” Mbanq CEO Vlad Lounegov said. “This game-changing partnership will drive our company’s growth and help regulated and unregulated entities transform their offerings, technology and customer experiences in the digital post-pandemic world.”
Monday’s announcement comes on the heels of Mbanq’s announcement last month that it had launched a Credit Union-as-a-Service business model. Like the CUaaS offered through Temenos, the initial CUaaS offers customers a coordinated package of technology, operations, legal compliance and financial services solutions within a single credit union space.
The advancements come at a time when, according to a recent PYMNTS survey, most credit unions are stepping up their digital offerings.
The survey found that roughly two out of three credit union executives agree that they will need to build out their digital offerings to stay “economically viable” by 2023.
The pandemic has brought the largest push to digital services,. Before the pandemic, two-thirds of consumers said they were more comfortable making cash withdrawals or depositing checks inside branches, as opposed to doing so online. Today, as many as 70% of deposits at surveyed financial institutions are being conducted using self-service options instead of with help from tellers.