Backbase, a global engagement banking software provider, has made a foray into the digital wealth space with the acquisition of London-based firm Nucoro.
The acquisition will allow Backbase to integrate Nucoro’s headless platform capabilities directly into the Backbase Engagement Banking platform, providing a unified, customer-centric platform designed to expedite digital transformation within banks, the company said in a Thursday (June 15) press release.
According to data provided in the release, the wealth management platform market has grown significantly, surpassing the $3 billion mark in 2022, with analysts predicting a 10% compound annual growth rate (CAGR) in the next decade.
“We see a trend where retail banks want to quickly launch differentiating investment propositions to complement their daily banking services. Think of capabilities like enhanced savings, pension products, stock trading, and portfolio management, said Jouk Pleiter, founder and CEO at Amsterdam-based Backbase.
Pleiter added that the potential of the “combined platform to provide instant end-to-end value for both retail and private banks” is huge, especially for private banks and wealth management firms that are increasingly looking to “modernize their legacy point solutions and hollow out their bespoke core systems.”
Both Backbase and Nucoro platforms are based on open industry standards and share a microservice-based architecture.
Other banks and neobanks have extended themselves into the wealth management space. In February, Wells Fargo announced plans to launch a digital platform offering clients tools for wealth management. The new LifeSync, available to select clients of the bank’s Wealth and Investment Management (WIM) division, will provide real-time progress on goals, track key financial metrics, deliver relevant content and provide a connection to a financial adviser.
In December, the Green Dot banking platform extended its partnership with wealth management provider Wealthfront. The two companies said in press release that they have extended their partnership begun in 2020 in which Green Dot provides seamless checking features and money movement for Wealthfront’s Cash Account.
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