Westpac Partners with 10x Future Technologies to Build BaaS Platform
On November 4, 2019, Westpac announced a partnership with UK-based 10x Future Technologies to build a new standalone banking-as-a-service (BaaS) platform. The announcement was made during Westpac's full-year results presentation. The platform will allow Westpac's institutional customers and fintech partners to distribute Westpac banking products through embedded finance capabilities.
As part of the deal, Westpac plans to make a minority equity investment in 10x. The bank aims to create a modern core banking platform that extends its capabilities beyond its core business. Long-term, Westpac envisions potentially integrating the platform to gain cost and flexibility benefits. 10x's general manager highlighted the platform's potential for new data and AI applications while lowering operational costs.
- Signals major Australian bank commitment to BaaS model, potentially reshaping APAC embedded finance landscape
- Validates 10x Future Technologies' cloud-native core banking platform for large-scale institutional BaaS deployments
- Could intensify competition among incumbent banks to offer platform-based banking services to fintechs