Silicon Valley-based, digital banking core and Banking as a Service (BaaS) provider Mbanq has reached profitability as it celebrates its third anniversary.
With 150 employees, Mbanq is one of the fastest growing and most comprehensive BaaS providers in the world and is a breakthrough leader in the development of a new generation of digital banking solutions.
Vlad Lounegov, Mbanq’s CEO, reports: “Mbanq’s advanced core is running as the basis of 15 banks. A further 10 banks are in the process of either contracting or setting up Mbanq’s solution. This speed of client acquisition is expected to drive growth in Mbanq’s 2019 projected revenue to achieve a 300% increase over 2018.”
Lars Rottweiler, Mbanq’s CTO, says: “Mbanq has experienced rapid success because banks and FinTechs are natural partners. Today’s banking customers need instant, on-demand financial services everywhere they go. At the same time, banks need to keep adapting to a rigorous and fast-changing compliance landscape. To meet these challenges it is essential that a bank operates on a modern and highly-adaptable banking core.”
State of the market
Mbanq’s success is driven not only by its robust and forward-looking technology, but also by market need. Currently, about 96% of US financial institutions run on legacy core technology which is supplied by an oligopoly of just a handful of vendors.
A huge proportion of banks still use core software that was developed in the 1990s or even earlier. Any advances, such as mobile banking apps or compliance with new regulations, such as GDPR, must be built on top of the original core. This creates an unwieldy IT structure that becomes layered to the point of bursting.
“The banking core market in the U.S., as well as globally, is outdated and long overdo for modernization. Mbanq’s core competes favorably with the antiquated systems currently clogging up the market, and Mbanq is in prime position to further capitalize on this modernization process,” Lounegov adds.
Mbanq uses its own unified digital core to create and operate banks for clients
Mbanq has created a digital core and BaaS solution that covers the entire range of banking products for retail and corporate clients. Mbanq’s solution provides everything needed to create and operate a digital bank of any size, including features such as:
– Full channel architecture, including personalized mobile and web app for customers
– Complete back end functionality, including accounting, treasury and reporting
– Cloud-based and on-premise deployments
– API and FinTech enablement
– Full regulatory compliance
What is core banking?
Core banking software is the essential basis of any bank. It is the brain that banks use to operate every process that exists in the bank, such as opening a bank account or performing a payment, and booking all financial transactions on the ledger. Every transaction and every customer interaction must pass through the core and this data must be properly booked to the correct user, bank account and general ledger for a bank to function.