Engagement banking vendor Backbase has acquired UK-based digital wealth platform Nucoro. Financial terms of the deal were not disclosed.
Backbase says the deal will see it incorporate Nucoro’s headless platform capabilities directly into the its platform, enabling customers to launch digital end-to-end investment offerings, such as robo-advisory, trading, or hybrid advisory services.
The two firms are well acquainted, with Nucoro spending the last three years as part of the Backbase fintech partner ecosystem, resulting in several collaborations.
Explaining the rationale for the deal, Backbase CEO Jouk Pleiter says: "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. With these services, they can generate extra revenue and expand their share of wallet with their most valuable customers."
Founded in 2003, Amsterdam-headquartered Backbase finally took its first private equity investment last year at a €2.5 billion valuation. Nucoro also secured funds last year, when Abrdn made an undisclosed investment. Abrdn had initially planned to buy Nucoro unit Exo Investing.