Digital banking app Monese is planning to ditch Thought Machine
Digital banking app Monese is planning to ditch Thought Machine as its core banking provider in favour of its in-house XYB platform by the end of the year. The news was revealed by Santosh Radhakrishnan and Bhavik Sanghvi, chief commercial officer and product director at Monese’s banking as a service subsidiary XYB, in an interview with Fintech Futures.
A Strategic Decision
According to Sanghvi, the decision to transition to the in-house platform was driven by Monese’s product strategy. They wanted to seize the opportunity to build their own platform with a no-code/low-code strategy. However, Sanghvi also mentioned that Monese’s partnership with Thought Machine will continue until December, and they are exploring potential opportunities to work together in other areas.
Adoption by a Tier 1 Bank
In the interview, Radhakrishnan and Sanghvi also revealed that XYB is currently being adopted by a Tier 1 bank. Although the name of the bank was not disclosed, this partnership signifies the growing confidence in XYB’s capabilities.
Thought Machine’s Response
Thought Machine expressed their support for Monese’s decision and stated that their partnership has been instrumental in Monese’s development of XYB. They remain committed to building market-leading core banking and payments technology.
Expansion of Monese’s Banking-as-a-Service Arm
Monese launched its banking-as-a-service arm in 2021, offering its own banking technology to other financial institutions. Last year, this arm was rebranded as XYB and set up as a subsidiary. This move is similar to Starling Bank’s creation of Engine for its banking-as-a-service work in 2022.
Ongoing Growth and Funding
Monese recently raised funding in September 2022, with HSBC leading a $35 million funding round. The company continues to attract investment and expand its services in the fintech industry.
Monese’s decision to switch from Thought Machine to its in-house XYB platform reflects their strategic vision and desire to have more control over their banking technology. With the adoption by a Tier 1 bank and ongoing funding, Monese’s XYB platform is poised for further growth and success in the digital banking landscape.