Introduction
Monese, the digital banking app, has announced plans to move away from Thought Machine as its core banking provider and transition to its in-house XYB platform by the end of the year. This decision was shared by Santosh Radhakrishnan and Bhavik Sanghvi, the chief commercial officer and product director of Monese’s banking-as-a-service subsidiary XYB, in an interview with Fintech Futures.
Reasons for the Transition
According to Sanghvi, the decision to bring the banking platform in-house was driven by Monese’s product strategy, allowing them to build it themselves using a no-code/low-code approach. Despite the transition, Monese’s partnership with Thought Machine will continue until December, and both companies are exploring opportunities for future collaborations.
XYB Adoption by Tier 1 Bank
Sanghvi and Radhakrishnan also revealed in the interview that XYB is currently being adopted by a Tier 1 bank. Although the bank’s name was not disclosed, it signifies the growing recognition and acceptance of XYB in the industry.
The Rise of XYB
In 2021, Monese introduced its banking-as-a-service arm as part of its Series C funding round, offering Monese’s own banking technology to other financial institutions. This arm was later rebranded as XYB and established as a separate subsidiary, following a similar approach taken by Starling Bank with its creation of Engine in 2022.
Recent Funding and Future Plans
Monese secured its most recent funding in September 2022, led by HSBC via its Ventures arm with a $35m investment. The company aims to continue expanding its banking-as-a-service offerings and is committed to providing its cutting-edge technology to major financial institutions.
Contacting Monese and Thought Machine
AltFi has reached out to Monese and Thought Machine for further comments on the transition.
