Temenos, a Swiss-based banking software company, announced that its Banking Cloud platform has been selected to power M1 Finance‘s Invest, Borrow and Spend products on its Super App, according to a press release.
The partnership means that Temenos’ tech will be integrated to power M1 Finance’s existing checking accounts (M1 Spend), investment accounts (M1 Invest) and portfolio credit lines (M1) borrow. It also means M1 Finance will now lean on Temenos’ cloud technology to initiate new product launches and scale as it continues to grow its Super App.
M1 has more than doubled its client base and quintupled its assets under management to $5 billion over the past 18 months, according to the release. Now the Super App provider looks to move into the banking industry and is planning large scaling efforts, prompting the decision to partner with Temenos.
M1 founder and CEO Brian Barnes also recently purchased The First National Bank of Buhl, one of the smallest US chartered banks. While its count of deposits is only $29.4 million, according to S&P Global Market Intelligence, the bank’s federal banking charter makes it far more valuable than the sum of its coffers.
As Barnes and M1 look to add banking services to the Super App, this purchase adds incredible potential at a time when hopeful neobanks are failing to secure banking licenses.
“We believe that our clients should have total choice, control and transparency over how they achieve their personal and financial goals,” Barnes stated in the release.
“To fulfill this promise, we need technology that is fast, open and scalable as we continue to grow our products and client base. This partnership will help us build a stronger, faster, more secure technology stack that makes our clients’ experience on M1 even better. Temenos’ open cloud banking platform will enable us to support massive growth and make wealth creation accessible to every American,” he said.
Temenos’ open cloud banking platform will now serve as the foundation for M1’s banking services as they launch, with Temenos’ pre-configurations for transactions and payments allowing the Super App to quickly roll out new products and features.
In other recent fintech news, dLocal released three new fraud management tools and expanded its services to three new countries including El Salvador, Thailand and Guatemala. Extend also is expanding its digital payment card tech following a $40 million Series B led by March Capital.