Global banking software provider Backbase has acquired UK-based digital wealth platform Nucoro for an undisclosed sum.
The acquisition will allow Backbase to incorporate Nucoro’s platform capabilities directly into the Backbase Engagement Banking platform, enabling its customers to launch digital end-to-end investment offerings, such as robo-advisory, trading, or hybrid advisory services.
Backbase said that the wealth management platform market eclipsed $3bn (£2.37bn, €2.77bn) in 2022 with analysts predicting a 10% compound annual growth rate in the next decade.
Jouk Pleiter, founder and chief executive of Backbase, said. “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.
“For private banks and wealth management firms, we see a growing demand to modernise their legacy point solutions and hollow out their bespoke core systems. I’m super excited about the potential of this powerful combined platform to provide instant end-to-end value for both retail and private banks.”
Lennart Asshoff, Nucoro co-founder and chief executive, added: “Backbase is an ideal partner to bring the next generation of wealth infrastructure to financial institutions around the world. As a trusted innovation partner to financial institutions, Backbase offers us the reach and technical expertise to take our vision further.”