Ohpen, the first fintech platform to bring a bank to the cloud, today announces its acquisition of cross-border loan and mortgages Software as a Service (SaaS) provider Davinci. The combination of these two growing companies will allow Ohpen to address the $300 billion global bank IT spending market as it targets international expansion.
This acquisition is testament to Ohpen’s commitment to disrupting banking by liberating financial institutions of burdensome legacy software. With the ongoing COVID-19 pandemic rapidly accelerating the shift to digital, the combined entity is set to change the face of finance forever.
The transaction is a pivotal moment for both companies. Easily integrated via a plug-and-play API, Ohpen will become the only cloud-native core banking engine to offer a full suite of products – across savings, investments, loans, mortgages and current accounts.
With 20+ top tier financial institutions as existing customers, Ohpen will support retail banks, asset managers, insurers, building societies, lending & mortgage specialists, online brokers and private banks to build new propositions and migrate complex legacy products into the cloud within a matter of weeks.
It also marks the beginning of Ohpen’s global growth ambitions. Its serverless microservices platform, leveraging shared Amazon Web Services (AWS) capabilities, is already set to support multiple countries seamlessly. Ohpen will focus first on scaling up across the Netherlands, United Kingdom and Belgium with development centres also in Spain and Slovakia, before entering into other markets.
The new entity, built on a foundation of decades of expertise, will have a combined headcount of 350 and $35 million revenue, making it the most serious challenger to legacy technology providers in the financial services sector.
Davinci is recognised for its machine learning and artificial intelligence capabilities, resulting in an unprecedented level of straight-through processing along with fast onboarding and acceptance during the loans and mortgages processes, resulting in cost savings of up to 80%.
This perfectly complements Ohpen’s robust core banking engine. Ohpen is already a market leader in the Netherlands, with Aegon and Volksbank amongst its clients. With a 25% increase to its R&D budget following the acquisition, the new Ohpen proposition and its future innovations are set to be transformative for the wider industry.
Matthijs Aler, CEO at Ohpen, commented: “Businesses like Ohpen and Davinci are the unsung heroes propelling the real shift to digital in the financial services industry. We are a growing company with huge ambitions. Together, we intend to lead the charge in directly challenging incumbent providers with outdated technology. Our mission is – and always has been – to set financial institutions free from legacy software. Now we can help a broader range of financial institutions deliver tangible change to meet the needs of tomorrow’s customers.”
“This is the natural next step on our shared journey to deliver the complete SaaS core banking offering of the future,” added Alwin van Dijk, Director at Davinci. “Our complementary business offerings, and combined company values based on a solid foundation of innovation – we are the only two players with a real focus on back and middle office innovation for new AND existing propositions. Now offering a full range of products – will be a market game changer. There are many opportunities, not only for present and future customers, but also for our experienced staff and we’re excited to see what the future holds.”