Neobank Volt has more IT providers than products, after signing a deal with Tata Consultancy Services to develop a “payments solution”.
Volt received its banking licence in January 2019 and kicked off with a high interest savings account, which is still in “beta” (restricted access).
The savings account is supported by a Temenos core banking system.
Recently, the bank notified customers that its “next big change will be focussed on spending”. It aims to have transaction products and payment services operating some time next year.
Transaction services will be supported by TCS’s payments solution, TCS BaNCS.
To complicate things a little more, last month Volt reported that it has contracted with Microsoft and LAB3 to develop a banking-as-a-service platform, with the aim of selling its banking services on a white label basis to other companies.
Volt chief executive Steve Weston did not respond to a request for interview but Tata Consultancy Services’ segment head, banking and financial services, Balaji Raghavan said it was not unusual for financial institutions, even ones as small as Volt, to work with a range of IT companies.
Raghavan said: “Fintechs are looking for the next gen capability. They often start as niche providers and many start with a single product.
“Once they get a grip on the competition, market trends, emerging technology and the regulatory environment, they diversify.
“It is quite normal in banking to have different core banking and payment gateway providers. Payments is a rapidly evolving area, with a lot of new technology and services, such as the NPP. Banks want to be sure they have the agility to keep up with those changes.”
Raghavan said Volt and TCS first made contact through TCS’s Co-innovation Network (COIN) program, a collaboration involving IT companies, venture capital firms, academic institutions and start-ups aimed at developing strategic alliances.
He said there was no confusion about the role of Volt’s various IT providers, although there could be some overlap. “The engagement with TCS is very clear. We will be developing Volt’s payments platform and then help it expand into new product areas.”