Afterpay has announced plans to launch savings and transaction accounts next year, using Westpac’s new bank-as-a-service platform.

The platform, which was built by 10x Future Technologies, positions the bank for what it sees as growing demand for white label banking services.

Under the agreement, deposits taken by Afterpay will be held on Westpac’s balance sheet. Rates, product features and terms and conditions will be the bank’s responsibility.

The platform is an updated version of the types of agency arrangements banks have offered for a long time, but there are important differences.

Where in the past banks might have offered clearing and settlement services to a credit union, for example, a modern bank-as-a-service platform allows them to offer a wide range of products and services.

In addition to savings and transaction accounts, Westpac said it would be developing “cash flow management tools” for Afterpay. These will include services that usually come under the heading of personal financial management.

And an all-digital cloud-hosted service can provide services at much lower cost than legacy systems. That will help the bank’s margin.

Westpac’s offering will only be available to Afterpay’s Australian customers. However, Afterpay said it has plans to introduce “platform enhancements” in all regions.

Whether it will do that in partnership with Westpac is not clear.

10x Future Technologies was founded by former Barclays chief executive Anthony Jenkins. Westpac has equity in the business.

The bank is betting that there will be a big change in the delivery of banking services, giving established banks a major opportunity to provide services on a wholesale basis.

If it is right the neobanks might have most to lose.