Bankable has acquired Arex Markets, a Barcelona-based embedded finance startup. Arex embedded finance products can be white-labelled by neobanks, enterprise resource planning software and accounting software.
The deal gives the combined company the ability to embed credit and working capital into the payment flows of established neobanks, multinational brands and fintech platforms. Arex Markets’ proprietary technology enables investors to finance a variety of commercial papers. The aim is to speed up payment flows seamlessly and ease the working capital challenge.
Go deeper with GlobalData
BaaS and embedded finance sectors continue to grow amid gloomy economic conditions
While embedded finance and BaaS grows strongly, the B2B finance space struggles with quick and flexible access to liquidity solutions. At the same time, investors continue to search for the right balance between risk and yield.
According to Bankable, the legacy banking system has not been able to provide the ability to offer credit and working capital solutions which can be embedded in transactional flows as diverse as accounts payable, invoicing, cards issuing and cross border supplier payments. This forces businesses to consider alternative private financiers or carry additional costs on their balance sheet.
Bankable will add working capital to its existing API-first digital platform. This includes flexible invoice financing, corporate credit cards, lodged cards and revolving credit. As a result, customers will have the ability to build cards, payments, and credit solutions on top of the Bankable virtual account core in minutes.
Bankable proposition: unlimited working capital matched with extensive portfolio of customers
Through extensive investor partnerships, Bankable can offer unlimited working capital matched with an extensive portfolio of relevant customers. Early use cases for the combined offering are being rolled out. This includes the B2B wholesale travel sector for working capital support on supplier payments. Other examples include supporting pan-European scale-up fintechs and neo-banks to build net new revenues from credit cards. And working with global consumer brands to establish a single payments solution tailored to their needs.
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By GlobalDataBankable says that core to its approach is working as a friend to the established banking industry. It is working closely with several tier 1 institutions to welcome them as new investors on to the platform. The result is the ability to provide them with an additional route to deploy capital quickly and flexibly.
Eric Mouilleron, CEO & founder of Bankable: “Together with Arex Markets, we share the same entrepreneurial culture and ambition. Thanks to our complementary assets and strong alignment of our teams, we can attract premium clients seeking to develop a uniform pan-European banking offer leveraging our best-in-class API platform including credit. This partnership clearly sets us up with the richest BaaS offer for premium clients with clear multi-country ambitions.”
BaaS offering that is modular and easy to integrate
Airto Vienola, CEO of Arex Markets, added: “Bankable and Arex share the same mission. That is to offer embedded financial services across Europe to fintechs, established businesses and brands. Together with Bankable, we offer both a formidable infrastructure powered by the best technology. This gives access to banking-related services that are modular and easy to integrate. And the deepest product breadth in the Bank-as-a-Service European market, covering accounts, cards and credit.”
Series A backers include LocalGlobe, Lifeline Ventures and Mosaic Ventures and will continue on as investors in Bankable. Last December, Arex sold its Finnish arm to Svea Bank to focus on its UK and Spanish operations.
