Digital bank Chetwood Financial has acquired its core banking provider Yobota to extend its banking-as-a-service capabilities.
Yobota was founded in 2016 as a separate entity to Chetwood Financial, and provides the core banking engine for the digital bank.
Chetwood says the acquisition will create a more collaborative BaaS proposition for non-financial service providers, combining the bank's credit and pricing capabilities alongside Yobota's core tech platform.
The transaction sees the departure of Yobota CEO and founder Ammar Akhtar, who is stepping down to pursue new challenges after almost six years. The company will be run by the existing Yobota management team and will continue to operate as a separate brand under the Chetwood umbrella.
Andy Mielczarek, CEO and founder of Chetwood says: “Chetwood and Yobota have common shareholders and shared purpose, and there is pre-established trust from knowing and working together. The acquisition is set to bring greater value to investors as well as strengthen our existing BaaS proposition, helping clients create better end-to-end journeys for their customers by handling both the regulatory and technological complexities involved in embedding financial services into existing propositions."