Westpac signs SocietyOne up to digital banking-as-a-service

Westpac has signed peer-to-peer lender SocietyOne on as the second user of its digital banking-as-a-service platform.

The platform is built on UK-based 10x Future Technologies‘ core banking stack, which allows Westpac to offer white-labelled banking products to third parties.

The major bank is seeking to broaden its customer base under the joint venture, expanding lending opportunities and growing deposits.

Afterpay was first to sign on to the digital banking-as-a-service platform last year, and SocietyOne is now the second.

SocietyOne customers can expect digital banking services offerings in the second half of 2021.

The fintech, which connects investors with loan applicants, plans to launch a transaction account to its 75,000 customers, which will be accessible via an app.

SocietyOne has already originated $1 billion in loans and is now seeking to potentially list on the ASX.   

“Customers will be able to access their credit score for free, apply for a SocietyOne loan and manage their existing loans, as well as deposit, withdraw, and transfer money from and within the new transaction account powered by Westpac’s digital platform,” SocietyOne CEO Mark Jones said.

“This move forms part of our long-term strategy to build a range of financial products that will help empower and educate our customers and assist them to achieve their goals faster.”

Westpac’s general manager for corporate and business development, Macgregor Duncan added the new partnership is a response to consumers “looking for new and different ways to do their banking”   

“By partnering with established brands and leveraging our combined data resources, we can provide better, more personal experiences for customers,” Duncan said.

SocietyOne lists its shareholders as including News Corp, Seven West Media, Australian Capital Equity, Consolidated Press Holdings, EISS Super, G&C Mutual Bank and Reinventure Group.

Reinventure Group, which is Westpac’s venture capital arm, has been an investor in SocietyOne since February 2014.