Italian banking giant UniCredit has announced a significant move into the digital banking space with the acquisition of Belgian digital bank Aion Bank and cloud banking technology provider Vodeno.

The deal, valued at approximately €370 million, marks one of the first instances of a major bank acquiring full ownership of a new technology platform without relying on third-party core banking providers.

The acquisition brings together Aion Bank's European Central Bank licence and Vodeno's innovative cloud-based platform, enabling UniCredit to offer comprehensive Banking-as-a-Service (BaaS) solutions across Europe. The Vodeno Cloud Platform, described as a state-of-the-art, cloud-native core banking system, utilises smart contracts technology and API integration.

Andrea Orcel, chief executive officer of UniCredit, highlighted the strategic importance of the deal, stating, "This investment enables us to leverage Vodeno's technology and talent to further develop their proprietary technology using it as a sandbox to develop, test and innovate for the benefit of our broader group."

The acquisition brings 200 engineers, developers, and data scientists into the UniCredit fold, significantly enhancing the bank's technological capabilities. This move is expected to provide UniCredit with a competitive edge in digital banking, particularly in serving high-value segments such as affluent clients and SMEs.

UniCredit aims to use this new technology stack to expand into targeted client segments and markets across Europe more efficiently. The bank also plans to bolster its embedded finance offerings, providing new services to marketplaces, e-commerce platforms, and retailers.

The transaction is expected to close in the fourth quarter of 2024, subject to regulatory approvals. UniCredit anticipates a minimal impact on its consolidated CET1 ratio, with an expected decrease of around 15 basis points at closing.

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