News and resources on cloud strategy, selection, build, migration and operation for banks and fintechs.
Westpac appoints first BaaS chief

Westpac appoints first BaaS chief

Westpac has appointed Damien MacRae as its first BaaS chief executive, overseeing the Australian lender's efforts to deepen its relationship with non-bank partners looking to embed banking services.

MacRae, a Westpac veteran who recently returned after a stint away from the bank, will begin his new role in April, alongside his current position as MD of Pacific Bank and Specialist Finance.

The two-year old banking-as-a-service business uses a cloud-native banking platform built from the ground up in partnership with UK-based provider 10x and integrating more than 30 different technology services.

Says MacRae in a company blog: "Banking is increasingly becoming embedded in platforms and apps of non-bank businesses.

"Those non-bank businesses recognise that banking is an incredibly capital and regulatory intensive business, which is something they don’t wish to explore - but it's core to Westpac and that’s what we’re leveraging through banking as a service."

Block-owned BNPL giant Afterpay recently launched its spending and savings accounts on the platform, while digital lender SocietyOne is preparing to come onboard. MacRae says others are set to follow within months.

"We're having conversations with a range of businesses about the platform’s capabilities and how it can help them - companies from a cross section of industries, with large customer bases, predominantly within that millennial demographic market," MacRae says.

Meanwhile, in addition to transaction bank accounts, a digital mortgage proposition is set to be added later this year, along with other products and services.

Comments: (1)

Andrew Smith
Andrew Smith - RTGS & ClearBank - London 04 March, 2022, 16:10Be the first to give this comment the thumbs up 0 likes

This is great news and shows the growth of true BaaS capabilities globally. BaaS is still a long way off of where it should be in terms of wider market adoption, but financial services moves slowly. I have no doubt we will start to see large incumbents becoming dependent on some BaaS capabilities to help ease operational burden, and therefore reduce their operational costs. 

As it was back in 2014 when Nick Ogden and myself penned out BaaS and the ClearBank offering, BaaS is the most exciting opportunity in banking