Core banking technology firm Ohpen has sold the consulting wing of its recently acquired Davinci Group to Yellowtail Conclusion.
Ohpen originally acquired Davinci Group in September 2020. At the time, the vendor called it a first step in a “global expansion”.
Ohpen signed the deal to address a market of banks’ IT spend it claims is worth $300 billion.
Davinci provides mortgages and loan software with “machine learning and artificial intelligence capabilities”. The firm claims it can create cost savings of up to 80%.
Both Ohpen and Davinci operate on cloud services provided by Amazon Web Services (AWS).
Yellowtail describes itself as a firm that builds and manages digital and data-driven software for financial services. It is acquiring 100% of Davinci Consulting for an undisclosed sum.
“When acquiring Davinci Group we evaluated the options available for its consulting activities,” says Matthias Aler, CEO of Ohpen.
“Ohpen is first and foremost a Software-as-a-Service company. We believe that focus is paramount if we are to fulfil our mission of freeing financial institutions from legacy systems and processes.
“The sale of Davinci Consulting allows us to continue that focus. This is a great fit for both [Davinci and Yellowtail].”
Last September Aler told FinTech Futures that Ohpen has a four-step plan for the next two years. The first two revolve around building out the integrated core with Davinci and expanding in the UK and Belgium.
The next two are an expanded microservices platform and launches in new markets. Targeted countries include Germany, Spain, Australia, Canada, and the US.
Ohpen works with both incumbent and challenger banks. It started out eleven years ago focusing on savings solutions and working with more traditional players. It has since pivoted to serve clients looking to focus on current accounts.