In the dynamic landscape of digital finance, audax stands out as a B2B platform with a mission to empower banks and financial institutions in their digital transformation journey.

At the heart of its offering are two pivotal use cases: digital banking and banking-as-a-service (BaaS).

“In recent years, it’s only become more evident than ever that digital transformation is no longer a luxury for traditional institutions. Today, banks are no longer competing against fellow financial institutions but also challenger banks, neobanks, and fintech [companies] in verticals spanning e-wallets to digital payments. In many ways, everyone is now playing in the same digital financial services sandbox,” explains audax CEO Kelvin Tan in an email interview with e27.

What sets audax apart is the provision of a comprehensive plug-and-play digital platform, offering a full retail digital banking stack. This all-encompassing solution covers front-end channels, security, identity management, and back-end reporting functionalities, presenting a breadth unmatched by competitors. Its key differentiating attributes lie in the comprehensiveness of its platform, allowing clients to swiftly go to market without piecing together various solutions.

The team behind audax distinguishes itself not only by technical expertise but also by leadership with a track record of implementing a functional BaaS business model. This wealth of experience positions audax to guide customers in exploring Embedded Finance (EmFi) for exponential growth in the digital age.

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audax’s roots trace back to the conceptualisation of Standard Chartered nexus (SC nexus), a white-label plug-and-play BaaS offering. The idea originated from the need for traditional banks to grow their retail and SME segments without significant upfront investments.

Developed within the bank’s ecosystem with the support of SC Ventures, SC nexus eventually became the earliest global bank to provide BaaS in Asia. As the landscape evolves, audax emerges as a solution that offers a plug-and-play infrastructure to modernise tech stacks without incurring technical debt or costly overhauls, all while ensuring compliance by design.

Empowering banks into a new era

When asked about their customer acquisition strategy, Tan answers that the company uses a multifaceted one, built on a nuanced approach that combines strategic relationship-building with an in-depth understanding of the traditional finance landscape.

“A crucial element of our strategy lies in the successful collaboration with institutions like Standard Chartered, showcasing our proven track record and providing a solid reference for incumbent banks considering investments in digital solutions. These successes demonstrate our capabilities and establish a solid foundation for incumbent banks considering investments in digital banking technologies,” he says.

audax also tries to proactively harness strategic partnerships with complementary organisations to extend its reach.

“We also understand the importance of offering a comprehensive solution to our clients by collaborating with complementary solution providers to present a holistic solution. This strengthens our value proposition and positions us as a trusted and versatile partner in the eyes of financial institutions seeking a more comprehensive approach to digital transformation. Working closely with these experienced partners ensures a more streamlined and effective user acquisition process, facilitating connections with a broader network of institutions eager to embrace technological advancements in banking,” Tan explains.

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What important lesson can audax share about its target audience today? Tan explains that in the current financial landscape, banks are grappling with a confluence of pressures and motivations that underscore the urgency of incorporating BaaS into their digital transformation strategy. This is a situation where both banks and fintech companies play a role.

“For traditional banks, the prospect of an estimated US$1.3 trillion global banking revenue growth between 2021 and 2025 is a compelling motivator. However, achieving this growth requires a strategic response to the changing dynamics of customer expectations. There is a palpable shift in customer demands, with an increasing appetite for seamless, digital-first experiences. This change in mindset is further underscored by the evolving role of fintechs,” he says.

“Initially disruptors that posed a threat to traditional banking models, fintechs have transformed into enablers. Rather than eating into banks’ market share, fintech companies are now sought after as partners or acquisition targets by banks looking to expand their offerings and enter new markets. Banks are also navigating the challenges the demand for rapid technological innovation poses. The need for tech and core modernisation has become imperative.”

This is especially true as bank customers are becoming more demanding, and fintech companies have found themselves reliant on BaaS as the only means to offer customers EmFi.

“With a myriad of fintechs emerging, these entities require banking partners to facilitate access to essential services such as bank accounts, payments, and lending. Notably, the regulatory barriers to becoming full-fledged banks are high, making collaboration with traditional banks a strategic necessity for fintechs.”

Coming up next

In a strategic move that underscores audax’s commitment to growth and innovation, the company, incubated within Standard Chartered Bank’s ecosystem via SC Ventures, is gearing up for substantial expansion in 2024.

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With Standard Chartered Bank serving as an investor, audax is poised to embark on subsequent funding rounds to refine its existing tech stack, enter new markets, and tap into diverse client segments. The company, which has approximately 180 employees worldwide, particularly targets Southeast Asia (SEA) and Middle East regions for increased presence and talent acquisition.

audax has already made significant strides in powering Standard Chartered’s successful BaaS partnerships, notably with Indonesian e-commerce giants such as Bukalapak and Sociolla.

In 2024, audax aims to begin the introduction of a public sandbox environment for controlled exploration and experimentation. It also aims to streamline reporting processes and expand offerings, such as seamless integration with third-party card processors.

“This adaptability ensures a wide-reaching applicability across diverse banking infrastructures.”

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Image Credit: audax

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