paybox migrates banking operations to Avaloq Core Platform

By Gloria Methri

Vienna-based paybox Bank, a subsidiary of A1 Telekom Austria, is migrating its operations to the Avaloq Core Platform to drive its expansion and to create a comprehensive suite of banking services. With the agreement, paybox can expand into any business area as a licensed online bank, with the ability to efficiently scale as its client base continues to grow.

paybox offers credit cards as well as payment solutions for private and corporate clients. The bank is now planning to expand its product range and to use EU passporting to grow in Germany and Southeast Europe.

With the Avaloq Core Platform, paybox can operate as an online bank in full compliance with regulations from Austria’s Financial Market Authority (FMA) and Germany’s Federal Financial Supervisory Authority (BaFin).

The core banking platform, implemented by Synpulse, will automate, and streamline the bank’s processes and workflows across the front, middle and back office. This ensures high straight through processing (STP) and service accuracy rates to enhance the efficiency of paybox’s operations and minimize payment reversals. The Avaloq Core Platform also offers flexibility and a fast time-to-market for new products and services, while facilitating seamless expansion into new markets.

Michael Wilhelm, Chief Operating Officer and Executive Board Member at paybox, said, “We are excited about our ambitious growth plans, which we are jointly developing with Avaloq and Synpulse. The Avaloq Core Platform will provide the necessary flexibility to enable us to expand into any client segment or business area in the future – and to quickly launch new solutions in response to market trends. We can rely on Avaloq’s expertise in banking to help us achieve our growth ambitions.”

Thomas Beck, Co-Chief Executive Officer at Avaloq, said, “Our core banking platform will form the backbone of paybox Bank’s operations, supporting fundamental processes such as client onboarding, payments, and settlement. This will provide a strong foundation on which paybox can develop further propositional capabilities to enable enhanced digital engagement and to help deliver on clients’ financial objectives. At Avaloq, we constantly screen the market to keep our clients compliant with evolving regulations – including those from FMA and BaFin. We are proud to partner with such an innovative bank and to help drive the ongoing digital transformation in finance.”