Parabellum Investments, the family office of international growth investor Rami Cassis (pictured), has acquired French-British AI-based financial platform ABAKA through ieDigital.
The UK-based digital banking software leader is a portfolio company of Parabellum Investments.
ABAKA is an AI-driven recommendation engine platform which uses machine learning and behavioural segmentation to predict which products – such as savings accounts or retirement solutions – are the most likely to be bought by financial services consumers.
The acquisition by Cassis is ieDigital’s latest move in its aim to become the world’s largest provider of FinTech software to mid-tier banks and credit unions in the US & UK, adding a layer of intelligence to the company’s growing umbrella of products.
ABAKA utilises AI to analyse customer data and life stages to provide highly tailored recommendations for financial decision-making. It enables banks, credit unions and other personal finance providers to deliver on-demand hyper-personalised customer experiences and insights, which increases engagement and retention, and drives product upselling and cross-selling opportunities.
In October 2023, ieDigital added the US-based digital banking provider Connect FSS (Connect) to its portfolio, marking a significant expansion into the US credit union market. ABAKA will enhance the company’s offering as it enables banks and financial institutions to offer members and customers more tailored services and products.
ABAKA was founded in 2016 and is based in the UK, with offices in France and the UAE, and its clients include HSBC and Prudential.
“The acquisition of ABAKA marks the next step in solidifying ieDigital as the foremost provider of fintech software for mid-market financial institutions globally, following the acquisition of Connect in October,” said Rami Cassis, CEO of Parabellum Investments.
“Providing hyper-tailored services and products is crucial for financial institutions to stay ahead in an increasingly competitive landscape. ABAKA’s advanced AI capabilities, specifically designed for personalised financial insights, ensures ieDigital can continue to provide a more comprehensive suite of services and high-level solutions to meet the increased demand for customer-centric solutions.
“ABAKA uses various data points to better understand customers’ behavioural, social, financial and emotional state. It creates a far more personalized view of the customer and eliminates bias often associated with AI products.
“Fahd Rachidy and fellow co-founder Benoit Launay have built a strong business with sound fundamentals and exceptional technology. If it focuses its strategy in the right direction with the right team, it has the potential to be a truly game-changing player in the financial services sector.
“Parabellum Investments continues to seek acquisitions to grow its combined fintech and enterprise software platform. As a family office, we take a hands-on approach to growing businesses through our operational experience, and we set ourselves apart from other acquirers as we’re deploying our own capital and therefore making faster, more informed decisions.”
ABAKA, like Connect FSS, will be integrated with ieDigital under the leadership of CEO Jerry Young.