Today Japanese technology firm NEC announced the acquisition of Swiss FinTech Avaloq Group for $2.2 billion. The company provides banking technology, particularly wealth management services to numerous major banks, including crypto-asset management services, and its tech is responsible for the asset management of more than $4.9 trillion. Avaloq will help strengthen NEC’s digital financial software position, supporting the firm’s blockchain and technology solutions. But NEC also said it would help to strengthen the Japanese firm’s business in the digital government field.
President and CEO of NEC, Takashi Niino, said: “NEC will be placing great importance on building long-term relationships with Avaloq and its customers, and aims to create new solutions that combine Avaloq’s software with NEC’s cutting-edge technologies.” NEC’s AI technology brand ‘NEC the WISE‘ and its blockchain solution were some of the technologies mentioned.
This acquisition comes when the financial industry increasingly seeks to incorporate technologies like distributed ledger (DLT) and blockchain as part of their digital transformation (DX) strategies. DX is an area where Avaloq positions itself. Digitalization has also been accelerated due to the pandemic. Apart from the apparent increase in NEC’s financial services footprint, the government rationale is that governments are collaborating with the financial sector to incorporate digital identities and tokens.
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