Financial institutions are frequently challenged by the complexities of integrating new technologies while maintaining operational efficiency. Many banks and credit unions struggle with connecting multiple systems, which can slow digital initiatives. To address these issues, nCino has completed its acquisition of Sandbox Banking, an Integration-Platform-as-a-Service (iPaaS) provider. This purchase is expected to simplify data connectivity and enhance banking operations by addressing integration bottlenecks. The move reflects a broader trend in the financial sector, where institutions seek to modernize legacy infrastructure to meet growing digital demands.
Preceding the acquisition, nCino and Sandbox Banking had collaborated for several years. nCino had previously acquired FullCircl to improve its onboarding solutions for financial institutions across Europe, the Middle East, and Africa. These acquisitions indicate nCino’s continued focus on expanding its capabilities through strategic partnerships. Over recent years, the financial sector has seen increased investment in digital transformation, with institutions aiming to offer seamless services through enhanced technology adoption.
How Will the Acquisition Impact Financial Institutions?
With Sandbox Banking’s integration technology, nCino aims to provide an enhanced data connection hub for financial institutions. This will allow banks and credit unions to unify their core systems with external applications more efficiently. The acquisition is expected to help financial entities eliminate redundant processes and ensure smoother interoperability across platforms. By integrating third-party systems and artificial intelligence, institutions may be able to modernize their operations without encountering significant disruptions.
nCino highlighted the frequent need for financial institutions to establish new system connections to support emerging products and workflows. However, integration challenges have often hindered progress.
“Financial institutions frequently build new connections to support emerging products, user workflows, or external systems, but digital transformation is often slowed by time-consuming and costly integration challenges,”
the company stated. The acquisition is intended to streamline such processes by offering a centralized integration platform.
What Are the Strategic Goals Behind This Acquisition?
One of the main objectives of the acquisition is to enhance operational efficiency and regulatory compliance for banks and credit unions. nCino’s chief product officer, Chris Gufford, commented on the significance of this move, emphasizing the need for a flexible data environment.
“This acquisition gives nCino a better ability to empower these institutions with a flexible, reliable data environment for greater agility to quickly integrate third party systems, AI and new technologies without disruptions,”
Gufford said. This suggests nCino is looking to position itself as a key player in the financial technology sector by addressing long-standing integration challenges.
Financial institutions have increasingly prioritized improving digital operations, particularly as consumer demand for digital banking rises. Industry experts have pointed out that traditional banks often face difficulties in adopting new technology due to legacy systems. James Butland, vice president of payments and U.K. managing director at Mangopay, noted that banks have historically struggled to keep pace with technological advancements.
“The challenge that a traditional bank has, is that they sit on 150, 200 years of legacy infrastructure and probably 60 years of legacy technology. So, banks have found it difficult to innovate quickly,”
he explained. This suggests that solutions like the one nCino is offering could address a critical need within the industry.
The acquisition of Sandbox Banking aligns with the broader digital banking transformation occurring across the financial sector. Many institutions are seeking new ways to enhance customer experiences without overhauling their entire infrastructure. By facilitating faster and more efficient integrations, nCino’s latest move could help financial entities accelerate their digital initiatives. Additionally, as regulatory requirements evolve, banks will need advanced solutions to maintain compliance while adopting new technologies. This acquisition indicates that financial technology providers are becoming key enablers in this ongoing shift.
