A major bank and an innovative financial technology platform are getting together to invest in fintech, a fancy name for financial technology companies. These are businesses largely centered around use of software for the delivery of financial services.
The new partners are Santander Bank, a large North American lender, and London-based Monitise, an innovator in so-called mobile money. That’s banking, paying and buying with a mobile device.
The two announced the new partnership recently saying that the intention was to invest in select projects.
Monitise says leading banks, payments companies, retailers, mobile networks and media owners use its technology platforms and services for secure financial transactions in both developed and emerging markets.
Meanwhile, Santander Bank is a wholly owned subsidiary of the Spanish Santander Group. The company is based in Boston, Massachusetts, and says it has more than $77 billion in assets and approximately 9,000 employees.
Monitise says the joint venture will be:
“The 50:50 joint venture will be aimed at investing in, building and scaling fintech businesses with the potential to redefine and support financial services globally … This includes access to Monitise’s new cloud-based platform which is designed to connect banks to digital innovation for their customers. Investee ventures will benefit from Santander’s and Monitise’s business know-how as well as access to Monitise’s design and delivery expertise.”
The joint venture involves setting up a fund to which each company inputs $15.6 million dollars. The goal is to invest in new fintech businesses that can support global financial services facing increasing competition from cheaper competitors entering the market.
Monitise began in 2003 when founder Alastair Lukies recognized the potential of using the mobile phone for more than simply a text or call. The company uses its technology to link banks and mobile operators, enabling consumers to manage their finances and make payments directly from their mobile devices at anytime and from anywhere.
Santander, with a principal market in the Northeastern United States, offers an array of financial services and products including retail banking, mortgages, corporate banking, cash management, credit card, capital markets, trust and wealth management, and insurance.
Sovereign Bank was rebranded as Santander Bank on Oct. 17, 2013.
Santander Bank Photo via Shutterstock