Barclays joins bank rivals in buying stake in United Fintech
It has bought two fintechs this year, bringing its total to seven and giving it more than 200 employees across 11 locations globally
[LONDON] Barclays is buying a stake in a British-Danish fintech company specialising in banking technology, joining an investor group that includes four of its largest European and US rivals.
The London-based lender will pay an undisclosed sum for new shares issued by United Fintech, a statement announced on Wednesday (Dec 10). It will also hold a board seat in the startup.
United Fintech specialises in acquiring technology firms serving the financial industry, and integrating their solutions into its platform to meet the needs of bank clients.
The company has bought two fintechs this year, bringing its total to seven and giving it more than 200 employees across 11 locations globally. It is headquartered in London, with a significant presence in Copenhagen.
Barclays will be the fifth bank to invest in United Fintech after BNP Paribas, Citigroup, Standard Chartered and Danske Bank have bought stakes over the past two years.
Christian Frahm, the founder of United Fintech, said the investment by Barclays will go directly into the business to fuel further investments, including companies that focus on solutions using artificial intelligence (AI).
“Large institutions increasingly struggle to onboard new AI-native technologies directly,” he said.
The company expects to add more banks to its owner group in “the short-to-medium term”, said Frahm, who is a former executive at Saxo Bank. BLOOMBERG
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