Fintech umbrella and acquisition firm United Fintech has announced that leading global banks BNP Paribas and Citi (NYSE:C) have become the first institutional investors in the company, a neutral Digital Transformation platform, as part of a strategic investment round led by Citi. United Fintech is also in advanced talks with other leading strategic investors to join its transformational journey, signaling a broad industry shift towards collaborative fintech innovation.
The parties did not disclose the size of Citi and BNP’s investment, or the percentage of the company they would acquire.
Turntable seats and quarter industrial banks
As part of the deal, BNP Paribas and Citi will take two positions on a rotating basis. The unique governance model allows institutional investors to contribute to the strategic direction of the platform. United Fintech is committed to hosting quarterly industry discussions on shared challenges and innovation to facilitate industry dialogue and foster a collaborative ecosystem where the pooling of resources and ideas will enable financial institutions to accelerate their leap into the digital age.
Junaid Baig, Head of Strategic Investments and Co-Head of Strategy with BNP Paribas Global Markets said:
“For BNP Paribas, it’s all about trust in validating fintechs, ensuring they meet the highest standards of excellence and offering a strong ecosystem for innovation. By being able to combine the best of both worlds, we see this as the beginning of a new era where industry participants can grow together.”
Ayesa Latif, Global Head of Foreign Exchange Products at Citi said:
“Procuring specialist fintech companies is increasingly difficult for large institutions. United Fintech’s neutral Digital Transformation Platform fills gaps in the market, complements our overall offering and drives innovation in the market through collaborative efforts.”
CEO: Investments demonstrate ‘proactive leadership’
Founded in 2020 by CEO Christian Frahm (pictured above), United Fintech has rapidly expanded to employ over 160 people in 8 countries. The investment round is a significant milestone that United Fintech expects will facilitate further support from strategic investors.
United Fintech CEO Christian Frahm added:
“More than an important milestone for United Fintech, the support of Citi and BNP Paribas is a testament to forward-looking leadership. As momentum builds, we predict more financial institutions will soon follow: Our vision for an industry-neutral platform for digital transformation, enabling rapid access to the world’s most innovative fintechs, is shared by every C-level executive we’ve spoken to over the past four years and their support energizes our pursuit of a unified ecosystem.”
About United Fintech
Founded in 2020, United Fintech is an industry-neutral Digital Transformation Platform where global financial institutions and cutting-edge technology providers come together to unleash their full potential and enable the future of finance. United Fintech remains at the frontier of innovation by acquiring engineering-driven fintechs in Capital Markets, Wholesale Banking and Wealth Management under one central umbrella and in just four years, the company has acquired five fintechs and is on track to acquire many more more.