FinTech and commerce startups are hot properties today. Not all, but many of them. The long R&D cycles, transformation projects and big outsourcing projects at banks are giving way to collaborative and open innovation models. Mobile payments software provider Monitise and the Spanish bank Santander have launched a joint venture to invest £20 million in FinTech startups.
The fund created with the 50/50 joint venture between Santander and Monitise will eye businesses that have the potential to provide financial services all over the world. Both partners will contribute £10 million of capital each to the joint venture over a period of two years.
Santander is opening its door for the financial technology businesses by backing it with the required capital. At the same time, these businesses can access Monitise’s cloud-based technology system that connects banks to financial services.
The fund will operate from London and will be headed by Julio Faura, one of Santander’s innovation leaders. Monitise founder Alastair Lukies will chair the new venture.
Monitise will receive a multi-million pound upfront license fee and the company is looking forward to increase its revenue with this new venture. This new step will also help the company in accelerating its customer base by offering its services to the companies supported by the joint venture.
Based in Spain, Banco Santander is a leading retail and commercial bank with a meaningful market share in 10 core countries in Europe and the Americas. Santander is the largest bank in the eurozone by market capitalization and among the top 12 banks globally. Founded in 1857, Santander had EUR 1.43 trillion in managed funds, 12,950 branches and 185,400 employees at the close of 2014. In 2014, Santander made an attributable profit of EUR 5,816 million, 39% more than the previous year.
Monitise is a world leader in mobile money—banking, paying and buying with a mobile device. Leading banks, payments companies, retailers and mobile networks use Monitise's technology platforms, products and services to securely connect people with their money. Monitise's digital agency designs and delivers high-engagement apps across multiple industry verticals More information is available at www.monitise.com.