First Data (NYSE: FDC) and Live Oak Bancshares, Inc. (NASDAQ: LOB) announced on Monday they have closed the digital banking joint venture deal that was announced earlier this year. The new company, named Apiture, will combine First Data’s and Live Oak Bank’s digital banking platforms, products, and services, delivering innovative technology solutions tailored for financial institutions.
According to the companies, with Live Oak’s cloud-based banking technologies, First Data’s digital banking solutions, and the combined research and development of two global leaders in financial services technology, Apiture will accelerate the delivery of new digital banking solutions to the market. Chris Cox, President of Apiture and former Head of Digital Banking at First Data, stated:
“With the agility of a startup, and the resources of First Data and Live Oak, Apiture will provide community and regional banks with technology that matches that of the world’s largest financial institutions. We decided to call the joint venture Apiture because of the focus we have on APIs and providing an open platform to deliver best-in-class solutions to this important market.”
Chip Mahan, Chairman and CEO of Live Oak Bancshares, also commented:
“We believe banking is broken in its current form, and we will continue to invest in the technologies and companies that solve the problem. To that end, Apiture will play a big role in shaping the future of our industry. As a new Apiture customer, Live Oak will leverage the platform to access low-cost deposits through digital channels at scale.”
First Data and Live Oak Bancshares then noted that Apiture’s digital banking solutions include online and mobile platforms that make it simple for consumers and businesses to manage digital bill payments, balance inquiries, fund transfers, mobile check deposits, and more. With these solutions and services, financial institutions can provide customized online banking websites and mobile applications to their customers in a cost-effective way.
First Data added last year it introduced “Digital Banking Reimagined,” an initiative that evaluated the way consumers interact with their finances. With more than 18 months of research and development, the company launched a new digital banking user interface to simplify money management in a mobile-focused way, which will continue under the joint venture. First Data and Live Oak Bancshares each own 50 percent of Apiture.