BNP Paribas (EPA: BNP) and Citi (NYSE:C) have become the first institutional investors in United Fintech Group Limited, 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 transformative journey, signaling a broad industry shift towards collaborative fintech innovation.”
As part of the deal, two rotating board seats “will go to BNP Paribas and Citi.”
The unique governance model allows institutional investors “to contribute to the platform’s strategic direction.”
United Fintech has committed to host quarterly industry roundtables “on shared challenges and innovation to facilitate industry dialogue and foster a collaborative ecosystem where pooling resources and ideas will enable financial institutions to accelerate their leap into the digital era.”
Junaid Baig, Head of Strategic Investments & Co-Head of Strategy with BNP Paribas Global Markets, said:
“To BNP Paribas, it is all about trust in the validation of fintechs, ensuring they meet the highest standards of excellence and offering a robust ecosystem for innovation. Managing 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 firms is increasingly challenging for large institutions. United Fintech’s neutral Digital Transformation Platform fills gaps in the market, complements our overall offering, and drives market innovation through collective efforts.”
Founded in 2020 by CEO Christian Frahm, United Fintech claims that it “has rapidly expanded to employ over 160 people across 8 countries.”
The investment round is a major milestone that United Fintech expects will facilitate further backing from strategic investors:
United Fintech CEO Christian Frahm said:
“More than a significant milestone for United Fintech, the backing of Citi and BNP Paribas is a testimony of forward-thinking leadership. As momentum builds, we project that more financial institutions will soon follow: Our vision of a neutral industry platform for digital transformation, to swiftly enable access to the world’s most innovative fintechs, is shared by every single C-level executive we’ve spoken with for the past four years, and their support energises our pursuit of a unified ecosystem,”
Founded in 2020, United Fintech is “a neutral industry 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 on the frontier of innovation “by acquiring engineering-led fintechs within Capital Markets, Wholesale Banking and Wealth Management under a central umbrella and in just four years, the company has acquired five fintechs and is on track to acquire many more.”