Fintech Joint Venture Launched: Here's Why Investors Should Take Notice
As the fintech industry matures, more and more companies in this arena are looking to either encroach on traditional banks' territory or figure out ways they can service banks to help usher them into the digital age. For instance, just last month, Square Inc (NYSE: SQ) applied for a bank charter in Utah that would allow the company to lend money to its small- and medium-sized business partners. This month, more news comes from a payment processing company looking for growth opportunities in the banking world.
First Data Corp (NYSE: FDC) provides six million retailers and over 4,000 financial institutions with payment processing solutions, mostly through its cloud-based operating system, Clover. This month the company finalized a joint venture with North Carolina-based Live Oak Bancshares Inc (NASDAQ: LOB), a bank that is no stranger to bringing fintech solutions to the traditional banking world. The new joint venture, to be called Apiture, will heavily rely on APIs (application programming interface) allowing different companies to more easily integrate software applications.
The purpose of the joint venture, per Apiture President Chris Cox, is to "provide community and regional banks with technology that matches that of the world's largest financial institutions." According to the press release, Apiture will make it easy for smaller banks and credit unions to provide their customers with customized websites and mobile apps, allowing consumers to efficiently and intuitively manage bill payments, mobile check deposits, and fund transfers. First Data and Live Oak will both own an equal 50% share of the new company.
Source: Fool.com
