Santander and Monitise Form Joint Venture to Spark Fintech Innovation (July 1, 2015)
Spanish banking titan Santander and U.K.-based mobile banking firm Monitise today announced the formation of a joint venture to launch new fintech startups in their own backyards, using the companies’ combined strategic and technical resources. The venture, which has not yet been named, will focus on “investing in, building and scaling fintech businesses with the potential to redefine and support financial services globally,” Monitise said. Each startup the enterprise selects will get access to Monitise’s mobile money platform, featuring a new cloud-based service, and the opportunity to partner with Santander, according to an announcement.
Santander and Monitise each will provide £10 million (US$15.6 million) to fund the venture, which will be based in London, and Julio Faura, Santander’s global head of R&D innovation, will be one of its co-leaders, along with Monitise’s former co-CEO Alastair Lukies. Analysts suggest the deal could help Monitise, which was founded in 2003 and has struggled to become profitable, reverse its fortunes. Monitise in August 2014 signed a JV with IBM. Santander has been eager to invest in emerging bank technologies. In November 2015, Santander made a 5 percent investment in Monitise, and last year the bank announced a separate investment pool of £63.8 million (US$99.6 million) to fund fintech startups in a push to be at the forefront of financial technology.