Barclays PLC (BCS.US) is investing in a UK-Denmark joint venture fintech firm specializing in banking technology, joining a group of investors that already includes four major European and American competitors. According to a statement released on Wednesday, the London-based lender will pay an undisclosed sum to subscribe to newly issued shares of United Fintech Group and secure a board seat in the startup.
United Fintech focuses on acquiring technology companies that serve the financial industry and integrating their solutions into its platform to meet the needs of banking clients. This year, the company has successfully acquired two fintech firms, bringing its total acquisitions to seven. Currently, it operates in 11 global locations with over 200 employees. Headquartered in London, it also maintains a significant presence in Copenhagen.
Over the past two years, BNP Paribas, Citigroup, Standard Chartered, and Denmark’s Danske Bank have already invested in United Fintech. With Barclays joining, the fintech firm’s bank investors will increase to five.
Christian Frahm, founder of the fintech company and former executive of Saxo Bank, stated that Barclays’ investment will directly support business expansion, including further investments in AI-focused solutions. "Large institutions are finding it increasingly difficult to directly adopt native AI technologies," he noted. Frahm expects the company to attract more bank shareholders in the "medium to short term."
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