BNP Paribas and Citi have made history as the first institutional investors in United Fintech, a company focused on acquiring a portfolio of vendors in capital markets, wealth management, and wholesale banking.
Founded in 2020 by CEO Christian Frahm, United Fintech has successfully acquired five fintech companies, employing over 160 people across eight countries. The firms included in this collective are Cobalt, FairXchange, TTMZero, Athena Systems, and NetDania.
As part of the financing arrangement, BNP Paribas and Citi will each take two rotating board seats to help shape the strategic direction of the platform.
Junaid Baig, head of strategic investments and co-head of strategy at BNP Paribas Global Markets, stated, “For BNP Paribas, it’s essential to trust in the validation of fintechs, ensuring they meet high standards and provide a strong ecosystem for innovation. By combining the best of both worlds, we believe this marks the beginning of a new era where industry participants can thrive together.”
Ayesa Latif, global head of foreign exchange products at Citi, emphasized the challenges large institutions face in acquiring specialist fintech firms. “United Fintech’s neutral Digital Transformation Platform addresses market gaps, enhances our overall offerings, and fosters innovation through collaborative efforts,” she noted.
United Fintech CEO Christian Frahm expressed optimism about drawing more leading institutions into this collaborative initiative. “Our vision for a neutral industry platform facilitating quick access to the world’s most innovative fintechs has resonated with every C-level executive we’ve engaged with over the past four years, and their support fuels our drive for a cohesive ecosystem,” he said.