Santander to launch a $100M fund for Fintech companies out of London

$100m fund to invest in Fin-Tech related businesses in the next 2-3 years

Fund to be launched by CEO of Santander UK Ana Botín at keynote speech at the International Festival For Business in Liverpool on 3 July 2014

Financial Technology firms (Fin-Tech) will have a new source of investment with the launch of a Venture Capital fund for Fin-Tech Companies from Santander. The Venture Capital (VC) fund – which will be based in London, but with a global remit – will not only provide Fin-Tech companies with much needed finance, it will also support the digital revolution and ensure Santander’s customers world-wide benefit from the latest knowhow and innovations across the Banking Group’s Geographies.

The fund identifies a significant opportunity for Santander, with Banks having traditionally only accounted for 10 per cent of Fin-Tech innovations; whilst VC backed companies have supported 60 per cent. In addition, two-thirds of Fin-Tech financing in Europe originates in the UK.

It will be 100 per cent owned by Santander UK; but will be a self-standing, specialised, organisation, fully dedicated to the remit of supporting Fin-Tech companies worldwide. The fund will initially focus, among others, on:

  • Digital Delivery of Financial Services – aimed at reinforcing distribution and the overall customer experience in the new digital environment ”E-commerce and Payments ventures;
  • Online lending – Ventures using new data sources to provide better access to credit, including crowd and social funding;
  • E-Financial investments – online systems to distribute financial investment products with self-service and planning capabilities organised around the lifecycle; and,
  • Big Data Analytics – platforms to leverage financial and not financial information to provide better services to our customers.

Ana Botin, chief executive of Santander UK, said: “The UK is a global leader in financial innovation. The Santander Fin-Tech Fund builds on our philosophy of collaboration and partnership with small and start-up companies at Santander. In this case our aim is to provide Fin-Tech companies with much needed capital, whilst we gain know-how and our customers benefit from the latest thinking. I am immensely proud to be involved in this fund, as it will help the UK and all of the Santander Group to remain at the forefront of financial technology, whilst benefiting our customers.”