BNP Paribas and Citi Invest in United Fintech

Published about 2 months ago

BNP Paribas and Citi have become the first institutional investors in United Fintech. The organization, dedicated to acquiring a variety of capital markets, wealth management, and wholesale banking vendors, has now secured significant backing from these leading financial institutions.

United Fintech’s Growth

Founded in 2020 by CEO Christian Frahm, United Fintech has already acquired five fintech companies. The company now employs over 160 individuals across eight different countries. The firms acquired by United Fintech include Cobalt, FairXchange, TTMZero, Athena Systems, and NetDania.

Strategic Direction and New Deals

As part of the latest financing deal, BNP Paribas and Citi will gain two rotating board seats. This move allows the two institutions to contribute to United Fintech’s strategic direction. Junaid Baig, head of strategic investments & co-head of strategy with BNP Paribas Global Markets, highlighted the importance of trust in validating fintech companies, while also expressing optimism about the potential for growth through collaboration.

Challenges and Opportunities in the Fintech Market

The acquisition of specialist fintech firms is becoming increasingly challenging for large institutions, as noted by Ayesa Latif, global head of foreign exchange products at Citi. The neutral Digital Transformation Platform provided by United Fintech fills gaps in the market, complements existing offerings, and drives market innovation through collective efforts.

A Vision for a Unified Ecosystem

United Fintech CEO Christian Frahm shared that the company expects to attract more leading institutions to the collaborative movement. The vision of a neutral industry platform for digital transformation, aimed at enabling swift access to the world’s most innovative fintechs, is shared by every single C-level executive interviewed in the past four years. Their support is galvanizing the pursuit of a unified ecosystem, Frahm noted.