Santander and Monitise will launch a fintech venture builder later this year as part of a joint venture agreement.
The venture, with 50 percent participation from each party, will aim to invest in, build and scale fintech businesses capable of reshaping financial services.
Both partners have committed up to £10 million in capital.
Santander will bring its heft as the largest Eurozone bank by market capitalisation, while Monitise will provide access to its cloud-based platform for connecting banks to digital innovation for customers.
Monitise will receive a multi-million pound license fee in addition to ongoing revenues generated by the initiative, in addition to growing its client portfolio.
Santander innovation leader Julio Faura will lead the venture while Monitise founder Alastair Lukies will chair it. The venture will be based in London, as Santander’s existing Innoventures fund is. Announced last July, the £58 million venture capital fund aims to support technology innovation in the financial sector.
The Spanish-based finance group invested $5 million in mobile payment and loyalty provider MyCheck in March and in April backed an open source alternative to Android in an $80m (£54m) funding round, joining Twitter, Telefonica and Rupert Murdoch.
