United Fintech, a London-based fintech group focused on acquiring and scaling companies in the capital markets sector, has announced its largest acquisition to date. The company has acquired Norway-based Commercial Banking Applications (CBA), marking its first foray into the commercial banking space. This strategic move highlights United Fintech’s focus on broadening its portfolio to meet the evolving needs of global financial institutions undergoing digital transformation. Founded in 2020, United Fintech has rapidly grown by integrating innovative fintech solutions to strengthen its digital ecosystem.
What Does CBA Bring to United Fintech?
CBA specializes in API-driven trade finance and payment solutions, catering to markets across Europe and Asia. With clients such as ABN AMRO, the company offers advanced tools that align with United Fintech’s objective of enhancing financial institutions’ digital capabilities. By incorporating CBA’s technology, United Fintech aims to deliver robust trade finance and payment platforms to a broader customer base, thereby expanding its service offerings. This acquisition also signals a shift for United Fintech, which previously focused on companies like Cobalt, FairXchange, TTMZero, Athena Systems, and NetDania in the capital markets domain.
How Was the Deal Financed?
The acquisition was financed through a combination of equity and debt provided by United Fintech’s existing investors, which include notable global banks such as BNP Paribas, Citi, Danske Bank, and Standard Chartered. This financial backing underscores the confidence of major industry players in United Fintech’s strategy and growth trajectory. While the exact financial terms of the deal remain undisclosed, the acquisition reflects United Fintech’s ambition to create a unified digital ecosystem for financial institutions.
Statements from United Fintech’s CEO and founder, Christian Frahm, emphasize the strategic fit of CBA’s technology within the firm’s overarching vision. He stated,
“Their technology perfectly complements our vision of building a comprehensive digital ecosystem for financial institutions.”
United Fintech’s previous acquisitions have focused primarily on solutions for capital markets, such as trading and analytics platforms. This acquisition of CBA marks a significant diversification of its portfolio, extending its focus into commercial banking. Historically, similar acquisitions by United Fintech were aimed at integrating specialized software tools to create a seamless ecosystem for their clients across eight countries. The addition of CBA indicates a broader strategy to bridge traditional banking services with modern fintech solutions.
This acquisition is not just a milestone for United Fintech but also a reflection of the increasing convergence between traditional banking and modern fintech. By integrating CBA’s offerings, United Fintech can cater to institutions striving to modernize their trade finance and payment systems. This also positions the company to address a wider range of challenges faced by financial institutions during their digital transformation journeys.
As financial ecosystems become more interconnected and complex, the capability to provide integrated, API-driven solutions will be crucial in addressing the demands of global markets. For financial institutions, partnerships with firms like United Fintech offer a path to modernized operations and streamlined services. By emphasizing the integration of innovative technology, United Fintech aims to strengthen its position within the fintech sector and provide comprehensive solutions to its clients.
