Fintech firms struggling to get funding could now look towards Santander as a possible investor.
The bank has announced a venture capital fund which despite being London-based will have a global remit.
Santander has said that the fund isn’t just for fintech. It will also be used to invest in technology that “ensures Santander’s customers world-wide benefit from the latest know-how and innovations”.
Corporate venture capital
Banks currently only provide 10% investment in fintech compared to the 60% provided by venture capital firms.
The fund offers a significant opportunity for Santander to invest in London-based fintech, which has the title of European fintech capital.
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 fintech companies worldwide.
The fund will initially focus on the digital delivery of financial services, online lending, e-financial services, and big data analytics.
Ana Botin, chief executive of Santander UK, said: The Santander fintech 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 fintech companies with much needed capital, whilst we gain know-how and our customers benefit from the latest thinking.