Umpqua Bank sells fintech unit to banking tech firm Kony
Kony buys Umpqua’s fintech unit
In a fintech-techfin world, it is usually banks that acquire technology from fintech companies, and not the other way around. However, enterprise application company Kony is changing that narrative, writes Julie Muhn at Finovate.
The Texas-based company announced it is acquiring the assets of Pivotus, the innovation subsidiary of Umpqua Bank parent company, Umpqua Holdings. The financial terms of the deal were not disclosed.
Umpqua launched Pivotus in 2015 to serve as an environment where it could quickly develop, test and deploy new banking solutions for Umpqua. Cort O’Haver, Umpqua Holdings’ president and CEO, says: “As the speed of technological change continues to accelerate, it’s important that we’re able to make the most of our strategy and size by developing a network of partnerships that can accelerate our pace of differentiation.
“Finding a smart home for Pivotus – with the capital, technical expertise, and customer focus – is important for Umpqua moving forward, and Kony is a terrific partner.”
Kony anticipates the acquisition will augment its Kony DBX digital banking applications. The company launched Kony DBX earlier this summer to help banks with their digital strategies. The new digital banking platform and application suite offers pre-built apps and a digital banking platform to help banks and credit unions deliver digital experiences across all customer channels with less friction.
As a part of the deal, Umpqua will help Kony to continue developing the Pivotus Engage platform. Launched earlier this year, Engage helps banks offer a consistent user experience that maintains a human touch across multiple channels. After the acquisition is finalised, Kony will rename the tool Kony DBX Engage.
“Our partnership with Umpqua, combined with the talented Pivotus employees and the innovative technologies they’ve developed, is a landmark combination that will deliver high impact solutions for financial institutions around the globe,” states Thomas Hogan, chairman and CEO of Kony.
Earlier this autumn, Kony integrated with Payveris’ cloud-based money movement technology. In October of last year, the company launched a new digital banking solution that leverages Daon’s biometric tools.
Founded in 2007, Kony has raised more than $115 million to date.
