US Bank boosts fintech investment with stake in two VC firms
US Bank has become a limited partner in two venture capital (VC) firms that invest in fintech start-ups looking to work with larger, legacy banks.
The investments will bolster US Bank’s own digital products
The investments in Fin Venture Capital and Commerce Ventures are a culmination of work carried out by the bank’s dedicated fintech engagement unit, set up five years ago.
The unit combines the bank’s various business units with potential fintech partnerships to bolster its own digital and mobile products and services.
David Ness, who leads the fintech engagement unit, says the developments, investments and partnerships that the unit fosters are “vital” in the bank’s decision-making and relationship building.
“We’re active in all areas within fintech,” he says.
The unit has already worked with fintechs on cryptocurrency, distributed ledger technology, fraud detection and API integrations, for example.
“We leverage an extensive network of partners to source options, based on a series of relationships we’ve built over the years,” Ness says. “These two investments enhance that even further.”
The VC firms have a deep understanding of the fintech space, Ness adds, and can deliver tailored research and insights into emerging trends and the bank’s specific areas of interest.
“The firms get a partner that can help build and scale their companies, and it gives them the chance to help our customers with their innovative solutions.”
