Nationwide invests in banking tech provider ahead of business banking launch

Building society Nationwide has invested in ‘open banking’ vendor BankiFi as it prepares to roll out business banking accounts.

BankiFi uses open banking to provide a suite of business microservices which plug into banking infrastructure through APIs.

The technology means that providers like Nationwide, who will be launching its business current account later this year, can offer additional services to businesses as part of the account, such as accounting, invoicing, payments, VAT submission, lending and banking services.

The investment is the latest deal from the £50 million Venturing Fund set up just over a year ago, that is designed to create partnerships in which the Society and start-ups share knowledge and expertise.

As part of the fund, Nationwide – whose headquarters are in Swindon – is making strategic investments in and partnering with early stage start-ups exploring innovative products and services that could provide real benefits for the Society’s members in the future.

Tony Prestedge, deputy chief executive at Nationwide Building Society, said: “The Society continues to invest for the future. Investing in start-ups like BankiFi will help us explore new capabilities and technologies that will help deliver our technology strategy both now and in the future.

“This latest investment will allow us to learn from a start-up that already has experience of the services that business want and need, while at the same time sharing our knowledge and expertise from being at the forefront of innovation for over 130 years.”

Mark Hartley, founding partner at BankiFi, said: “We truly believe that the value creation in Open Banking centres around the business customer. They deserve financial and banking services that are wrapped around their daily lives, offered by a robust partner that can offer continuity and a flexible approach.

“Banks and building societies can bundle our micro services into any bundle they or their customers might choose and offer it through the channel they know and use.

“This highly relevant experience is now possible with the latest technology, through one bank cockpit without sending the customers off to meander through a ‘jungle of apps’.

“Nationwide wants to ensure its business customers get access to the best technology and we look forward to working with them to explore how we might help them with their new business current account proposition.”