Alkami Technology, a leading provider of digital banking solutions in the US, has entered into a $400 million agreement to acquire fintech firm Mantl (also known as Fin Technologies). This acquisition is a strategic move to enhance Alkami’s capabilities in digital account opening, a crucial area for modern financial institutions looking to streamline processes and improve customer experiences.
What is Mantl’s Role in the Deal?
Founded in 2016, Mantl specializes in automating the account opening process for various deposit accounts, including business and consumer loans and deposits. By leveraging Mantl’s innovative technology, Alkami aims to bolster its existing digital banking solutions.
With a current client base of 112 financial institutions, including some ranging from $80 million to over $20 billion in assets, Mantl’s platform is already helping many banks and credit unions digitize their customer onboarding processes.
Alkami’s Vision for the Future
Alkami’s CEO, Alex Shootman, emphasizes that this acquisition is a key step in completing Alkami’s Digital Sales and Service Platform. By integrating Mantl’s account-opening technology with Alkami’s advanced data analytics and marketing solutions, Alkami plans to offer an even more powerful, seamless experience for its clients. The company believes this will enhance their ability to cross-sell services, boost revenue, and reduce customer churn.
How Will This Acquisition Impact the Market?
This deal is part of Alkami’s ongoing expansion into the fintech sector. In 2022, Alkami acquired Segmint, a company that specializes in account and transaction data, for $135.5 million. The integration of Segmint’s data-driven tools with Alkami’s new acquisition will provide financial institutions with comprehensive solutions for both customer acquisition and retention.
Alkami’s platform is already being adopted by several institutions, such as Financial Center First Credit Union and Gate City Bank, which have chosen Alkami’s digital banking technology to enhance their customers’ online banking experiences. The acquisition of Mantl will allow Alkami to further solidify its position as a leader in the digital banking and fintech space.
The Financial Details of the Deal
The acquisition will be funded with approximately $380 million in cash, alongside $13 million in restricted stock units that will be given to continuing Mantl employees as part of the transaction. The deal is set to close on or before March 31, 2025.
What’s Next for Alkami?
With this acquisition, Alkami will be better equipped to meet the growing demand for digital banking services. As the fintech sector continues to evolve, Alkami’s enhanced platform promises to help financial institutions stay competitive in an increasingly digital-first world.
By combining Mantl’s automation technology with its existing capabilities, Alkami aims to deliver a more comprehensive and efficient digital banking solution that benefits both institutions and their customers. With its strong track record and new capabilities, Alkami is poised to continue leading the way in digital banking innovation.
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