Alkami Acquires Fintech Innovator Mantl for $400 Million: A Game-Changing Move in Financial Technology
Alkami Technology, a leading provider of digital banking services, is set to enhance its offerings through the acquisition of Mantl, a company renowned as “the Shopify of account opening,” for an impressive $400 million. This strategic move aims to revolutionize how financial institutions engage with their customers in the digital landscape.
About Mantl and Its Innovative Solutions
Founded in 2016 by Nathaniel Harley and Benjamin Conant, Mantl has developed groundbreaking software that simplifies the process of opening accounts online at community banks and credit unions. The primary goal of Mantl is to help these institutions boost their deposits and, ultimately, their profitability.
Details of the Acquisition
The acquisition is expected to finalize by the end of March. Alkami stated in an email to TechCrunch that acquiring Mantl will enable financial institutions to onboard, engage, and expand their account holder bases, providing them with a sustainable competitive edge.
Post-acquisition, Mantl will function as an independent business unit under the leadership of its current CEO, Nathaniel Harley. Harley will report directly to Alkami’s CEO, Alex Shootman.
Funding and Growth of Mantl
Based in New York, Mantl, also known as Fin Technologies, has successfully raised over $96 million in funding throughout its journey. According to PitchBook, Mantl’s last publicly announced funding round in January 2023 was an extension of its Series B, valuing the company at $345 million post-money.
- Investors include:
- CapitalG (Alphabet’s independent growth fund)
- Flourish Ventures
- D1 Capital Partners
- BoxGroup
- Point72 Ventures
- Clocktower Technology Ventures
- OldSlip Group
The Shift in Mantl’s Business Model
Mantl initially aimed to create its own challenger bank. However, the founders recognized that there are approximately 10,000 banks and credit unions in the U.S., with 96% of them relying on third-party legacy vendors like Fiserv and Jack Henry, many of which utilize outdated technology. As explained by Harley in a TechCrunch interview in 2021, this antiquated technology hampers the ability of many financial institutions to compete effectively online.
Mantl pivoted its strategy, focusing on empowering community banks and credit unions, which play a vital role in maintaining competition and equity in the U.S. financial system. This strategic shift appears to have been a wise decision.
Conclusion
With the acquisition of Mantl, Alkami Technology is poised to strengthen its position in the digital banking sector. This partnership not only enhances the capabilities of community banks and credit unions but also ensures that consumers have access to modern banking options. For more information about digital banking trends, visit our Digital Banking News page.
