Swindon-based Nationwide, the world’s largest building society, has announced it has invested in a leading fintech as it aims to disrupt the business banking market by delivering “game-changing” customer service on both the high street and online.
Last year the Society announced that it would launch a business current account in support of the UK’s 5.7 million small businesses, from tradespeople and sole traders to owner-managed businesses.
The £15m investment in 10x Future Technologies - part of a Series B funding round - gives Nationwide a minority shareholding aimed at creating a true partnership approach to designing and building an innovative digital platform for the new current account. 10x is working with the Society to deliver the digital platform, which will be launched towards the end of the year.
As a mutual organisation driven by member needs and not profit, Nationwide will focus on smaller businesses, many of which have been underserved by the five big banks dominating 85 per cent of the market.
The Society, which has 15m members, up to a million of whom are business owners, is bidding for £50m funding from the Capability and Innovation Fund1 so it can reach as many small businesses as possible with a fully-fledged proposition.
More details here.
