Shares of mobile banking and payments firm, Monitise, are higher today by around 5% after it was announced that the firm is partnering with Spanish bank Santander, in the creation of a fintech joint venture (JV). The JV will be investing in, building and scaling fintech businesses. With contributions of up to £10 million over the next two years by both Monitise and Santander, the two firms will each hold a 50% stake in the venture.
The creation of the JV occurs after Santander had created an internal fund to invest in fintech startups in 2014. As part of that fund, the bank has been active within the European and UK fintech scene, both as sponsors of innovation events and assisting accelerator programs. As part of the partnership with Monitise, Julio Faura, one of Santander’s innovation leaders, will be heading the London-based program, also being chaired by Monitise founder Alastair Lukies.
For Monitise, in addition to working with Santander, they will be receiving a multi-million pound upfront license fee as part of their participation. As part of the arrangement, Monitise will also have access to accrue further revenues generated by providing services to companies supported by the JV. The JV expects to attract firms that will be able to benefit through the combination of Santander’s large banking network, as well as Monitise’s services in the mobile finance sector.