Since its founding in 1875, ABA has been committed to making sure banks of all sizes stay on the cutting edge of innovation. We actively support and promote technological advancements that make banking services more efficient, convenient and secure. Given the pace of change today, ABA is taking its commitment to innovation a step further by engaging with, and in some cases investing directly in, businesses and technologies that promise to help our member banks succeed in the future. ABA members lead this effort, working closely with our professional staff. Bank CEOs who serve on ABA’s Venture Investment Committee evaluate strategic investment opportunities that hold the potential to benefit ABA members and the industry as a whole, and then make recommendations to the Association’s Executive Committee.
ABA’s strategic investments may include companies at all stages of development, from pre-initial public offering, to startup and senior companies, and venture capital funds.
For more information on ABA’s strategic investments, please contact Brooke Ybarra.
Canapi is a financial technology venture platform investing in early-to-growth-stage companies that offer bank-friendly business models and technologies. ABA, alongside many other financial institutions, invested in Canapi’s Fund I in December 2020 and in Fund II in March 2022. With its investment, ABA will capture unique insights on fintech market trends and notable startups and share them broadly across ABA’s membership. ABA members can learn more about ABA’s partnership with Canapi.
fTLD Registry Services, LLC operates the .BANK and .INSURANCE top level domains. fTLD, a coalition of banks, insurance companies and financial services trade associations from around the world, governs in the best interests of these industries and their customers. A .BANK or .INSURANCE domain acts as a built-in stamp of approval for a bank or insurance business’s security measures, letting their customers know their site is trusted, verified and secured.
NYDIG is a leading provider of bitcoin solutions to banks. NYDIG takes a compliance-first approach and partners with digital front-ends and core banking providers to enable banks to offer a bitcoin custody solution to their customers. ABA invested in NYDIG in December 2021.
Finxact offers an innovative, open core banking platform for financial institutions that provides an alternative to the traditional way banks process day-to-day operations. Finxact’s Core as a Service approach allows banks of all sizes to respond quickly to innovation and customer demand. The company’s cloud-based model allows banks to make proprietary improvements and custom configurations while also giving them 100 percent access to their data. ABA invested in Finxact in January 2019, and exited with Fiserv’s acquisition of the company in 2022. Encouraging competition and innovation among core providers remains a top priority for ABA.
Summit is an emerging fintech company that offers a cost-effective IT solution that helps financial institutions transition to the cloud. With a leadership team that includes former bankers, the company is poised to take advantage of the expected growth of cloud services in the financial services industry. ABA invested in Summit in September 2018 and exited in 2021 as the company matured.