Nationwide has taken a stake in the technology company set up by former Barclays chief Antony Jenkins, as it looks to strengthen its systems ahead of a new push into business banking.
The building society invested £15m in 10x Future Technologies, which specialises in the core banking platforms that power lenders’ operations.
The deal provides 10x with a new major partner after it lost its most important client last year. The company was developing a new platform for Virgin Money, but the project was abandoned after Virgin was taken over by CYBG.
It was announced as part of a broader £32m investment round that included existing backers Ping An and Oliver Wyman. 10x managing director Rebecca Skitt said the investment “validates our potential”.
Nationwide said last year that it would invest an extra £1.3bn in improving its technology over the next five years, in an effort to keep up with pressure from new tech-focused entrants and big investment programmes at rival lenders.
Its partnership with 10x will be particularly focused on building a platform for its new business current account service; it has been working with 10x since last summer and plans to launch the platform toward the end of this year.
Joe Garner, Nationwide chief executive, said: “We believe we can become the game-changer in the business current account market — just as we have for personal accounts.”
“Serving people on their terms and to a high standard is at the heart of what we stand for, which is why we are investing in both technology and a truly national branch network,” he added.
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