Former Barclays CEO FinTech 10x Raises $ 187 Million

Antony Jenkins, founder of 10x Future Technologies and former CEO of Barclays.

Chris Ratcliff | Bloomberg | Getty Images

London — Former Barclays CEO Antony Jenkins’ financial technology venture has raised £ 132.5 million ($ 186.6 million) from investors to expand into North America.

10x Future Technologies was founded by Jenkins in 2016 after being expelled from Barclays a year ago. The company says its purpose is to help banks move from legacy systems to cloud-based technology.

For example, in the UK, 10x is working with Nationwide on lenders’ digital banking ambitions, while in Australia, Westpac is using startup technology to open a savings account after paying now. We are trying to provide it.

The company said Wednesday that it raised new cash in a funding round jointly led by BlackRock and the CPP Investment Commission, which manages Canada’s pension system. Other investors in the latest round of 10x included JP Morgan, Nationwide, Heian and Westpack.

The deal brings a 10-fold valuation to around £ 500m (about $ 704m at current exchange rates), bringing private tech companies to the so-called “unicorn” status, which is valued at over $ 1 billion. Start on the road.

The 10x will use the new funds to expand into new markets such as the United States and Canada, expand the platform and support the digital migration plans of dozens of banks, the company’s CEO said.

“We have now reached a crucial point where we want to expand on a large scale,” Jenkins told CNBC in an interview.

Jenkins has issued some warnings about the growing threat of digital destruction to the banking industry. For example, in 2015, banks predicted that they could close half of their branches and dismiss half of their employees in 10 years.

Jenkins said he is now “underestimating” how quickly lenders can reduce operations in physical stores, adding that the coronavirus pandemic is accelerating the decline of face-to-face retail banking.

“Covid has accelerated a major step in digital adoption throughout our lives,” said Jenkins. “I think most people expect it to continue.”

Banks have changed from thinking of FinTech as a “niche activity” used primarily by millennials five or six years ago to the perception that the future is digital. The UK banking sector has become increasingly competitive over the last decade, with new entrants such as Revolut and Monzo attracting millions of customers.

Revenues 10x in 2019 were £ 52.4m, almost four times higher than £ 13.5m in the previous year. Startup losses shrank from £ 16.2 million to £ 2.3 million.

Jenkins said he’s focusing on business growth rather than short-term profitability, but the company plans to make it even more profitable in the future.

Its competitors include Mambu, which raised $ 2.1 billion in January, and Thought Machine, founded by former Google engineer Paul Taylor.

Former Barclays CEO FinTech 10x Raises $ 187 Million

Source link Former Barclays CEO FinTech 10x Raises $ 187 Million

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