Digital banking service provider Alkami Technology has acquired Mantl, which is said to be the “Account Opening Shopify” for $400 million.
Founded in 2016 by Nathaniel Harley and Benjamin Conant, Mantl has developed software that makes it easier for people to open accounts digitally with community banks and credit unions. The ultimate goal is that these institutions can increase their deposits and ultimately increase their profits.
The transaction is expected to close by the end of March. Alkami told TechCrunch via email that he would “be better allowed financial institutions to be installed, gaining and growing the base of account holders and gaining sustainable competitiveness.”
According to Pitchbook, New York-based Mantl (also known as Fin Technologies) has raised more than $96 million in funding over the course of his life. According to Pitchbook, the last fundraiser was announced in January 2023. This was January 2023.
Investors include Alphabet's Independent Growth Fund, Flourish Ventures, D1 Capital Partners, BoxGroup, Point72 Ventures, Clocktower Technology Ventures, and Oldslip Group.
Mantl originally set out to build its own Challenger Bank. However, the company noticed that there are 10,000 banks and credit unions in the US, with 96% of them outsourced their technology to third-party legacy vendors such as Fiserv and Jack Henry.
Such outdated technologies keep many financial institutions, such as community banks and credit unions, competing online, limiting the digital banking options available to consumers, the company said.
Mantl pivoted on the premise that most community banks and credit unions are important to maintain competition and fairness in the US financial system.
That pivot seems to have paid off.
