KeyBank (Key) says it will use the Banking-as-a-Service platform provider’s technology to enhance its experiences across its commercial products, as well as advance the company’s embedded banking strategy.
The Cleveland-based bank was an early investor in XUP, co-leading its $3 million seed round alongside Naples Technology Ventures in February. KeyBank also previously partnered with the company to improve its Merchant Payments system, creating a unique partnership in the banking industry, according to Cleveland Business Journal.
XUP offers a number of cloud-based financial services through its platform, including customer onboarding, processor integrations, third-party risk analysis, customer relationship management (CRM) and integrated payment experiences.
“We’ve long embraced the software innovation that’s sweeping through the financial services industry, and the acquisition of XUP allows us to continue to be a leader in this space,” KeyBank Head of Enterprise Payments & Analytics Kev Gavrity stated in the release.
“XUP’s highly experienced team has accelerated us on the journey to build connectivity across our systems, our partners and our customers, to make it easy to do business with Key,” he said.
This purchase marks the next step for the bank’s evolving digital strategy. It follows its acquisitions of data analytics company AQN Strategies earlier this year and purchase of student loan refinancing platform Laurel Road in 2019.
The company has also formed partnerships with AvidXchange, BillTrust and Bill.com in recent years to further adaptation of its fintech solutions, according to the release. Key also partners with proptech APTEXX, healthtech InstaMed and insurtech Snapsheet to provide fintech solutions for specific industries.
“For us, creating relationships with FinTech organizations is an effective method for tapping into fresh, innovative ideas. It enables KeyBank to provide unique, holistic solutions and offer nontraditional treasury services. As a result, we bring the most innovative FinTech payment solutions quickly to market to best serve our clients,” KeyBank states on its site.
The bank now provides deposit, lending, cash management and investment services across 15 states and 1,000 branches. It also provides corporate and investment banking products, M&A advice and debt equity to businesses throughout the US.
In other recent fintech news, investment app-for-kids EarlyBird raised a $4 million seed round to promote investing for children, led by Reddit co-founder Alexis Ohanian’s Seven Seven Six. Revolut is also partnering with Cube to ensure global financial regulation.