“Covid has accelerated across all our lives a big step up in digital adoption,” Jenkins said. “I think most people expect that to persist.”
The financial technology venture, which was initiated by the former Barclays CEO named Antony Jenkins, has been very successful in raising £132.5 million ($186.6 million) from investors in a bid to expand into North America.
Former Barclays CEO’s Fintech Venture Raises $187
If you are unaware, the 10x Future Technologies was founded by Jenkins in 2016. The company had made sure that the focus remains on their main aim. The help that they are providing to the banks is essential.
They are trying to help the banks shift away from legacy systems to cloud-based technology. New technology comes with the changing world, and no one is immune to that.
The company had been working nationwide, and they are thinking of expanding their circle. They are trying to expand to the US and Canada on a large scale. The ambition behind this initiative is real and to a point where the help offered is becoming existential.
Jenkins has mentioned that he intends to make the growing business even more so in the near future plan. Even though profit is still on their mind but that is not a plan for the much-prioritized growth that had been planned. They have been raising money for this purpose only.
For instance, in the United Kingdom, 10x is assisting Nationwide with its digital banking goals, and in Australia, the start-technology up’s is being utilised by Westpac to enable the pay-later buy-now-pay-later firm Afterpay to offer savings accounts.
Firm Announced it had Secured the New investment From Investors
On Wednesday, the firm announced it had secured the new investment from investors led by BlackRock and the CPP Investment Board, which is responsible for administering Canada’s pension plan. JPMorgan, Nationwide, Ping An, and Westpac were among the other investors in 10x’s current round.
At current exchange rates, the deal values 10x at nearly $704 million, putting it on track to achieve “unicorn” status, which is awarded to privately held technology companies with valuations of $1 billion or more.
The CEO of 10x has stated that the extra capital will be used to broaden the company’s reach into countries like the United States and Canada and to increase the capacity of its platform, which already assists dozens of banks in their digital transition initiatives.
Danger of Digital Disruption to the Banking Sector
Jenkins has repeatedly expressed concern over the growing danger of digital disruption to the banking sector. For instance, he projected in 2015 that banks might lay off half of their staff and shut down half of their branches within the next decade.
Jenkins now admits he “underestimated” the speed with which banks would reduce their physical presence, and he adds that the coronavirus outbreak has hastened the demise of traditional brick-and-mortar retail banks.
In his opinion, “Covid has accelerated throughout all of our lives a huge step up in digital adoption,” as stated by Jenkins. “I believe the general public anticipates that to continue.”
Five or six years ago, banks viewed fintech as a “niche activity” used mostly by millennials. Today, however, that perception has shifted as banks come to accept that “the future is digital,” as Jenkins put it. Over the past decade, new competitors have entered the British banking market and attracted millions of clients, making the industry more competitive.
In 2019, 10x made £52.4 million in sales, up from £13.5 million in the previous year. The company’s initial losses of £16.2 million have been reduced to £2.3 million.
It is the company’s long-term goal to become profitable, although Jenkins has stated that, for the time being, the company’s priority is growth.
Mambu, which secured money in January with a valuation of $2.1 billion, and Thought Machine, which was created by ex-Google engineer Paul Taylor, are two of the company’s competitors.