The American Bankers Association today announced that it has made a direct investment in a fintech firm that helps financial institutions transition to the cloud. Summit Technology Group offers an attractive and cost-effective IT solution for banks, according to a thorough vetting process conducted by ABA staff experts and board members.
While the vetting process was similar to the due diligence process that ABA Endorsed Solutions providers go through, the relationship is different, ABA said. In addition to ABA’s ownership stake in Summit Technology Group, the association holds a seat on the firm’s board.
“Given the rapid and constant pace of innovation in the fintech space, it’s important that we be nimble and responsive to new opportunities,” said ABA President and CEO Rob Nichols. “This strategic transaction reflects our forward-thinking approach to banking and technology, and offers not just an opportunity for a return on our investment, but a brighter future for our members.”
ABA’s board has directed the association to consider additional opportunities to invest in fintech companies that have a strong business model in a growth sector, that help banks in efficient and innovative ways and that benefit ABA members.