Nationwide Building Society is taking a £15 million stake in 10x Future Technologies, the fintech startup founded by former Barclays boss Antony Jenkins.
The £15 million investment is part of a broader Series B funding round for 10x, which suffered a blow to its ambitions last year when CYBG acquired Virgin Money, pulling the plug on a lucrative core banking product deal.
Virgin Money was the first major client for Jenkins' fintech startup, securing a contract in November 2016 to build a new digital core using API-based middleware to connect up legacy systems.
Nationwide intends to use the 10x cloud-native platform as a springboard into the business banking market, offering an array of modern mobile and online services aligned to its branch-based phsyical network.
The Society, which has 15 million members, up to a million of whom are business owners, is bidding for £50 million funding from the second tranche of funds released by the Banking Remedies Board, which is handling the distribution of cash mandated by the European Commission under the RBS bail out conditions.
Nationwide says it has been working with 10x since last summer to test its thinking around the account and to scope the requirements for delivery.
Chief executive Joe Garner says: “We believe we can become the game changer in the business current account market. Serving people on their terms and to a high standard is at the heart of what we stand for, which is why we are investing in both technology and a truly national branch network. Like us, 10x is aiming to massively improve service in financial services and are therefore a natural partner.”