Cloud banking vendor for small institutions gets big boost

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Alkami Technology, a provider of cloud-based digital banking services, received a sizable funding boost Monday to expand upon the white-label services it currently offers small banks and credit unions.

“The banks and credit unions we deal with [are] looking for that omnichannel experience and a platform that is contemporary with an experience you see with other consumer offerings,” said Mike Hansen, Alkami's CEO.

The fintech raised $55 million in a Series E funding round, led by General Atlantic and MissionOG. Other existing investors contributed to the round, including S3 Ventures and Argonaut Private Equity.

Alkami to date has raised more than $225 million in capital, according to a press release.

The Plano, Texas, company provides digital banking services to more than 130 banks and credit unions in the U.S.

Alkami earlier this year made American Banker’s annual Best Fintechs to Work For list.

Hansen said two areas Alkami is focusing on with smaller financial institutions are open application programming interfaces and financial wellness tools. Many smaller institutions want to connect their systems with third parties as a way to solve for consumer-facing technology shortcomings.

Alkami advises its partners to focus on financial wellness as megabanks and technology giants such as Apple do the same.

“With financial wellness, it’s amazing what knowledge our clients have into their customers and their financial needs and aspirations,” Hansen said. “We can help them by bringing that information together in a way that can help consumers make decisions themselves.”

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