Alkami Technology, a digital banking services provider, has announced its acquisition of Mantl, a fintech company often referred to as “the Shopify of account opening,” in a deal worth $400 million.

Founded in 2016 by Nathaniel Harley and Benjamin Conant, Mantl has developed software designed to simplify the digital account opening process for community banks and credit unions, enabling these institutions to increase deposits and ultimately, profits.

The acquisition is expected to be finalized by the end of March, with Alkami stating that the purchase will enhance financial institutions’ ability to onboard, engage, and grow their customer base, ultimately gaining a sustainable competitive edge.

Mantl, also known as Fin Technologies, has secured over $96 million in funding throughout its lifetime, according to PitchBook. The company’s most recent funding round was announced in January 2023, an extension of its Series B round, which valued the company at $345 million post-money.

Mantl’s investor base includes prominent firms such as CapitalG, Flourish Ventures, D1 Capital Partners, BoxGroup, Point72 Ventures, Clocktower Technology Ventures, and OldSlip Group, among others.

Initially, Mantl aimed to establish its own challenger bank, but later shifted its focus to supporting the existing 10,000 banks and credit unions in the U.S., 96% of which rely on outdated technology from third-party vendors like Fiserv and Jack Henry, according to Harley’s 2021 interview with TechCrunch.

The outdated technology used by many financial institutions hinders their ability to compete online and limits the digital banking options available to consumers, highlighting the need for innovative solutions like Mantl’s.

By pivoting to support community banks and credit unions, Mantl recognized the critical role these institutions play in maintaining competition and equity in the U.S. financial system, a move that ultimately led to its successful acquisition.

The acquisition appears to be a successful outcome for Mantl, validating its strategic pivot and innovative approach to digital banking.