Republic Bank & Trust Company has launched a bank tech incubator to support technology companies and their products, the company announced Tuesday (May 31).
“The BankTech Incubator allows us to create long-term partnerships with technology companies and share deep industry knowledge that influences the technology we use within the Bank,” said Andrew Trager-Kusman, the Louisville, Kentucky, company’s chief strategy officer. “We see value in investing in companies with which we also have a strategic relationship. These types of relationships will be truly symbiotic.”
To qualify for the program, companies or products need to have either an existing or planned strategic relationship with Republic so that the bank can invest in companies its customers and associates know and trust.
The incubator program follows Republic’s hiring of Chief Information Officer Jeff Starke, who will guide the selection of candidates. Republic said the program builds on its earlier tech offerings, including 90 Interactive Teller Machines (ITMs) installed in Kentucky, Indiana, Ohio, Tennessee and Florida, mobile and online banking used by more than two-thirds of its retail clients, and products offered through its Republic Processing Group.
“We’re going to be very thoughtful and selective to ensure the BankTech Incubator portfolio allows us to better serve the needs of our clients, as well as the Bank,” said Trager-Kusman. “We do not have any current investments, but we’re confident this initiative will allow us to deepen our existing strategic relationships while we continue to develop new relationships in undiscovered areas.”
Read more: Banking-as-a-Service Paves Way for New Revenue Streams, Financial Super Apps
Earlier this year, PYMNTS spoke to i2c President Jim McCarthy about how digital finance upstarts have had to seek out traditional banking partners that could act as underwriters and ensure compliance — offering the form and structure to provide checking accounts and cards.
In some cases, the rise of platforms has brought banks and FinTechs together, McCarthy said. For the banks, there’s the advantage of using the platforms to market compliance and issuance services and launch their own incubator to test their digital initiatives.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
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