It's no secret that the number of banks has been declining in recent years, with smaller banks being devoured by industry giants. For many, this process of consolidation may be cause for hesitation as consumers face the potential loss of the more personalized service they are used to from smaller local banks. Fortunately, in this age of digital innovation, there are companies like Alkami Technology to help level the playing field.
Founded in the wake of the 2008 financial crisis, Alkami's cloud-based digital banking services have found traction with small banks and credit unions. The Plano, Texas-based innovator provides an underlying tech platform for mobile banking. Not only are clients allowed to design their own apps, but they do so with confidence based on the platform's secure and proven system architecture of continuous innovation on a single multi-tenant code base. The company understands that modern users expect seamless functionality across all digital devices.
It was no surprise then, when the fintech trailblazer recently announced the initial closing of a $140 million funding round. The investment was led by D1 Capital Partners, one of Wall Street's hottest hedge funds, which also holds stakes totaling $13.4 billion in tech giants like Microsoft, Alphabet, and Amazon.
Daniel Sundheim, founder of D1 Capital Partners, said that his firm’s mission is to, "back the world's best companies and management teams."
Alkami last raised funds in June 2019, when the company raised $55 million in a Series E funding round. At the time, Alkami was the platform of choice for more than six million registered users and more than 130 financial institution clients. Since then, there has been rapid expansion. In September, the fintech said its digital banking platform reached nearly 10 million users and the company surpassed $130 million in annual recurring revenue by adding its 165th client. The latest infusion of capital has raised Alkami’s total investments to $421 million since its founding.
From the beginning, Alkami has received some of the highest app store ratings in digital banking. It earned spots on Deloitte’s Technology Fast 500 lists in 2018 and 2019, and ranked 903rd in this year’s Inc. 5000, with three-year revenue growth of 516%.
The company, which now has about 600 employees, has not yet indicated what the funding will be used for. But there is little doubt that they will be investing in the same cutting-edge innovation, people, and white-label services that have distinguished Alkami as an industry leader in the digital banking space.