Fintech
Customer Bank buys FDIC stake in fintech investment fund
Customers Bank has announced its sixth overall venture fund investment. After submitting a successful bid to the Federal Deposit Insurance Corp. (FDIC), Customers Bank has purchased a minority limited partnership stake in the financial technology (fintech) investment fund.
In its announcement late Wednesday, subsidiary Customers Bancorp said it purchased a $5 million interest in the fund at a discount of about 70% to the original cost of the investment.
“This investment further solidifies Customers Bank’s position as a leading partner in the venture capital community,” Sam Sidhu, president and CEO of Customers Bank, said in a statement. “It also provides access to deal flow, partners and customers in the venture tech and startup sectors, both strategic growth areas for the bank.”
Sidhu added that investments like the one just completed have increased the size of clients’ venture banking customer base “and helped find technology partners for the bank’s operational and technology roadmap.”
In June 2023, Customers Bank purchased a $631 million Signature Bank legacy loan portfolio from the FDIC. Through that acquisition – as well as the integration of approximately 30 highly experienced venture bankers – the bank continues to support and resource entrepreneurs and the markets in which they operate across the United States, the bank said in a press release.
According to the release, the Bank’s investments for 2023 and the relative stability provided to the venture and technology communities have allowed the Bank to quadruple its portfolio of clients served in the space.
Fintech is the technology used to support or enable banking and financial services.
Customers Bank is headquartered in Charlestown Township, Chester County, and is the $22 billion-asset subsidiary of Customers Bancorp Inc., which is headquartered in West Reading, Berks County.
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