An innovative company behind shared bank branches has raised Series A funding.
Global technology group Glory will become the cornerstone investor in OneBanks, which has an ambition to become a leading infrastructure player in the provision of everyday banking services.
Filling the gap being created in the UK market by the progressive withdrawal from the High Street of the mainstream banks, it has completed a trial of shared branch kiosk formats in three locations this year.
It intends to begin a full UK nationwide roll-out, expanding to 15 locations by the end of 2022 and 150 by 2025.
Using the recently introduced open banking standards, OneBanks has developed proprietary technology that enables multiple banks to offer services from a single physical location at significantly lower cost than a traditional branch.
Participating banks’ customers – both personal and small business – have free access to multiple transaction types all supported by a member of the OneBanks team who is recruited from the local community.
It has previously secured capital from angel backers including Rupert Pennant-Rea, former deputy governor of the Bank of England, and Baroness Bottomley, the former Conservative cabinet minister.
Javed Anjum, Glory’s head of software strategy & innovation, will join the OneBanks board of directors, while Jonathan Hughes, serial entrepreneur and investor in the FinTech sector, will assume the role of executive chairman.
Hughes was part of the team that turned around Worldpay whilst it was under private equity ownership, led the creation of Tyl by NatWest, co-founded Pollinate International, and was a partner at Bain & Company.
Toshimitsu Yoshinari, chief solutions officer at Glory Global Solutions, said: “We have many decades of experience helping banks transform their physical branch networks using the latest technologies in response to changing consumer expectations.
“The mass adoption of mobile and online channels has fundamentally changed the economics of branch banking across the UK and other countries and yet consumers still value, and in many cases need, convenient access to face-to-face banking services.
“We are delighted to be making this investment in OneBanks as they seek to introduce, in partnership with the major UK banks, their new open banking-enabled approach to providing this service to communities across the UK through shared branches.”
Duncan Cockburn, founder and CEO of OneBanks, said: “We see a huge opportunity for us as an independent player enabling an efficient service model which will allow banks to offer better basic banking facilities in communities where they are needed.
“To have a leading global provider of banking technology solutions for the financial industry buying in so enthusiastically into our vision is immensely valuable – particularly at this stage in our development.
“Access to cash and the need for human interaction are still highly valued by many in our communities. We look forward to working together with our new partners to ensure that our concept of shared branch banking gains the widespread adoption to which we aspire.”