Alkami Technology, a leading digital banking services provider, has announced its acquisition of Mantl, a fintech company known for its innovative digital account opening platform, in a deal worth $400 million. The acquisition is expected to close by the end of March, according to Alkami Technology.

Mantl, founded in 2016 by Nathaniel Harley and Benjamin Conant, has developed software that enables community banks and credit unions to open accounts digitally, increasing deposits and ultimately, profits. The company's platform has been described as "the Shopify of account opening" due to its ease of use and scalability.

The acquisition is a strategic move by Alkami Technology to enhance its digital banking services, allowing financial institutions to onboard, engage, and grow their account holder bases more effectively. Alkami Technology believes that the acquisition will provide a sustainable competitive edge to its clients, which include community banks and credit unions.

Mantl has raised over $96 million in funding from prominent investors, including CapitalG, Flourish Ventures, and D1 Capital Partners, among others. The company's last publicly announced fundraise was in January 2023, with a post-money valuation of $345 million.

Interestingly, Mantl initially set out to build its own challenger bank but later pivoted to focus on providing digital account opening solutions to community banks and credit unions. This strategic shift was driven by the realization that most financial institutions in the US outsource their technology to third-party legacy vendors, which often have outdated technology.

This outdated technology hinders the ability of community banks and credit unions to compete online, limiting digital banking options for consumers. Mantl's platform addresses this issue, providing a modern and scalable solution for these institutions.

The acquisition of Mantl by Alkami Technology is a significant development in the fintech industry, highlighting the growing importance of digital banking services. The deal is expected to have a positive impact on the industry, enabling community banks and credit unions to better compete with larger financial institutions.

In conclusion, the acquisition of Mantl by Alkami Technology is a strategic move that strengthens the latter's digital banking services. The deal is expected to have a significant impact on the fintech industry, enabling community banks and credit unions to better compete in the digital landscape.