BBVA beefs up its fintech fund

BBVA has increased in its financial technology (fintech) fund to US$250m and announced a partnership with Propel Venture Partners (Propel). Spain’s international banking will invest its US$250m in Propel’s funds as a limited partner, and Propel will manage the investment independently in a move designed to ensure the capital continues to be invested in the best digital financial services startups.

Propel will use the money – which includes the original $100 million which established the BBVA Ventures fund in 2013 – in a US and a European fund. Propel will also open an office in London in addition to its San Francisco headquarters, where its European fund will invest in the UK’s fintech ecosystem and in European opportunities. Propel will now manage BBVA Ventures’ investments, which include digital lender Prosper, wealth management advisor Personal Capital and Taulia, an online cashflow management tool for corporate purchasers and suppliers.

As well as investing in Propel, BBVA has made direct investments in fintech companies to support their development and as part of its digital transformation programme. The bank purchased tech company Simple in 2014 and recently took a 29.5% strategic partner stake in Atom, the UK’s first mobile-only bank.