September 24, 2018
ABA Invests in Cloud Computing Company
FOR IMMEDIATE RELEASE
September 24, 2018
Association to consider other fintech investments
WASHINGTON — The American Bankers Association today announced that it has invested in an emerging fintech company that helps financial institutions transition to the cloud. The association’s board of directors, acting on a recommendation from a subcommittee of the board, has approved a direct investment in Summit Technology Group, a Pennsylvania company that works with banks and credit unions.
Summit Technology Group offers a highly attractive and cost-effective IT solution for banks. A thorough analysis and vetting process performed by a committee made up of ABA staff experts and board members found that Summit is poised to take advantage of the expected growth of cloud services in the financial services industry.
“When I convened an internal taskforce focused on fintech, I asked them to think outside the box to discover ways that we as an association can help keep the industry thriving in the face of constant technological innovation,” said Rob Nichols, ABA president and CEO. “This transaction reflects our forward-thinking approach to banking and technology, and offers not just an opportunity for a return on our investment, but a brighter future for our members.”
“We’re honored to be the first company to receive this kind of commitment from ABA,” said Ben Wallace, a Partner with Summit. “As former bankers that have been through this transformation, we know very well the efficiencies that can be realized. Our goal is to get as many banks and credit unions out of the closet and into the cloud as we can. This investment helps us get there.”
While the vetting process was similar to the review conducted for ABA Endorsed Solutions partners, this relationship is different in that ABA has taken an ownership stake in Summit Technology Group and holds a seat on its board of directors. The transaction formally closed in August.
As a result of the Summit investment, the board has directed ABA to consider additional opportunities to invest in emerging businesses that are anticipated to have an important impact on the future of banking. ABA will consider investing in companies that have the following attributes:
- a strong business model operating in a growth sector;
- solutions or services that are helping banks in efficient and innovative ways; and
- opportunities with banking models or technologies that benefit ABA members and impact banking in important ways.
“This is the start of a new era of innovation in banking,” said Nichols. “We’re all excited to see what the future will bring and do our part to ensure our members take advantage of every opportunity to grow and succeed.”
For more information on Summit Technology Group, visit www.bankers.cloud.
The American Bankers Association is the voice of the nation’s $17 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $13 trillion in deposits and extend nearly $10 trillion in loans. Learn more at aba.com.