United Fintech today announced it has acquired a further 26% stake in TTMzero, reaching majority ownership of 51% of the Berlin-based RegTech.
Danish-British United Fintech entered the Market Data & RegTech space in February 2021 with the acquisition of 25% stake in TTMzero, whose primary clients today includenames like Citi, Morgan Stanley and Commerzbank.
Simon Ullrich, co-founder of TTMzero, explained why the two founders sold their shares to United Fintech and describes how fintech is experiencing an increasing need for software solutions on a large scale due to the rising demand for compliance and security measures, which is pushing institutional.
He said:
Simon Ullrich
Our main motivation was that we wanted access to global markets and with United Fintech’s network, we believe we can grow into new jurisdictions.
As founders, we preserve the core culture of TTMzero which has always been a focus on product innovation and UX while United Fintech provides a scalable platform that allows us to service our customers as a global company.
Joining United Fintech
In a separate transaction, the two German entrepreneurs, who founded TTMzero, Simon Ullrich and Soenke Blunck, have used part of their share sale proceeds to invest in United Fintech on a group level.
For the past few years, the trend has been that financial institutions are looking to reduce the number of third-party suppliers. Historically, this would mean more expansive contracts with legacy providers, however, this is where we differentiate ´with a rare combination of great technology from the best niche providers under one umbrella, and we now see this emerging as a winning combo.
Frahm explained that on a group level, the fintech firm’s revenue has increased 5 times organically and through mergers and acquisitions. He stated he is confident that the company will grow further in its niche over the next few years.
United Fintech launched two years ago and, in that time, the firm has grown from just its founder Christian Frahm, to employing more than 160 people in 8 countries. The Fintech firm has acquired 5 capital markets software companies so far, converting them into United Fintech’s digital platform partners and has added Barclays, Deutsche Bank, ABN Amro, BNP Paribas and Standard Chartered Bank to their list of more than 200 customers globally.
Frahm aims to achieve several strategic acquisitions and partnerships with fintech companies in capital markets over the next decade. His objective is to develop a comprehensive roadmap that enables banks, asset managers, and other financial institutions to replace their outdated legacy infrastructure with innovative fintech solutions.
He added:
The financial sector is realizing that getting off legacy infrastructure and embracing newer and more open architecture is critical for survival in a world where their customers’ behavior and needs are changing drastically. The best products come from niche product companies – not from large legacy providers. That’s why our value proposition is attracting massive interest from financial services firms around the world, all of whom are in a digital race against time, and why these seem to rally around larger core providers over smaller stand-alone software firms like never before, giving United Fintech and our platform of products a seriously competitive advantage.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
