An arm of Standard Chartered, the FTSE-100 bank, is acquiring a stake in a British company created with the aim of providing ethical financial products to customers.
Sky News understands that SC Ventures will announce on Monday that it is injecting an unspecified multi-million pound sum into Algbra, which counts a number of illustrious names from the business and financial world among its backers.
City sources said Singapore-based SCV was investing at least $10m (£8.02m) in Algbra, although neither the exact amount nor the resulting valuation could be determined.
As part of their collaboration, Algbra has reportedly agreed to use its core banking platform to build Shoal, a new digital venture announced in 2021 by Standard Chartered Bank to “give UK savers the power to help fund the fight against climate changes”.
Shoal was originally contracted to be built by Starling Bank, but will now see Algbra’s technology deployed, according to a fintech source.
Algbra declined to comment.
SC Ventures’ investment represents the first in a UK-based company.
Sources said it underlined a growing trend involving alliances, rather than competition, between fintechs and big banks.
Algbra’s existing investors include Lord Hammond, former Chancellor of the Exchequer Alastair Lukies, a leading figure in British fintech, and Rick Haythornthwaite, NatWest Group and AA chairman.
Authorized and regulated by the Financial Conduct Authority, Algbra was co-founded by Zeiad Idris and Fizel Nejabat.
SC Ventures did not respond to a request for comment.
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