Exclusive: Small-bank-focused Apiture raises $29M

Apiture, a maker of front-end software for smaller banks, raised $29 million in funding with Live Oak Ventures leading the round, the company tells Axios exclusively.

Why it matters: Regional and community banks have struggled to keep up with their larger rivals when it comes to tech overhauls. Apiture's plan is to help those smaller banks catch up.

How it works: Apiture builds the front-ends for consumer and business banks — for example, something as simple as signing up online for a bank account.

• Apiture also offers API and embedded banking services, two of its fastest-growing businesses. If a physician wants to embed their community bank information into their own software for example, Apiture can do that.
• The company, which charges a subscription fee for each service, is not yet profitable but expects to hit revenue in the upper $60 million range this year.
• Apiture's "sweet spot" is the cadre of banks holding $1 billion to $10 billion in assets.

Context: Apiture is not alone in noticing the market gap; its rivals include John Henry and FIS. Venture-backed businesses like MANTL also provide tech services for smaller banks.

• This all comes as JPMorgan has said it plans to spend $12 billion on tech annually, beginning this year. Citi, too, has boosted its budget, spending $10 billion last year.