Fifth Third Bank announced Tuesday it plans to purchase Provide, a digital platform for healthcare practices, for an undisclosed amount.
The Cincinnati-based bank said the acquisition, which is subject to closing conditions and regulatory approvals, positions the bank to address the complex lending and banking needs of retail healthcare providers.
Fifth Third invested in Provide in 2018 and began funding loans through the fintech’s platform last year.
Fifth Third isn’t the first bank to pursue an acquisition that ties its banking services to the healthcare industry.
Cleveland-based KeyBank purchased student loan refinancing startup Laurel Road for an undisclosed amount in 2019, and launched Laurel Road for Doctors in March, a digital bank that offers tailored financial services to healthcare professionals. KeyBank plans to add checking and retail investments to the platform this year.
JPMorgan Chase last month said it would launch Morgan Health with the aim to improve health equity and medical cost control. The program stands as a successor in spirit to Haven, a joint healthcare venture the bank backed alongside Amazon and Berkshire Hathaway. Haven suspended operations in January.
"The healthcare industry is one of the largest and fastest-growing segments of the U.S. economy. Over the last decade, Fifth Third’s healthcare team has expanded its presence and expertise to become one of the top healthcare banking platforms for middle-market and corporate clients," the bank's chairman and CEO, Greg Carmichael, said in a statement. "Together, we can deliver a client experience that enables healthcare providers to focus on what they do best — providing the care their patients need while we make their banking experience convenient and efficient."
Provide, which was founded in 2013 by Daniel Titcomb and James Bachmeier III, will maintain its brand identity and operate as an independent business line, Fifth Third said.
Provide launched under the name Lendeavor, with a lending product that enables healthcare providers to start, buy or expand their healthcare practices.
The company rebranded to Provide in December 2020, following a $34 million Series A and B equity financing round led by QED Investors, with additional funding from Fifth Third, Montage Ventures and Clocktower Technology Ventures.
"The future of financial services lies in bringing customized best-in-breed products to specific groups of people who need them," Frank Rotman, co-founder and partner of QED Investors, said in December.
The platform has since expanded to offer banking accounts, insurance and payments services.
Following the acquisition, Provide will continue to scale and expand its product offerings for healthcare practices and the doctors who own them nationwide, Fifth Third said.
Since its launch, Provide has originated more than $1 billion in loans. In partnership with Fifth Third, the fintech has provided core banking and payments services to more than 70% of the doctors for whom it provides acquisition financing, the companies said in a release.
"We know that Fifth Third is the right place for us to grow our franchise and broaden our product offering, as we continue to attract the best talent and deliver market-leading customer experience to our clients," Bachmeier said in a statement.