Morristown. N.J.-based Valley Bank aims to stretch beyond its regional roots through its venture fund, which has been a source of digital innovation for the bank.
“I think we have a component that’s national from a digital perspective,” Ira Robbins, chief executive at $62 billion Valley Bank, said in a March 18 panel at CBA Live 2025 in Orlando, Fla.
Robbins credits the bank’s venture arm for this. Valley Ventures was started after hedge funds came to the bank looking to start venture funds though they did not have knowledge specific to banking needs, he said.
“We have about 29 different companies that we invested in today, and I think it’s been a huge focus of innovation across our organization,” he added. “We get a partner that’s embedded in with what we’re doing, and we’re able to grow a certain technology.”
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Valley’s 2 tech rules
While the bank did not disclose the value of its venture fund or the number of portfolio companies it currently uses, Neal Kapur, managing partner at Valley Ventures, told Bank Automation News it measures a fintech’s commercial value by two parameters:
- Solutions for bank operations; and
- Solutions for client needs.
Fintech solutions Valley Ventures has invested in that the bank uses include:
- Real estate software Built;
- Check fraud prevention software Refine Intelligence;
- Appraisal management software firm Reggora; and
- Technology sandbox NayaOne.
Solutions being used by bank clients include:
- Rent management platform Rhino;
- Housing software Pronto; and
- AI-powered analytics and reality capture platform OpenSpace.
Valley’s strategic approach helps the bank expand its client base while also attracting talent to the organization, Robbins said during the panel.
“People feel like have a thumbprint of the future that the organization is going to look like,” Robbins said. “So it’s really driven our innovation to be more than just words, but aligned with the strategic direction and [client needs].”
Collaborative approach
Valley Ventures’ vetting process also involves collaboration between its ventures and innovation and technology banking teams and a network of partners that includes venture capitalists, corporate partners, clients and startup accelerators, Kapur said.
“We are focused on both financial returns and strategic returns,” Kapur said, adding that financial returns are critical since startup investment is inherently risky.
“Strategic returns come in many forms, but our goal is to bring innovation—ranging from immediately relevant partnership opportunities to novel ideas,” he said.
Since the bank launched its venture fund in 2017 with a $100 million investment, it has also expanded its digital footprint through partnerships with external technology partners. The bank recently teamed up with Finley Technologies to improve its loan portfolio management and minimize risk on existing loans.
Valley Ventures also co-creates solutions with its fintech partners, which the bank refers to as a “design partnership capability,” Kapur said.
“The advantage is that Valley can bring its expertise, and a startup can bring its engineering talent and rapid development capability, and together, we can create a solution that both fits our need and that is extensible to other banks. It’s a win-win,” Kapur said.
Valley Executive Vice President and Chief Operating Officer Russell Barrett will discuss Valley Bank’s venture fund’s strategy and priorities in the upcoming Bank Automation News webinar “Emerging fintechs: New technologies you need to know now” on Tuesday, April 8, at 11 a.m. EST. Register here.
