EXCLUSIVE – If the future of banking is partnering with fintech startups, then finding the most innovative and efficient fintechs becomes crucial for banks’ success. This demand has led to the rise of third-party run accelerator programs. One such program is Little Rock, Ark.-based The Venture Center’s FinTech Accelerator program, which is backed by financial services technology provider FIS.

After a “very successful 2017,” the Venture Center is set to begin vetting its 2018 class, Wayne Miller, VC managing director told Bank Innovation. The application deadline for its 12-week program is next week (Feb.5).

Already the program has about 300 applications, which will ultimately be distilled down to 10, he said. These 10 members receive an initial investment of $75,000 from FIS (it was previously $50,000) and access to roughly 90 mentors, and more than 40 banks, compared to 26 last year. The banking relationships, along with the investments by FIS, are “a key differentiating factor between us and other accelerators,” he said.

According to Miller, 18 of the 20 startups raised follow-on capital after the program’s demo day and 18 months into the program, a total of more than $22 million was raised, not including the recent raise of $10 million in a Series A round by payments technology provider Flutterwave, a graduate of last year’s program.

Two of the program’s 2017 startups — Monotto, a millennial engagement tool for FIs, and PFM company Bond.AI — presented at fintech conference Money 20/20 in Las Vegas, while another graduate AlphaRank, a predictive analytics company, was a “best in show” winner at Finovate’s New York conference last year.

Miller said the trick is to find statups for the accelerator that produce products with a “valid solution to a valid problem,” and sell those products in the manner of “one-to-many as opposed to one-to-one.”

Occasionally, FIS has inked deals with startups in the accelerator, he said. Last year, FIS signed partnership agreements with data management company Hexanika and FundSeeder, a marketplace for traders. Terms of the deal were undisclosed.

This year, as the applications come in, Miller said a lot of the focus is going to be on blockchain technology and artificial intelligence, particularly when it’s coupled with machine learning. When it comes to payments, a key area for FIS, the accelerator is looking for cardless technologies and biometrics, he said. Another area that is likely to enjoy the limelight in the 2018 batch is SME technology solutions, Miller said.

“We are seeing a lot of cashflow management and analytics solutions,” he said. “There is a great demand for SME technologies.”

Regtech and big data will, unsurprisingly, also be front stage this year, he said.

Since its founding in May 2014, the Venture Center has helped its startups members raise more than $38 million in funding and generate more than $28 million in revenue. The official 12-week program for this year will begin on May 2 in Little Rock, Arkansas.

Bank Innovation’s sister accelerator, INV Fintech, is affiliated with Fiserv, an FIS competitor.

To learn more about the latest developments in fintech and fintech investment, join us on March 5-6, 2018 at the Parc 55 in San Francisco for Bank Innovation 2018. Click here to request an invitation.