Alkami Technology has chosen Goldman Sachs Group Inc to lead preparations for a planned initial public offering of the U.S. banking software provider later this year that may value it at $3 billion, people familiar with the matter said on Monday. Backed by investors including General Atlantic, D1 Capital Partners and Fidelity Management and Research Company, the Plano, Texas-based firm supplies cloud-based platforms that banks and credit unions can use to set up digital offerings for their retail and business customers. The IPO plans come as the COVID-19 pandemic has highlighted how financial services companies need secure and effective digital platforms. Smaller banks typically do not have the resources to invest in developing such systems internally, and instead turn to third-party providers such as Alkami. Around 160 financial institutions are using their services, according to Alkami’s website. The sources requested anonymity as the IPO plans are private. Alkami did not respond to a request for comment, and Goldman Sachs declined to comment. Alkami last raised capital from private investors in September, taking $140 million at an undisclosed valuation. The company said at the time it had $130 million of annual recurring revenue. Thoma Bravo-backed MeridianLink, another U.S. banking software provider, has hired banks for a public listing, Reuters reported earlier this month. Investor interest in software companies, and the buoyant market for IPOs in general, is likely to be beneficial for both Alkami and MeridianLink. Banking software provider nCino Inc listed in July after pricing its IPO above an already-increased price range, and continues to trade at more-than 150% above its IPO price.