Open banking software developer Finxact has secured $30m in equity financing from the American Bankers Association (ABA), Accenture Ventures, SunTrust Bank.
Others including Live Oak Ventures, First Data, Woodforest National Bank and T.N. Incorporation Ltd (TNI) of Thailand, had participated in the financing round of Finxact.
The funding will support growth of Finxact as the company aims to scale up to its market demand for a new category of core banking platform.
The company’s Core as a Service is claimed to be a new option for banks to efficiently differentiate their customer experiences, integrate new services and migrate to real-time digital banking enabled system of record.
Finxact CEO and founder Frank Sanchez said: “We started Finxact in the beginning of 2017, and we have focused on building a banking system of record that can effectively replace legacy core systems and also serve as a platform for rapidly evolving digital banking requirements.
“We’ve developed a platform that is functionally robust, reliable, scalable and highly efficient. We have multiple customer implementations currently underway and have raised capital to expand our capacity to go to market on a broader scale. We also plan to expand our integration activities with the financial services ecosystem and to mitigate the risk and complexity historically associated with core system migrations.”
The company aims to go beyond the regular norm of offering industry with modern technology and to change the way financial institutions and vendors will engage and operate with one another.
ABA president and CEO Rob Nichols said: “Bankers know that innovation is essential to remaining competitive, yet I’ve heard time and again that their relationship with their core provider can make it difficult to be agile in selecting products and partners.
“We are confident that the impressive team at Finxact will challenge the entire industry, including banks and their providers, to think differently about the way a core platform enables a bank to innovate.”
The banking services provider envisions of offering its transformative solutions to every bank. Its solutions are claimed to be technologically viable and economically valuable to banks of all sizes and types.
Its ecosystem brings together the best of modern technologies and practices, to offer commercial and technical scale needed for all banks to compete and grow.
Finxact is presently working with several US and international financial institutions ranging from de novo banks to top-tier banks, on projects ranging from full bank conversions to digital-only initiatives.