U.S. FinTech Autobooks announced new funding to support its SMB banking solutions.
Reports Monday (March 13) said Autobooks secured $5.5 million in Series A financing led by Draper Triangle. The company provides online banking platforms with small business solutions to help FIs better service their SMB clients.
The company cited research from Below Research that found 70 percent of SMBs say they would use a cash flow management solution if it were offered by a bank, representing a gap between what small businesses want and what they get from their banks.
“We’re seeing tremendous interest in small business cash management and integrated accounting solutions from financial institutions small and large,” said Autobooks CEO Steve Robert in a statement. “Banks and credit unions are looking for differentiated product offerings that not only deliver value for their members, but create new revenue streams and lending opportunities.”
The new funding also saw participation from CU Solutions Group, Baird Capital, Detroit Venture Partners and Invest Michigan, the company said, adding that the round follows its self-funded $2 million in seed financing.
“We are really pleased to have such a strong group of local and national investors, including VC funds and a strategic partner,” Robert said. “This funding will enable us to expand our operations, which is already well under way with multiple credit unions and banks, and to refine our product, sales, distribution and marketing strategies to better serve small businesses.”
The company did not indicate when these pilot programs would advance into more large-scale launches.
In another statement, Draper Triangle Managing Director Jonathan Murray said Autobooks offers a chance for banks to meet SMB customer needs via collaborative efforts.
“There is tremendous opportunity for financial institutions to partner with FinTech companies, especially those that understand how to navigate the complex financial, technical and regulatory environments,” Murray stated.