Small business banking technology firm D3 Banking announced a new funding round led by West Partners on Monday (June 27), a move the firm said will help it invest in research and development.
Reports said D3 raised $10 million from West Partners for its digital SME and consumer banking tool, which is extended to existing financial institutions that want to strengthen their digital banking services for SME customers.
In a statement, D3 Banking CEO Mark Vipond said the new funding will help the company keep up with shifting market demands from these financial institutions.
"The past year we have seen a shift in the industry with leading financial institutions seeking modern solutions that provide the foundation required for developing a digital strategy that extends into the future," he said, pointing to recent deals with Arvest, First Tennessee Bank and IBERIABANK. "As a company we have successfully completed the largest replacement projects in the history of the industry."
Efforts to keep up with demand, he added, are what attracted investors.
"These benchmarks helped West Partners recognize the pace and direction of change in the digital landscapes and the role D3 Banking can play in arming banks and credit unions with the tools they need to competitively differentiate themselves," Vipond continued.
West Partners President Dennis O'Brien pointed to D3's innovative market strategy as cause for the investment.
"D3 Banking's commitment to replacing siloed, disparate channels with a consistent digital banking experience that uses data and analytics to provide Amazon-like financial services to the consumer makes this partnership an obvious choice," he stated.
Earlier this year D3 Banking announced a strategic partnership with FI Navigator to use its cloud-based banking module and data analytics capabilities to boost the technological capabilities of its online banking solution.
"By gaining deeper insight into the industry and our clients through FI Navigator, we will be able to ultimately better serve our customers and continue to provide them with the products and services they want and need," said D2 Banking CMO Michael Carter in a statement at the time.