Finxact announced that it has raised $30 million in equity financing, with participation from new and existing investors.
New investors include the American Bankers Association (ABA), Accenture Ventures, SunTrust Bank and other strategic industry leaders. There was also participation by all of Finxact’s existing investors, including Live Oak Ventures, First Data, Woodforest National Bank and T.N. Incorporation Ltd (TNI) of Thailand.
“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,” Frank Sanchez, Finxact CEO and founder, said in a press release. “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 new funding will be used toward the company’s growth, which includes Core as a Service, a first-of-its-kind option for banks to integrate new services and migrate to a real-time, digital banking-enabled system of record.
“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,” said ABA President and CEO Rob Nichols. “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.”
And Finxact’s approach to core banking aims to change the way financial institutions and vendors will engage and operate with one another.
“The core banking market in the U.S. is set to experience significant disruption in the near future, as banks continue to grow frustrated with their existing core providers and advances in cloud and digital technology make it possible to upgrade aging systems without doing a full rip and replace,” added Brett Goode, a managing director at Accenture and head of the company’s North America core banking practice. “We are pleased to invest in and form a strategic alliance with Finxact, enabling us to jointly bring our clients innovation that will help them transform to meet the digital needs of today and tomorrow.”