A new small business banking and financial services provider is launching in the U.S. market.
Rho Technologies announced Tuesday (Oct. 15) the rollout of its flagship offering Rho Business Banking, an FDIC insured bank account service with an integrated commercial card offering, as well as cash and treasury management tools.
In a press release sent to PYMNTS, Rho Technologies pointed to its focus on API integrations with Rho Business Banking, enabling the solution to connect with existing back-office solutions that small businesses use including Slack, Xero and QuickBooks. The bank also supports same-day ACH payments and does not charge transfer or wire fees. Deposits earn 1.6 percent APY on business savings deposits.
The banking service are provided by California-based Evolve Bank & Trust, Rho’s website notes.
The New York-based company is launching to a limited number of clients in anticipation of a full rollout, though the company did not indicate when that would occur. Small businesses can apply for a bank account in under three minutes, the company said.
In addition to its launch, Rho also revealed seed funding led by Inspired Capital. In a statement, Inspired Capital Founder and Managing Partner, Learnvest Founder and former CEO Alexa von Tobel pointed to “personal experience” that revealed gaps in the small business banking market, which “is laden with outdated incumbents and missing a modern customer-first experience.”
In another statement, Rho Co-Founder Alex Wheldon similarly highlighted personal experience that revealed small business banking challenges, while Co-Founder Everett Cook said large U.S. banks are “forced to offer something-for-everyone type service,” which “generally means small businesses and early-stage companies become an afterthought.”
Earlier this month another small business FinTech, Brex, announced the rollout of Brex Cash to offer small business clients an alternative to traditional bank accounts. The tool works in conjunction with Brex’s commercial card offering and offers a 1.6 percent APY return offered as part of its collaboration with Radius Bank, which provides payment processing and back-end software for the offering.