Singapore Banking-as-a-Service (BaaS) startup RootAnt has ended a seed round with $1.46 million, according to a report by e27.
The lead investor was Linear Capital and further help came from KZM & Company Group, the report stated. With the new funding, RootAnt plans to expand in Singapore and also to the rest of Southeast Asia and Japan.
Through connecting enterprises and financial institutions (FIs) with new digital products, RootAnt aims to let banks and non-bank FIs integrate innovative practices like embedded financing to boost customer experiences, e27 reported. RootAnt provides research and development for further growth of BANCO Engine and the multi-tier financing platform for support of businesses within supply chain ecosystems.
Singapore's government has been angling more toward digital-only banks, particularly with the challenges of the pandemic when it comes to making payments. RootAnt Founder and CEO Lincoln Yin said the current economic crisis "requires innovation and customer-focused digital solutions that truly make a difference for a more sustainable economy," e27 reported.
"Through our digital and open banking technological capabilities for transaction banking, we aim to become a key player in this industry to continue supporting businesses with their financing demands as they recover from the impact of COVID-19," he said, according to the report.
BaaS aims to combat the long-stagnant nature of B2B payments, often still done in paper checks or even through fax. Unlike those methods, BaaS works to integrate more flexibility and speed, which have become customary for consumer payments, PYMNTS reported, via newer technology such as artificial intelligence (AI) and application programming interfaces (APIs).
These ideas have sometimes been met with resistance, with some banks wary that BaaS models could end up replacing them as technology continues advancing. But executives have begun to come around to the possibility, eyeing potential new sources of competition that could keep them fresh.
