Financial operating system Mesh has raised $22 million in a Series A funding round.
The financing will allow Mesh to expand into new markets as it bolsters its embedded finance platform, according to a Thursday (Sept. 21) press release.
“We are witnessing a massive shift in which consumers are demanding complete and transparent control over their assets, and expecting the financial services that they use to give them that control,” said Mesh CEO and Co-founder Bam Azizi in the release. “Embedded finance is going to be a $7 trillion market opportunity. Mesh is at the forefront of this transformation for both sides of the marketplace — well-positioned to play a pivotal role in making every digital transaction embedded, secure and compliant.”
Mesh allows FinTechs and financial institutions to connect to their users’ financial accounts to perform functionalities like write and transfer, giving consumers a frictionless experience and enabling businesses to offer a better service to their customers, according to the release.
Mesh, established in 2020, began life as a consumer-facing platform named Front Finance before rebranding as an enterprise-focused financial platform that “bridges the gap between digital and traditional financial assets,” the release said.
In June, PYMNTS examined the way generative artificial intelligence (AI) is emerging as an optimization driver within embedded finance.
“… AI capabilities promise to redefine and better protect financial engagements through, among other things, next-generation personalization on the end-user side and identity verification and compliance automation on the provider side,” the report said.
Due to the exponential growth of eCommerce, digital wallets and embedded payments, today’s businesses need not only guard themselves against a growing threat of modern fraud, but also seek new ways to attract and retain customers within a landscape that is continuously evolving.
The hype around the AI technology will likely dwindle if no long-term, practical applications that showcase AI’s utility across industries emerge, the report said.
“By integrating AI technologies into their solutions, firms focusing on building future-fit digital engagement channels, particularly within payments and finance, can harness winning efficiencies that drive differentiation and accelerate sustainable growth,” per the report.
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