The financing will support “Synctera’s work with sponsor banks and FinTechs as more banks get back in the game with BaaS,” the release said.
“Two years ago, banks asked me whether to be in this business at all,” Synctera Co-Founder and CEO Peter Hazlehurst said in the release. “Now they ask how to do it well. Banks answer for what happens in a FinTech program, so I love seeing them come back to the table. Our job is to make that easy.”
Banks and FinTechs need to be able to think of their platforms as akin to AWS, “durable and always available,” and the funding will help Synctera continue its work in strengthening these platforms, according to the release.
“Banks have long checked compliance by sampling,” the release said. “Synctera acquired Cable in April 2026, and Cable tests every control continuously, across banks, FinTechs and service providers, to show whether it works in practice and not just on paper.”
Synctera also invested in compliance by building a full program management team and set of processes, and by registering as a money services business regulated by the Financial Crimes Enforcement Network (FinCEN), according to the release.
“Embedded finance can bring banks deposits, fee income and assets generated through somebody else’s distribution,” but second-quarter earnings results demonstrated that banks don’t all want the same mix, PYMNTS reported in September.
Strategies from Fifth Third, First Internet Bank and FV Bank showed “how BaaS is being used for different purposes by the banks behind it,” the report said.
The PYMNTS Intelligence report, “Identity at Scale: Where KYC/KYB Touchpoints Create (or Contain) Agent Risk” found in March that businesses use digital identity verification across an average of 4.4 workflows. Customer login was the most common at 79.4%, followed by online transactions at 74.6%, fraud tracking at 70.6% and account opening at 67.7%.
“The research wasn’t BaaS-specific, but it showed how much identity activity now occurs after onboarding,” PYMNTS reported in September. “For banks operating embedded finance programs, that makes customer and transaction information an ongoing issue rather than something resolved when the account opens.”
