Swan Raises $43 Million to Expand Embedded Banking Services

French FinTech Swan has raised $43 million to expand its embedded banking offering.

The company says the new funding, announced in a Thursday (Jan. 30) blog post, will allow it to hire more staff, enter new markets such as Belgium and the U.K., and create products tailored for small and medium-sized businesses (SMBs).

“This funding isn’t just about growth, it’s a reflection of a larger shift happening in the industry,” Swan said in the blog post.

“Embedded banking is becoming the new norm. Businesses that integrate financial services into their products aren’t just innovating, they’re creating a competitive edge. They’re building more engaging user experiences, unlocking new revenue streams, and staying ahead in a rapidly evolving market.”

The funding is a continuation of Swan’s Series B round from 2023, which raised $39 million. Since then, the company has launched in the Netherlands and Italy, which it calls two “key markets” for its localized banking offerings.

“By offering local IBANs and payment solutions designed for each European market, we’re not just removing barriers — we’re building trust and making embedded banking as seamless and intuitive as it should be,” Swan said.

Last year, Swan announced it had integrated Wise Platform to let its customers send and receive money from more than 190 countries.

Research by PYMNTS Intelligence has found that 37% of SMBs are highly interested in switching to providers that offer embedded lending options. However, the same study also found that one of the greatest opportunities for the lenders could actually be those same SMBs.

“That’s because, while lenders across global economies are offering embedded lending, the data shows that the typical lender serving SMBs has not fully embraced its potential,” PYMNTS wrote in July of last year.

In other embedded banking news, PYMNTS spoke last month with Ingo Payments CEO Drew Edwards on the changing rules for bank-FinTech partnerships.

Edwards told PYMNTS CEO Karen Webster that the chief drivers prioritized by investors and startups have been “the customer experience and customer acquisition,” with strategies focused on removing barriers to growth while making accounts easy and quick to set up.

The basics of safe banking practices have been less prioritized, with businesses that focus solely on growth and customer acquisition suffering. But the firms that can focus on the cores of safe banking, with customer experiences always top of mind (but not at the expense of those tenets), will bring about healthy customer acquisition, he said.

“The operating rules that keep you out of trouble and mean success versus failure are different now,” he said, adding that “what’s changing are the rules around how banks play with FinTechs.”