Author: David Penn

Identity Verification Specialist Socure Scores $100 Million in New Funding

Identity Verification Specialist Socure Scores $100 Million in New Funding
By David Penn Posted on
Categories: Funding, Socure

Digital identity verification company Socure announced that it has secured $100 million in Series D funding in a round led by Accel and featuring participation from the investment divisions of Citi and Wells Fargo. The investment brings the company’s total capital to more than $196 million.

“We are now more confident than ever that we will be the first company to eliminate identity fraud while unlocking complete and fully-automated coverage of every good ID,” Socure CEO Johnny Ayers said.

Also participating in the round were Commerce Ventures, Scale Venture Partners, Flint Capital, Strategic Capital, Synchrony, Sorenson, and Two Sigma Ventures. And while a specific new valuation was not included in the funding announcement, Socure’s Ayers hinted at the lofty level – and more – in congratulating his team on the company’s success.

“Reaching unicorn status is a testament to our dedicated and talented team which we are looking forward to rapidly scaling to meet demand,” Ayers said. “We are incredibly grateful for the chance to innovate and partner to solve this problem with some of the greatest companies in the world and are energized for the opportunities that lay ahead for Socure, especially as we make our march to a potential IPO.”

A Finovate alum since 2013, the company demonstrated its digital-to-physical identity verification technology at our fall conference in 2017. Socure’s predictive analytics platform marries AI and machine learning with trusted on- and offline data intelligence from a wide variety of sources to verify identities in real time. Operating in a number of verticals ranging from financial services and eCommerce to gaming and telecom, Socure has more than 350 customers including three of the top five banks, six of the top 10 card issuers, and more than 75 of the most innovative fintechs including Varo Money, Chime, and Stash.

More recently, Socure announced a partnership with advisory, tax, and assurance firm Baker Tilly that has since established that Socure’s Intelligent KYC product meets “and creates additional assurance” in providing USA PATRIOT Act compliance. Earlier in the year, Socure had announced that Intelligent KYC would be made available to digital gaming operators in eleven states.

Photo by Gnist Design from Pexels

Share this:

Send Post Twitter LinkedIn Facebook

FX, Fulton Bank, and Finzly’s Latest Partnership

FX, Fulton Bank, and Finzly’s Latest Partnership
By David Penn Posted on
Categories: Alumni profile

One of Finovate’s most recent alums, Finzly, announced this week that Fulton Bank has achieved significant operational efficiencies in its foreign exchange business courtesy of Finzly’s FX START and EXIM STAR solutions.

“International trade and foreign exchange can be a complex business for financial institutions of any size to manage successfully,” Finzly CEO and founder Booshan Rengachari said. “With one integration to the core, our FX STAR and EXIM STAR solutions help institutions like Fulton Bank to more efficiently, securely, and cost-effectively meet the needs of their customers.”

Finzly specializes in connecting banks and their customers via a real-time payment services hub and cloud-based bank operating system, BankOS, delivering a modern, digital banking experience. The company’s platform leverages open APIs and integrations into core technology to enable financial institutions to subscribe, try, and launch both Finzly’s and third-party fintech apps and solutions. With FX STAR, Finzly’s customers are able to execute foreign currency transactions, purchase foreign currencies in bulk using multi-currency accounts, as well as initiate payments. EXIM STAR serves as an international trade finance solution to help financial institutions manage the transaction lifecycle for commercial letters of credit, standby letters of credit, and documentary collections.

“We recognize Finzly as a proven provider that understands the unique business needs of regional financial institutions,” Fulton Bank International SVP and Manager Amy Sahm said. “Through the implementation of their user-friendly platform, our bank has been able to achieve better standard functionality across the board – from improved access to reports and confirming trades, to upgrades in investigation and reconciliation capabilities.”

Fulton Bank operates more than 223 financial centers in Pennsylvania and New Jersey, as well as in the mid-Atlantic states of Maryland, Delaware, and Virginia. The firm is a subsidiary of Fulton Financial Corporation, a financial holding company based in Lancaster, Pennsylvania, with $26 billion in assets.

Finzly made its Finovate debut in 2019. The Charlotte, North Carolina-based company most recently demonstrated its digital account opening solution at FinovateWest 2020, earning a Best of Show award from conference attendees. This year, in addition to its partnership with Fulton Bank, Finzly teamed up with Lead Bank, a Kansas City, Missouri-based “community-minded” commercial bank. Lead Bank implemented Finzly’s Payment Hub – part of Finzly’s Bank OS – to boost its own payment and digital capabilities.

“The ability to service our fintech and corporate clients with a Banking as a Service solution, as well as communicate messages to and from the core platform, is crucial to fulfilling and facilitating the requirements of Lead Bank and our channel partners,” Sheila Stratton, Director of Digital Strategy, Lead Bank said. “Finzly’s solution provides a modern technology platform in which our bank can expand payment capabilities while tapping a flexible and innovative solution to support our bank in delivering on the specialized needs of our clients.”

As well as partnerships, 2021 marked the launch of Finzly’s SWAP STAR solution. The new technology provides an end-to-end, sales, trading, and post-trade processing system for interest rate derivatives. SWAP STAR is available as an app within Finzly’s BankOS cloud-based bank operating system.

Photo by Andre Furtado from Pexels

Share this:

Send Post Twitter LinkedIn Facebook

SumUp Scores $895 Million in Debt Financing to Speed Growth

SumUp Scores $895 Million in Debt Financing to Speed Growth
By David Penn Posted on
Categories: Alumni News, Daily news, Funding, SumUp

Courtesy of Goldman Sachs, Temasek, Bain Capital Credit, Crestline, and funds managed by Oaktree Capital Management, international payments company SumUp has secured a $895 million (EUR 750 million) debt facility.

“As one of the fastest growing technology companies in the world, this cash injection – in addition to having the built-in option to expand the financing – will significantly accelerate the growth of our customer base, enhance SumUp’s technology leadership position, and drive the development of new services to support our merchants globally,” SumUp co-founder Marc-Alexander Christ said.

SumUp’s funding news comes at a time when the company is adding to its product portfolio in both Europe and the U.K. Much of this growth has come through acquisitions of POS software providers like London-based Goodtill, as well as Tiller, a digital service provider for gastronomy merchants. Separately, SumUp’s recent acquisition of Paysolut, a Lithuanian cure banking system provider will enable the company to fortify the banking services that it offers to its merchants.

SumUp supports more than three million merchants around the world. In addition to its expansion in Europe – going live in Romania to bring the total number of its European markets to 29 – the company has added to its interests in the Chilean market and launched operations in Columbia – the fourth largest economy in Latin America.

At the beginning of this year, SumUp announced that it was working with Shutterstock to give merchants the ability to add high-quality visual images to enhance their online storefronts.

“It’s important now more than ever that small businesses have the means to trade in the e-commerce space in order to take on larger competition,” SumUp European EVP Alex von Schirmeister said. “This partnership with Shutterstock will do just that, giving them more visibility to grow their customer bases.”

Founded in 2011, SumUp made its Finovate debut at FinovateEurope in 2013. Daniel Klein is CEO.

Photo by Nathan Cowley from Pexels

Share this:

Send Post Twitter LinkedIn Facebook

upSWOT Secures $4.3 Million in Seed Funding

upSWOT Secures $4.3 Million in Seed Funding
By David Penn Posted on
Categories: Alumni News, Daily news, Funding, UpSwot

upSWOT, a fintech that helps bring business intel to small business owners, has raised $4.3 million in seed funding. Among Finovate’s newest alums, upSWOT offers a data aggregation and business finance management platform that leverages cash flow predictions and business insights to enable banks, insurance companies, and other institutions to better serve their small business and mid-market customers.

“Managing a portfolio of SMB clients is a challenge for every bank, lender, and servicer,” upSWOT CEO Dmitry Norenko said. “Amidst a global pandemic, the financial industry must find new and innovative ways to support this vital customer segment. Our white-label solution helps leading national and community banks gain granular insights into their SMB customers launched within six weeks, and with minimal strain on internal IT or overlap with legacy systems.”

upSWOT’s funding round was led by Common Ocean, a venture capital firm that specializes in early-stage fintechs that are innovating in the financial wellness space. Also participating in the round were CFV Ventures, ICBA, First Southern National Bank, and SpeedUp Venture Group, as well as previous investors. upSWOT said that it would use the funding to grow its business in the U.S., add talent to support “a growing list of deployments with Tier 1 and Tier 2 financial institutions,” as well as continue to add features and functionality to its data aggregation and BFM platform.

upSWOT leverages APIs to aggregate data from more than 120 widely-used business solutions such as Quickbooks, Salesforce, Amazon, and Shopify and provide business owners with predictive analysis and actionable insights. Via partnerships with financial institutions, upSWOT’s goal is to help SMEs that have been left to “fend for themselves” by giving them “modern day tools” to help support cash flow management, debt funding, financial planning and accurate cash reporting.

Founded in 2019, upSWOT demonstrated its white-label platform at FinovateWest Digital last year. A graduate of the Berkeley SkyDeck accelerator, the company includes Raiffeisen Bank International, Privat Bank, D&B, and Mastercard among its customers.

Share this:

Send Post Twitter LinkedIn Facebook

Dubai Showcases Seed Stage Fintech Startups from MENA and Beyond

Dubai Showcases Seed Stage Fintech Startups from MENA and Beyond
By David Penn Posted on
Categories: Backbase, Finovate Global, List series, NTT Data, Temenos

This week for our Finovate Global Lists feature we congratulate the graduates of Startupbootcamp FinTech Dubai. Eleven startups successfully completed the MENA-based accelerator program in late February, wrapping up the three-month experience with a pitch opportunity before an audience of investors, corporate partners, mentors, and industry analysts.

“As the Demo Day has passed and the 11 startups of our third cohort continue their growth journeys – we are incredibly proud to welcome the 23 amazing founders of these startups as part of our global @sbcFinTech family!” Startupboootcamp Dubai announced via Twitter.

The graduates are:

  • Finllect: a UAE-based financial wellness app for Gen Zs.
  • Flaist: a digital transformation platform for banks.
  • Singular Capital: a digital asset mobile wallet based in Malaysia.
  • Open CBS: a Hong Kong-based, open and scalable, cloud-based core banking system for smaller FIs.
  • Absolute Collateral: a digital B2B capital markets trading platform based in the U.K.
  • Tajjir: a Jordanian startup that offers a stock trading software solution for retail investors.
  • Aura Technologies: an insurtech firm that enables non-insurance businesses to sell insurance to their customers.
  • CaaS (Compliance-as-a-Service): a regulatory reporting platform based in the U.K.
  • Stornest: a UAE-based digital legacy planner to support end of life planning.
  • Raseed: an investment platform that enables users in the UAE and Saudi Arabia to buy and sell U.S. stocks.
  • Kilde: a global private debt marketplace headquartered in Singapore.

Startupbootcamp FinTech is conducted in partnership with Dubai International Financial Centre (DIFC), Visa, HSBC, and Mashreq Bank. The program is open to fintech startups throughout the MENA region, as well as around the world, and offers expert-led Master Classes, tailored mentorships, as well as coworking space and living expense support for the duration of the program. Participants also benefit from access to corporate partners and an alumni growth program that helps startups remain networked after the program ends.

Since its launch in 2018, more than 30 fintech startups innovating in payments, lending, and Islamic digital banking count themselves as alumni of the accelerator. Startupbootcamp FinTech Dubai is part of an international network with more than 20 industry-focused programs for technology startups. The network boasts 950 startups accelerated – 41% of which were female-led – that have raised a combined $869 million (€ 727 million) in total funding.

Here is our look at fintech innovation around the world.

Latin America and the Caribbean

Asia-Pacific

Sub-Saharan Africa

Central and Eastern Europe

  • Berlin, Germany-based financial crime risk quantification company, Elucidate, secured EUR 2.5 million in pre-Series A funding.
  • Hellenic Bank unveiled its new mobile banking app, which was developed in partnership with Backbase.
  • Mobile payments company Settle launched in Bulgaria.

Middle East and Northern Africa

Central and Southern Asia

Photo by Ethan Wilkinson from Pexels

Share this:

Send Post Twitter LinkedIn Facebook

FinovateEurope Early Bird Discount Ends Friday

FinovateEurope Early Bird Discount Ends Friday
By David Penn Posted on
Categories: FinovateEurope 2021

Friday is the last day to save big on your ticket to this month’s all-digital FinovateEurope 2021. Register by March 12th and save GBP 100.00 off the price of our three-day, all-access pass.

Kicking off on Tuesday, March 23rd and running through Thursday, March 25th, FinovateEurope will feature a combination of innovative fintech demonstrations, insightful presentations, and an engaging new platform that makes digital networking as easy as an in-person meet ‘n’ greet. Morning coffee and afternoon cocktail not included.

Check out our conference agenda! Get to know our demoing companies! And then make sure to stop by our FinovateEurope registration page and reserve your spot today.

Share this:

Send Post Twitter LinkedIn Facebook

Cheese Launches to Support Financial Wellness for Asian Americans

Cheese Launches to Support Financial Wellness for Asian Americans
By David Penn Posted on
Categories: Daily news, Diversity in Fintech

The launch of Cheese, a digital banking platform dedicated to serving Asian American communities, is the latest instance of entrepreneurs seeking to translate a renewed sense of ethnic identity among many Americans into greater financial wellness, if not empowerment, for those in their communities.

“I have always envisioned launching a digital banking platform that someone like me could easily access but also serves a deeper purpose, with the power to positively impact Asian communities,” Cheese CEO Ken Lian said. “Cheese is that banking platform.”

Cheese includes Ifly.vc and Amplify among its chief investors, having raised $3.6 million in seed funding from the two firms in a round that also featured participation from former Wealthfront CEO Adam Nash and Zillow co-founder Spencer Rascoff. As part of the company’s offering, Cheese accountholders get a debit card (issued by Coastal Community Bank), two-day early advance pay with direct deposit, a 3% deposit bonus for referrals, a 0.3% annual percentage yield, and as much as 10% cash back on purchases at more than 10,000 participating merchants.

And as part of its pledge to support Asian American communities, Cheese will donate $100,000 to nonprofit organizations and community service programs that support Asian neighborhoods and small businesses – especially those impacted by COVID-19. Communities in San Francisco, Los Angeles, and New York City are among the first areas of focus.

The Asian American community is characterized by its diversity and its rapid growth; there are nearly 21 million Asian Americans in the United States. The relatively high income and education levels common in this community compared to other minority communities in the United States makes them an attractive opportunity for providers in financial services – from digital banking to wealth management.

At the same time, the rising number of incidents of violence against Asian Americans in 2021 are reminders that discrimination and racism against Asian Americans continues to be a challenge in a rapidly-diversifying country. In financial services, this issue often manifests itself most acutely with new Asian immigrants who may have language barriers or lack a credit history and struggle to even secure a bank account. Lian, who immigrated to the U.S. from China in 2008, knows this problem well.

“I had been declined multiple times for basic bank accounts,” Lian said, “even with an 800+ FICO score.”

Cheese is headquartered in Pasadena, California. The company was founded in 2019.

Photo by Tabitha Mort from Pexels

Share this:

Send Post Twitter LinkedIn Facebook

Fintech Innovation Expert Jeremy Balkin Joins JP Morgan Chase

Fintech Innovation Expert Jeremy Balkin Joins JP Morgan Chase
By David Penn Posted on
Categories: Daily news, Speaker series

Among the more popular members of our regular roster of Finovate speakers is Jeremy Balkin. An expert in retail bank management, fintech innovation, and strategic digital partnerships, Balkin spent six years as Head of Innovation with HSBC USA where he was part of the team that introduced humanoid robot Pepper to HSBC’s flagship Fifth Avenue branch.

So what’s new? Balkin announced today that he has joined JP Morgan Chase & Company as its new Head of Fintech and Innovation for Wholesale Payments. In his new capacity, Balkin will supervise fintech and innovation initiatives for wholesale payments, as well as help advise the company with regards to potential investments and partnerships with companies that can help JP Morgan become more effective in the space. JP Morgan’s wholesale payments business moves $7 trillion every day.

Balkin most recently shared his insights with Finovate audiences last fall as part of FinovateWest Digital. His discussion centered on how financial institutions can use innovations in customer experience to win new customers and better engage current ones. Adding new services, products, and rewards, Balkin argued, is a better strategy for most financial institutions than “the dead-end of price competition”. This customer-centric approach, which embraces fintech innovation, is all the more vital in a world in which Big Tech is effectively leveraging its digital platforms to offer financial services to its increasingly digitally-native customers.

In addition to his public appearances and work with banks and fintechs, Balkin is also an author. His books include Investing with Impact: Why Finance is a Force for Good and Millennialization of Everything: How to Win When Millennials Rule the World. We wish him luck in his new opportunity with JP Morgan Chase and look forward to seeing him on the Finovate stage again soon.

Photo by Alex Knight from Pexels

Share this:

Send Post Twitter LinkedIn Facebook

NYDIG Raises $200 Million in New Funding to Bring Bitcoin to the Banks

NYDIG Raises $200 Million in New Funding to Bring Bitcoin to the Banks
By David Penn Posted on
Categories: Daily news, Funding

We noted the $200 million fundraising announced by cryptocurrency solution provider NYDIG earlier this week. Given the investors involved, the amount invested, and the potential implications for further popularization of digital assets, we thought the round was worth a closer look.

New York-based NYDIG is a leading provider of technology and investment solutions for Bitcoin. Founded in 2017 by Robert Gutmann (CEO) and Ross Stevens (Executive Chairman), NYDIG offers banks, corporations, insurers, and high net worth (HNW) individuals financing, custody, execution, and research and advisory services to help them manage their Bitcoin holdings. NYDIG also offers industry-leading expertise in the derivatives markets for institutional investors seeking customized opportunities, from generating yield to establishing hedges.

This week’s financing takes the company’s total funding to $305 million, according to Crunchbase. The strategic partners involved included Stone Ridge Holdings Group, Morgan Stanley, New York Life, MassMutual, Soros Fund Management, FS Investments, Bessemer Venture Partners, and FinTech Collective.

“These partnerships leave no doubt that institutional adoption of Bitcoin has arrived and, further, that NYDIG is the partner of choice for serious financial services firms with the highest fiduciary and diligence standards,” Gutmann said. He announced that the company plans to deliver “an explosion of innovation in Bitcoin products and services” over the balance of the year.

Gutmann also added that the round’s investors will help NYDIG on “strategic initiatives” ranging from investment management and banking to clean energy and insurance. To underscore the point, the company’s statement also reported that life, annuity, and property & casualty insurers currently own in aggregate more than $1 billion of direct and indirect Bitcoin exposure. This exposure is both facilitated exclusively by NYDIG and is held in the firm’s secure, audited, and insured institutional custody platform.

NYDIG has partnered with a number of Finovate alums in recent months. This year alone, the company teamed up with Best of Show winner Kasasa to bring bitcoin wallet functionality to community banks and credit unions. Also in February, NYDIG collaborated with NYMBUS to help financial institutions add Bitcoin products and services to their digital offerings.

“As a notable advocate for financial institutions, Nymbus stood out as a partner to take our vision for Bitcoin and banking to the next level,” NYDIG Head of Bank Solutions Patrick Sells said when the partnership was announced. “As a former banker and technology evangelist, I couldn’t be more excited to bring Bitcoin and banking together, and I see it as a win/win.”

Share this:

Send Post Twitter LinkedIn Facebook

M1 Finance Scores $75 Million in Series D

M1 Finance Scores $75 Million in Series D
By David Penn Posted on
Categories: Funding, M1 Finance

M1 Finance has raised another $75 million in funding to support its finance super app, which combines investing, borrowing, and spending functionality into a single platform. The Series D round was led by Coatue, and featured participation from Left Lane Capital, Jump Capital, and Clocktower Technology Ventures.

The investment brings M1 Finance’s total capital to more than $173 million, $153 million of which was raised in just the last ten months.

In a blog post, company founder and CEO Brian Barnes said that the funding will help M1 Finance add talent and “invest in innovation that furthers our mission.” Barnes wrote that rather than merely “incentivizing trading”, the goal of M1 Finance is to offer a “holistic, smart platform that encourages and enables you to practice good financial habits.” He added that this meant innovating in all areas of the customer experience – from more tools to better interfaces to a more seamless integration “with your whole financial life.”

M1 Finance’s platform includes three components: M1 Invest enables users to build their own investment portfolio for free and manage the portfolio with automatic, one-click rebalancing. Fractional share investing is also available. M1 Borrow offers a flexible portfolio line of credit for accounts of $10,000 or more, and M1 Spend gives users a checking account to make it easier for them to repay their loans on time, as well as set up direct deposits and schedule automatic investments.

In his blog post, Barnes also shared some recent milestones for the Chicago, Illinois-based company. M1 Finance topped $3 billion in client assets last month, reported a 3x increase in new sign-ups in January 2021 compared to the previous month, and noted a 2.5x growth in new sign-ups between January 26 and February 8 compared to the previous two weeks.

“We’re building (an) experience for people with thousands and millions,” he wrote. “Whether you have $50 million or $50,000 we want you to have the right tools, the right education, and the right control over your future.”

A Finovate alum since its conference debut in 2016, M1 Finance has partnered with the likes of Rackspace Technology and, in December, launched a new “smart transfers” feature. The fully customizable solution enables those subscribed to M1 Finance’s M1 Plus program to set “threshold-based rules to cascade available funds between M1 accounts.”

Photo by cottonbro from Pexels

Share this:

Send Post Twitter LinkedIn Facebook

Still Moven: Digital Onboarding Alliance Underscores Financial Wellness Pivot

Still Moven: Digital Onboarding Alliance Underscores Financial Wellness Pivot
By David Penn Posted on
Categories: Alumni News, Daily news, Digital Onboarding, Moven

In a world of rebrands, reintroductions, and redirections, it is always impressive to see a pivot that sticks.

Moven, which announced its transition toward financial wellness and distributed smart banking a year ago this month, has teamed up with fellow Finovate alum Digital Onboarding. Together, the two fintechs will support user adoption of a turn-key digital bank-in-a-box, making it easier for banks and financial institutions to improve customer engagement on digital platforms.

“The pace of digital disruption in the banking industry is only going to quicken, and financial institutions have to rethink how they leverage digital channels,” Moven founder and Executive Chairman Brett King said. “Providing a new channel is one thing; getting existing and new customers to embrace that channel is an entirely different challenge, and frankly a tremendous opportunity for bankers.”

The partnership brings together Moven’s ability to provide users with data-driven, actionable insights into their financial health with Digital Onboarding’s digital messaging, personalized microsites, and proprietary action widgets to make account-related services more accessible and streamlined. The collaboration recognizes the challenge that digital banks represent to traditional banks and credit unions, and seeks to give them the tools to keep their own customers and better engage new, more digitally-demanding, ones.

“Neobanks are raising billions of dollars and investing heavily in advertising to lure U.S, consumers away from traditional financial institutions,” Digital Onboarding CEO Ted Brown said. “Now is the time for banks and credit unions to double down on investing in their existing customer and member bases. I am excited to collaborate with Moven to help banks and credit unions build long-lasting relationships by motivating financially health behaviors.”

The collaboration between Moven and Digital Onboarding is the most recent, big partnership Moven has entered into since its pivot. Late last year, the company announced that it was working on a turnkey digital bank-in-a-box project with another Finovate alum, Q2. Picking up its second patent for its financial wellness technology in January, Moven also has worked recently with New York-based digital asset manager NYDIG and Japan-based Kyushu Financial Group.

Speaking of NYDIG, the company secured $200 million in funding earlier this week in a round led by Stone Ridge Holdings Group and other strategic partners.

Moven will leverage its relationship with NYDIG to offer banks plugins that will enable them to offer bitcoin-related products. Moven CEO and CRO Kesh Talwar put the NYDIG partnership in the broader context of fintech and cryptocurrency’s parallel, but distinct paths toward prominence. “The growth of fintech platforms and of cryptocurrencies have both been striking, but the two worlds have largely been separate.” And because consumers are most likely to try new technologies when they are introduced by institutions they trust, Talwar sees a clear path to boosting cryptocurrency adoption by enabling banks to play a bigger part.

NYDIG Head of Bank Solutions Patrick Sells concurred. “Many banks have felt left behind with the rise of fintech, but today, banks have the opportunity to capitalize on the fact that their customers strongly prefer them to be in the lead when it comes to Bitcoin.”

Photo by Budgeron Bach from Pexels

Share this:

Send Post Twitter LinkedIn Facebook

U.K. Challenger Starling Bank Scores $376 Million in New Funding

U.K. Challenger Starling Bank Scores $376 Million in New Funding
By David Penn Posted on
Categories: Daily news, Funding

In its biggest fundraising to date, U.K.-based challenger bank Starling Bank has secured ($376 million) £270m in funding. The Series D round was led by Fidelity Management and Research. Also participating in investment were the Qatar Investment Authority, RPMI Railpen, and Millennium Management.

Starling hopes to use the capital to grow its lending book and to expand throughout Europe. M&A activity is also on the table for the digital challenger. The fundraising, which remains subject to regulatory approval, will give the neobank a pre-money valuation of £1.1 billion.

Founded by Anne Boden and headquartered in London, Starling now has more than two million accounts, including 300,000 SME business accounts. Starling Bank says that it has 5% of the small business market in the country, as well as deposits of more than £5.4 billion. The firm has made loans valued at more than £2 billion – much of that while participating in the government’s COVID financial relief programs.

“Digital banking has reached a tipping point,” Boden said in a statement announcing the investment. “Customers now expect a fairer, smarter and more human alternative to the banks of the past and that is what we are giving them at Starling as we continue to grow and add new products and services. Our new investors will bring a wealth of experience as we enter the next stage of growth, while the continued support of our existing backers represents a huge vote of confidence.”

Starling reached profitability late last year. Since then, the company has forged partnerships with iZettle, Dingy Insurance, PensionBee, and Finovate alum SumUp. Boden has hinted recently that an IPO could be “two to three years” away for the digital challenger. “I didn’t do all of this to sell out to a big bank,” she said.

Photo by David Jakab from Pexels

Share this:

Send Post Twitter LinkedIn Facebook