Banking technology startup Zeta dominated the fintech headlines yesterday. The company raised $250 million, which boosted its valuation up over $1.45 billion.
The funding round was led by Softbank with participation from Sodexo. This is Zeta’s third investment round since it was founded in 2015. Notably, the cash brings the company into unicorn status.
So what is it about Zeta that has struck a chord in the fintech industry? The company offers a full-stack, cloud-native, API-ready core banking and transaction processing platform. The tools enable legacy banks to issue credit, debit, and prepaid offerings and provide modern fintech products to both retail and commercial clients.
In addition to its credit, debit, and prepaid card processing capabilities, Zeta’s products include:
- Zeta Tachyon Loans – a BNPL and personal loan management platform
- Zeta Tachyon Deposits – a modern core for DDA, checking accounts, savings accounts, and deposits
- Zeta Tachyon Mobile – a ready-made, customizable mobile app for credit cards, checking accounts, prepaid, loans, BNPL, personal finance management, and more
Zeta’s tools help traditional banks compete with the onslaught of digital banks that are bringing consumers fresh new products and services to today’s digital-first customers. Those tools also help fintechs stay competitive in a world of super-apps by focusing on their core competencies.
“Most banks are using decades old software built at a time when Mainframes and Cobol were in vogue. As a result they have been slow to innovate and provide poor user experiences,” said Zeta CEO Bhavin Turakhia. “With Zeta, FIs can leverage a modern, cloud native platform and improve speed to market, agility, cost to income ratio and user experience.”
Turakhia showcased Zeta’s capabilities at FinovateWest 2020 last fall in his Best of Show-winning demo.
Zeta counts 10 banks and 25 fintechs across eight countries among its customers. The company plans to use the new funding to boost its growth in the U.S. and Europe by scaling its operations, team, and platform.
Photo by De’Andre Bush on Unsplash