SynapseFI is making public what insiders have known for months: the Bay Area banking platform provider closed a $17 million Series A late last year. Trinity Ventures and Core Innovation Capital led the round.
In a blog post thanking the customers who “build awesome products on top of us and pay our bills,” company CEO and founder Sankaet Pathak explained both what SynapseFI does and what he called “our super secret plan” to democratize banking.
“Our super secret plan is to build a better operating system for banking that is less expensive to maintain and easy to innovate on top of,” he wrote. “Then to change banking from a lending or transactions business to a SaaS business.” In order to do this, SynapseFI focuses on three areas: back office automation to lower per customer costs, vertical integration of all products and services, and behavioral economic research to help firms build consumer-friendly financial solutions.
“I am beyond excited for what lies ahead,” Pathak wrote. “The capital infusion is not just a testament to the team executing well; it is also a testament to the need for democratized financial access for all people – regardless if they hold ten dollars in their bank account, or ten million.”
Founded in 2015, SynapseFI demonstrated its white label loan issuance solution at FinovateSpring 2018. The solution provides origination and servicing of unsecured consumer and business loans, including customizable decisioning, automated compliance, and smart notifications. With a goal of simplifying banking, SynapseFI provides an intuitively-designed bank with more efficient, automated back office and access to key services for all customers.
SynapseFI began the year with news that it would support interchange processing for debit and credit card transactions. Last month the company announced new custodial accounts for escrow, payment, and crowdfunding applications, as well as a new multi-bank savings account offering that enables per user FDIC coverage of up to $16 million.
In May SynapseFI unveiled its first Crypto Wallet for Bitcoin (recently updated). The company began the year with the launch of its Design Lab, which helps developers improve the UX for their financial solutions.