Finxact Raises New Financing to Push Mobile Payments / Banking & More
Mobile banking has increasingly become a part of the landscape. With banks eager to take advantage of the cost savings involved in not having to hire tellers and such, and able to present it as something the customer wants—not inaccurately, either—it’s easy to see why there’s a greater push on toward mobile banking. Finxact recently announced that it raised a new $30 million in equity financing, thanks to a combination of old and new investors alike.
All of Finxact’s current investors came back for more, including such names as First Data and Woodforest National Bank. Additionally, however, the company also brought in new investment from several groups, including SunTrust Bank and the American Bankers Association.
Finxact looks to use the new $30 million to help drive the company’s growth, which is focused on its new Core as a Service option. Those using Core as a Service will be able to more readily launch new services and even completely migrate to real-time digital banking capabilities. Finxact also gets further edge, based on reports from Accenture managing director Brett Cooke, from the fact that many banks are unhappy with their current core provider. Offering new core services, therefore, could drive growth.
Finxact’s founder and CEO Frank Sanchez noted “…We’ve developed a platform that is functionally robust, reliable, scalable and highly efficient. We have multiple customer implementations currently underway and have raised capital to expand our capacity to go to market on a broader scale. We also plan to expand our integration activities with the financial services ecosystem, and to mitigate the risk and complexity historically associated with core system migrations.”
This represents an excellent opportunity for Finxact to get ahead in the market. After all, with banks unhappy and actively looking for a new provider, being able to step in with a superior product and even some basic marketing chops should go a long way toward giving Finxact a new slice of market share. Of course, it’s going to have to break inertia, which is always a tall order, but when banks are already unhappy they’ve done half the job themselves.
The future looks bright for Finxact, and clearly, a lot of investors thought so too. Only time will tell if they’re as right as they hoped.