Embedded听finance platform听Railsbank听has raised 拢50 million in its latest funding round.听
The听Railsbank听platform is used by听FinTechs, telcos, supermarkets and consumer brands to innovate fast and radically improve the way millions of consumers and SMEs access, use and manage their money.听
The latest fundraise was led by Anthos Capital and attracted a range of investors including Central Capital (VC arm of Indonesia鈥檚 largest privately held bank), Cohen and Company (the founder of Bancorp), and Chris听Adelsbach鈥檚听new fund Outrun Ventures.听听
Existing investors also participated.听
Railsbank听will use the funds to further expand its听Banking-as-a-Service, Cards-as-a-Service and Credit-as-a-Service听products听across Europe, Asia Pacific and North America.听
The company says it is unique for听having rails directly connected into the financial system,听thus bypassing the industry legacy infrastructure; and being both a regulated financial institution and听principle听card-issuing member of Visa and Mastercard.听听
It maintains that many of the听embedded听finance and BaaS providers in the market today are just software layers sitting on top of legacy financial institutions.听听
This means that although customers benefit from improved APIs, they still听have to听endure the underlying industry legacy infrastructure, operations, risk policies and ways of working.听
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鈥淭hink of听Railsbank听as being the financial services layer of the听internet,鈥� said Nigel Verdon, CEO and co-founder of听Railsbank. 鈥淲e are transforming the finance industry in the same way that Apple did to the music industry when they created iTunes.听听
鈥淭oo much of the current global financial services system is made up of aging legacy technology and operational processes, making it unnecessarily complicated, highly expensive and nearly impossible for innovators to create the 鈥楽potify of financial听services鈥�.听
鈥淲e are changing that at听Railsbank听by combining our 鈥榸ero legacy鈥� platform with deconstructing financial services into individual digital components.听听
鈥淏ecause we have created these individual financial components, our customers can easily embed financial products directly into their own customer experiences at exactly the point where consumers and SMEs need financial services, not at the point when traditional providers forced them to.听听
鈥淭his will finally make financial services customer centric and inclusive, rather than the situation today which is institution centric and exclusive.鈥�听
Betsy Cohen, Chairman of Fintech Masala and founder of Bancorp, added: 鈥淭he market has evolved so rapidly since we founded the world鈥檚 first BaaS business, the Bancorp.听听
鈥淎s we move into the $7 trillion embedded finance market, it has been great watching听Railsbank’s听growth story. With this investment, it’s a privilege to continue to be part of the journey with a global leader like听Railsbank.鈥�