News U.S. bank trade group, Accenture and others back fintech...

U.S. bank trade group, Accenture and others back fintech startup Finxact

-

- Advertisment -

NEW YORK (Reuters) – Accenture Plc, SunTrust Banks Inc and the American Bankers Association, a trade group for U.S. banks, said on Friday that they had joined a $30 million investment round in Finxact, a startup that develops the back-end technology used by banks to process some transactions.

U.S. bank trade group, Accenture and others back fintech startup Finxact

Visitors look at devices at Accenture stand at the Mobile World Congress in Barcelona, February 26, 2013. REUTERS/Albert Gea/File Photo

Existing investors, including Live Oak Ventures, First Data Corp, Woodforest National Bank and T.N. Incorporation Ltd of Thailand also participated in the round, the companies said.

Finxact plans to use the funding to develop its technology and grow its operations, Frank Sanchez, the company’s chief executive and founder, said in an interview.

The investment comes as banks of all sizes grapple with old technology infrastructure as they seek to offer more digital services to their customers. Many of these systems were built decades ago and are ill-equipped to handle services customers have come to expect in the internet age such instant peer-to-peer payments or real-time account balance updates.

Smaller banks often cite this issue as one of the biggest hurdles they face in competing with younger financial services providers or larger banks that can fund costly back-end replacements.

“I have heard from bankers across the country who wish they had more nimble and agile core processing platforms that allowed them to keep pace with customer demands,” ABA President and CEO Rob Nichols said via email. “We understand that a bank’s ability to innovate is highly dependent on its core processing platform.”

This is the second significant technology investment since Nichols’ took over as the ABA’s chief executive in 2015.

Florida-based Finxact says its more modern cloud-based platform is built to enable banks to offer better digital services to their customers and is less expensive to run than older systems.

“It is substantially more efficient to operate,” Sanchez said.

The company targets regional and community banks but also works with neo banks, or large banks who plan to migrate their old systems, Sanchez said.

Reporting by Anna Irrera; Editing by Cynthia Osterman

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Bitcoin and Other Cryptocurrencies – How Their Values Fluctuate

Are you interested in knowing more about Cryptocurrencies? Have you been surprised by the value of Bitcoin...

Understanding The Viability of Blockchain in Supply Chain Management

With the advent of modern technology, the business dynamics of various industries have evolved and transformed in...

Top 7 Porn Sites That Accept Bitcoin/Crypto

Bitcoin and other cryptocurrencies are not that exotic anymore. Ever since the big boom on the crypto...

“Chinachain” aims to connect hundreds of cities across China. Will it work?

If there’s ever a “Chinachain” for business, sanctified and supported by the state, the BSN ( Blockchain...
- Advertisement -

Top 10 BEST Crypto Trading Books for New Traders (2020)

We may receive a small revenue share if you purchase something from this guide - with...

Crypto Firm That Connects Exchanges and Banks Receives $5m Investment From Wells Fargo

Cryptocurrency startup Elliptic recently held a Series B funding round which was joined by a venture arm...

Must read

Bitcoin and Other Cryptocurrencies – How Their Values Fluctuate

Are you interested in knowing more about...

Understanding The Viability of Blockchain in Supply Chain Management

With the advent of modern technology, the...
- Advertisement -U.S. bank trade group, Accenture and others back fintech startup FinxactU.S. bank trade group, Accenture and others back fintech startup Finxact

You might also likeRELATED
Recommended to you