The American Bankers Association (ABA), Accenture Ventures, and SunTrust Bank have joined in a $30 million financing round for SaaS-based core banking startup Finxact.
Existing investors, including Live Oak Ventures, First Data, Woodforest National Bank and T.N. Incorporation Ltd of Thailand also participated in the round,
Finxact has a mission to redefine the core banking market by leveraging API-based integration with selected partner vendors to build a technology bundle more in keeping with today's modern digital world. The company was set up by core banking veterans Frank and Mike Sanchez, the brains behind Sanchez Computer Associates, which was ultimately acquired for $184 million in 2004 by FIS.
“We started Finxact in the beginning of 2017, and we have focused on building a banking system of record that can effectively replace legacy core systems and also serve as a platform for rapidly evolving digital banking requirements,” says Frank Sanchez, Finxact CEO and founder. “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.”
He says the company is currently working with multiple US and international financial institutions, from de novo banks to top-tier banks, on projects ranging from full bank conversions to digital-only initiatives.
Members of the Finxact ecosystem, include systems integrators like Accenture, cloud providers such as Amazon Web Services and a host of vendors covering the full gamut of record-keeping requirements for bank ledgers. With plug and play capability, banks can re-route their back-end wiring as their needs change.
Brett Goode, a managing director at Accenture, says: “The core banking market in the US is set to experience significant disruption in the near future, as banks continue to grow frustrated with their existing core providers and advances in cloud and digital technology make it possible to upgrade aging systems without doing a full rip and replace.”