A significant step in the continued expansion of Railsbank's Banking as a Service (BaaS), Cards as a Service (Cards as a Service), and Credit as a Service (CaaS) offerings, as well as its Embedded Finance proposition, across Europe, Asia Pacific, and North America.
FREMONT, CA: Railsbank, the leading global platform for embedded finance, completes a USD$70 million funding round.
Anthos Capital leads the latest round of financing, which attracted a diverse group of investors, including Central Capital (the venture capital arm of Indonesia's largest privately held bank), Cohen and Company (the founders of Bancorp), and Chris Adelsbach's new fund Outrun Ventures. Existing investors are also a part of the transaction.
Railsbank intends to use the funds to continue expanding its various Embedded Finance products (Banking as a Service, Cards as a Service, and Credit as a Service) across Europe, Asia Pacific, and North America to assist its customers in remodeling and to democratize access to the financial services industry. Railsbank's platform enables customers such as fintechs, telcos, supermarkets, and consumer brands to innovate rapidly and significantly improve how millions of consumers and small businesses access, use, and manage their money.
Railsbank is unique in the Embedded Finance market because it is the only truly global platform; because it connects rails directly to the financial system, bypassing the industry's legacy infrastructure; and because it is both a regulated financial institution a primary card issuing member of Visa and Mastercard. It argues that many of the embedded finance and business service providers on the market today are simply software layers atop legacy financial institutions. This means that, while customers benefit from enhanced APIs, they must still contend with the industry's legacy infrastructure, operations, risk management policies, and ways of working.
“Think of Railsbank as being the financial services layer of the Internet,” says Nigel Verdon, CEO, and co-founder of Railsbank. “We are transforming the finance industry in the same way that Apple did to the music industry when they created iTunes. Too 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 ‘Spotify’ of financial services.”
“We are changing that at Railsbank by combining our ‘zero legacy’ platform with deconstructing financial services into individual digital components. Because 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. This will finally make financial services customer centric and inclusive, rather than the situation today which is institution centric and exclusive.”
Betsy Cohen, Chairman of Fintech Masala and founder of Bancorp, adds, “The market has evolved so rapidly since we founded the world’s first BaaS business, the Bancorp. As we move into the $7 trillion embedded finance market, it has been great watching Railsbank's growth story. With this investment, it's a privilege to continue to be part of the journey with a global leader like Railsbank.”
Chris Adelsbach, the Managing Partner of Outrun Ventures, comments, "Outrun Ventures are thrilled to support Railsbank in their recent financing. I've had the benefit of being on the front-line of Railsbank as an early investor and Advisory Board member and have been incredibly impressed by their growth. More importantly, as an early stage fintech investor, I've witnessed a remarkable change in the volume of companies that are building next generation businesses using Railsbank. I speak to dozens of founders every week and I've rarely gone through a week where a company doesn't tell me that they are working with Railsbank. When I asked them 'why', their collective responses gave me the conviction to make a later stage investment. Embedded finance makes financial services far more accessible for customers and Railsbank has a solution that is in a league of its own.”