Infinant has raised $15 million in a Series A funding round to expand its cloud-based bank platform.
The company will use the new funding to enhance its products, align with regulatory requirements and help banks scale new financial solutions, Infinant said in a Dec. 23 press release.
“Financial institutions are realizing significant and responsible growth by diversifying their deposit gathering and payment channels by decoupling from the core and distributing their products across new platforms,” Infinant CEO Riaz Syed said in the release.
Infinant’s cloud-based platform, Interlace, enables banks to launch and scale digital and embedded programs under their own control, according to the release.
With a bank-owned platform, each bank has operational and regulatory control of their programs, including ledger, operations and compliance, the release said.
Infinant works with banks to launch digital banks into niche markets, embed financial products and payments into business vertical applications, expand merchant and independent sales organization (ISO) relationships through emerging payment and instant funding offerings, deliver new products to small and medium-sized business (SMB) and commercial customers via sub-accounting, and scale partner banking or banking-as-a-service (SaaS) programs, per the release.
John Philpott, partner at Fintop Capital and a member of Jam Fintop Banktech’s investment committee, which led the funding round, said in the release that Infinant allows banks to scale these programs while aligning with regulatory requirements.
“Since our initial investment, we have seen a dramatic shift in the market and the approach to embedded banking and banking-as-a-service which has confirmed the growth opportunity of these business models along with a regulatory requirement for banks to maintain oversight of the customers, accounts and the ledger,” Philpott said.
Payment facilitators (PayFacs), independent software vendors (ISVs) and marketplaces in the retail arena are prioritizing embedded finance innovation, according to the PYMNTS Intelligence and Fiserv collaboration, “How Embedded Finance Drives Retail Platform Innovation.”
The report found that 58% of marketplaces in the retail sector plan to expand or start offering embedded finance products; 60% of PayFacs are highly interested in expanding or enhancing loyalty rewards for their embedded finance offerings; and 86% of ISVs are very or extremely interested in enhancing digital wallet payment acceptance offerings.