‘Spotify Financial Services’ raises £ 50million

Nigel Verdon, Railsbank

Integrated funding platform Railsbank raised £ 50million in its last funding round.

The Railsbank platform is used by FinTechs, telecom operators, supermarkets and consumer brands to innovate rapidly and radically improve the way millions of consumers and SMEs access, use and manage their money.

The latest fundraiser was led by Anthos Capital and attracted a range of investors including Central Capital (the VC arm of Indonesia’s largest private bank), Cohen and Company (the founder of Bancorp) and the new funds from Chris Adelsbach, Outrun Ventures.

Existing investors also participated.

Railsbank will use the funds to further expand its Banking-as-a-Service, Cards-as-a-Service and Credit-as-a-Service products in Europe, Asia-Pacific and North America.

The company claims it is unique in having rails directly connected to the financial system, thereby bypassing the industry’s legacy infrastructure; and be both a regulated financial institution and a principal issuing member of Visa and Mastercard cards.

He maintains that many of the integrated finance and BaaS providers in the market today are just layers of software built on top of existing financial institutions.

This means that while customers benefit from improved APIs, they still need to support the legacy infrastructure, operations, risk policies, and working methods of the industry.

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“Think of Railsbank as the Internet’s financial services layer,” said Nigel Verdon, CEO and co-founder of Railsbank. “We are transforming the finance industry the same way Apple did for the music industry when they created iTunes.

“Too much of the current global financial services system is made up of aging legacy technologies and business processes, making it unnecessarily complicated, very 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 the deconstruction of financial services into individual digital components.

“Because we created these individual financial components, our customers can easily integrate financial products directly into their own customer experiences exactly when consumers and SMBs need financial services, not when traditional providers do. oblige.

“It will finally make financial services customer-centric and inclusive, rather than the current situation which is institution-centric and exclusive. “

Betsy Cohen, President of Fintech Masala and Founder of Bancorp, added: “The market has changed so rapidly since we founded the world’s first BaaS company, Bancorp.

“As we enter the integrated $ 7 trillion financial 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.

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