Banking-as-a-Service (BaaS) and embedded finance firm Synctera raised $15 million in new funding.
The financing brings Synctera’s total funding to $94 million and will help support the acceleration of its growth and meet the more complex needs of its customers, according to a Tuesday (March 11) press release.
“This is a vote of confidence that enables us to continue to drive scalable growth and excellence for our customers and community of banks,” Synctera co-founder and CEO Peter Hazlehurst said in the release.
The funding round was led by Fin Capital and Diagram Ventures, the release said. There was also participation from existing investors such as 1st & Main, Evolution and True Equity.
“Fin Capital has supported the Synctera team since its very early days,” Fin Capital founder and managing partner Logan Allin, also a member of the Synctera board, said in the release. “Their laser focus on doing things the right way, putting banks and end customers first, is why they’ve been able to build a world-class banking platform.”
The funding round was announced as embedded finance is reshaping the way banks, businesses and FinTechs interact with customers.
“Broadly defined, embedded finance moves banking, payments and lending into the non-financial realm, where apps and online interactions with firms can — and do — include buy now, pay later (BNPL) and other options at the point of sale,” PYMNTS reported Monday (March 10).
In this system, smartphones and tablets become doorways to commerce ecosystems that keep customers engaged while improving cash flow to businesses and their financial institutions.
There is an appeal for lenders as they can reach new customers and expand financial inclusion while using data to tailor offers and improve conversion rates.
The PYMNTS Intelligence report “Embedded Lending: From the Lender’s Perspective” found a growing recognition of the value of embedded lending options.
The report found that 47% of lenders offer only embedded lending and 31% offer some combination of embedded and other types of lending. Only 12% of firms are not offering embedded options.