At a Glance
Railsbank, a fintech API provider, has received $70 million in equity financing from Anthos Capital. Railsbank will use the funds to expand its Embedded Finance offerings in Europe, Asia, and North America.
Railsbank, a provider of APIs for fintech services, has raised $70 million in equity funding led by Anthos Capital. Other participants include Central Capital, Cohen and Company, and Chris Adelsbach’s new fund Outrun Ventures.
Railsbank plans to utilize the money to extend its Embedded Finance solutions, Banking as a Service, Cards as a Service, and Credit as a Service, across Europe, Asia Pacific, and North America, allowing consumers to redesign and democratize financial services access.
Think of Railsbank as being the financial services layer of the Internet. 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.Nigel Verdon, CEO and co-founder of Railsbank
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.Nigel Verdon, CEO and co-founder of Railsbank
Railsbank features rails that connect directly to the financial system, circumventing the traditional infrastructure of the sector. It is also a licensed financial institution and a Visa and Mastercard primary card issuing member.
Many of today’s Embedded Finance and BaaS providers, according to Railsbank, are simply software overlays on top of older financial institutions. This implies that, while better APIs help consumers, they must still deal with old industry infrastructure, operations, risk rules, and working methods.
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.Betsy Cohen, chairman of Fintech Masala and founder of Bancorp
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.Chris Adelsbach, a managing partner of Outrun Ventures
Customers like fintech, telcos, supermarkets, and consumer brands utilize the Railsbank platform to innovate quickly and dramatically enhance the way millions of consumers and SMEs access, use, and manage their money.