With the rise of challenger banks and neobanks, community financial institutions in the United States continue to face existential threats from fintech companies, national banks, and accounting package vendors that are offering a competitive suite of payment solutions to SMBs. Now, one tech startup is on a mission to help millions of small businesses through partnering with banks and financial institutions to provide technology designed to make business banking better.
Enter Bankifi, a UK fintech startup that provides an open cash management platform and architecture that transform a Bank’s current digital banking infrastructure to address the specific issues facing small and medium businesses (SMEs).
Today, BankiFi announced it has secured $4.8 million(£4 million) of additional investment to continue its global expansion, with a focus on North America following the recent establishment of a US sales office. This strategic growth investment gives BankiFi the capital to bring its industry-leading embedded banking platform to more than two million SMEs across four continents by 2024 through Bank partners.
This funding is led by Praetura Ventures, with participation from other investors including Greater Manchester Combined Authority (GMCA). The investment is proof of investors’ confidence in BankiFi’s ability to help financial institutions across the globe benefit from its technology.
“With investments into technology companies starting to slow, this is a huge endorsement from our investors that proves we’re doing the right things as a business at BankiFi,” said Chris Fry, BankiFi CFO. “This latest investment means we can continue our global expansion and focus on supporting banks to make all aspects of cash management and payments easier for SMEs everywhere.”
“BankiFi has proven to be an industry-leading open cash management provider in Europe, Australia, New Zealand and other countries,” said David Foreman, managing director of Praetura Ventures. “Now that they have launched in North America, BankiFi has an opportunity for dramatic growth. We’re looking forward to continuing our partnership and seeing their solutions continue to transform bank channels, in order to support SMEs around the world.”
Founded in 2018 by Mark Hartley, BankiFi aims to help over two million SMEs globally by 2024 by partnering with banks and financial institutions to provide technology designed to make business banking better. BankiFi’s platform enables financial institutions to provide a set of integrated services – accounting, invoicing and payments – designed around the processes SME and trade customers use to run their business.
The fintech startup also equips banks and financial institutions to become customer-centric, rather than product-centric, increasing their revenues (direct and through actionable insights) and reducing costs. BankiFi’s offices are in Manchester, Ohio, Sydney, and Antwerp.