goddess, a startup that partners with banks to migrate their old stack and launch neobanks to attract new customers, today announced that it has raised $70 million in a Series D round led by Insight Partners. Banc Funds Company and Mendon Venture Partners also participated, as did Nymbus ConnectOne Bank and PeoplesBank clients.
According to CEO Jeffrey Kendall, the new capital will be used to invest in the scaling up of Jacksonville-based Nymbus’ various products and services, particularly its core transaction processing engine. and platform for commercial banking,
Kendall told TechCrunch in an email interview: “While banks and credit unions require robust technology systems to support operations, the market is limited to options that are typically over 30. year old. “In 2015, Nymbus launched a cloud-based core banking platform for financial institutions to provide a powerful alternative to legacy technology and reduce technical debt. The solution has evolved over time to streamline operations, offer new routes for growth, and enhance the overall customer experience.”
Co-founded in 2015 by Alex Lopatine and Scott Killoh, Nymbus emerged at a time when millennial and Gen Z customers were beginning to look for online alternatives to traditional banks. system — partly due to the desire to find better interest rates. According to a survey from GOBankingRates, nearly 30% of Americans aged 25-34 are currently using online banking, while 21% of Americans of all ages already use them.
No wonder banks are feeling pressure to adapt to a changing world by modernizing and digitizing both their operations and products. But most of them are not equipped to do so. According to a McKinsey in 2021 learnonly 30% of banks that have gone through digital transformation report successfully implementing their digital strategy, and the majority fall short of their stated goals — whether due to technical debt, knowledge IT architecture is hindered or the gap cannot be filled between the business and IT departments.
Nymbus aims to increase success rate with a cloud-based banking solution that provides traditional banking features such as API access, event-driven features and alerts, robotic process automation, etc. Banks and credit unions can integrate the functions they require to expand their digital capabilities, enhance back-office processes, or introduce new products.
There are several companies that offer this type of “banking as a service (BaaS)”, such as new payment, a Miami-based startup primarily focused on providing its API platform to customers in the Latin American market. There are also budrecently raised $80 million to expand its AI-based open banking platform, commonly used by banks to power lending engines.
In fact, BaaS has become the industry standard. A final in 2022 poll of US banking and financial institutions found that 86% agreed that BaaS was expected by customers, while nearly half (46%) had improved or implemented a BaaS solution in the past year. According to a estimateThe BaaS market is valued at around $20 billion by 2021 and could grow by more than 16% from 2022 to 2030.
But Nymbus stands out for its ability to offer a “fully regulated digital bank,” says Kendall, which includes a “unified data flow” that can be used for data analysis, decision making, and planning. strategy plan. Additionally, the modular nature of the platform can reduce costs without sacrificing “operational excellence,” as Kendall puts it — making it cost-effective.
“Nymbus’ product suite, which includes core processing, loan origination, account opening and digital channels, along with operational resources, empowers financial institutions of all sizes,” he said. scale to tap into new market segments and drive growth. “Ease of maintenance and speed to market are key for CIOs and this is what goddess the solution brings.”
That’s certainly a lot to promise. And Nymbus, when asked, declined to say how many customers the company currently serves and the company’s projected recurring revenue, which tends to be a (despite) predictor of success. though not a perfect tool). Still, despite his reluctance to lift the curtain on the company’s operations, Kendall insists that Nymbus – which now has about 200 full-time employees and contractors – is well-positioned to weather headwinds in the coming days. next month.
“General economic uncertainty and a slowdown in technology funding have made it harder to secure resources for expansion and innovation,” he said. “However, we have solid solutions in our portfolio to support the growing need of banks and credit unions to modernize and satisfy their customers anywhere. where — in the digital realm. We believe that as banks increasingly recognize the importance of modernization, there will be continued demand for our services.”