The American Bankers Association today announced a direct investment in Finxact, an emerging technology company that offers an innovative, open core banking platform for financial institutions. The investment in Finxact reflects ABA’s commitment to ensuring that member banks have the technology and tools they need to make the transition to banking’s digital future. The association’s board of directors, acting on a recommendation by ABA’s Venture Investment Committee, approved the investment.
Finxact’s unique Core as a Service platform, built for financial institutions of all sizes, enables banks to be more nimble and innovative by quickly adding new customer experiences and services to their core banking operations. The platform’s SaaS, cloud-native model allows banks to make proprietary enhancements and custom configurations, while also giving them 100-percent access to their data.
“We believe the team at Finxact is bringing to market not just a new core product but a new model for banks to deliver enhanced customer experiences,” said ABA President and CEO Rob Nichols. “ABA is pleased to take part in this historic opportunity to chart a new path for core banking services. We see this as an investment in the future of banking that will foster innovation and allow our members to adjust quickly to changing customer demands.”
“We appreciate the confidence ABA is showing in our business and technology to galvanize our shared vision of near-term and visionary change for the industry,” said Frank Sanchez, Finxact CEO and founder. “Our goal is to provide banks of all sizes a modern core banking platform that is functionally robust, reliable, scalable and highly efficient, and this partnership will help accelerate our go-to-market.”
“ABA’s Venture Investment Committee strongly supports this strategic investment in Finxact. It positions ABA at the center of core banking innovation which will ultimately benefit all ABA members and the industry as whole,” said Jim Reuter, chairman of ABA’s Venture Investment Committee and CEO of FirstBank in Denver.
Nichols noted that ABA members have frequently expressed frustration with core processing limitations since he took over as ABA president and CEO three years ago. ABA’s investment in Finxact follows a letter Nichols sent in October 2018 to the CEOs of the major core providers asking them to empower banks with the modern technology demanded by today’s competitive marketplace. Nichols also recently formed a Core Platform Committee, which is composed of bankers charged with identifying concrete ways to address these challenges.
“We are looking at every avenue—whether it’s investments in companies like Finxact, working with other core providers or endorsements of new products and services—to help all banks keep pace with the digital banking revolution underway,” said Nichols. “This commitment will help keep our members on the cutting edge and allow them to provide their customers the banking services they will want and need in the future.”
Based in Jacksonville, Fla., Finxact launched in 2017 and has secured multiple rounds of private funding from a range of strategic investors.
Learn more about Finxact’s new core banking solution at finxact.com.
The American Bankers Association is the voice of the nation’s $17 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $13 trillion in deposits and extend nearly $10 trillion in loans. Learn more at aba.com.