API developer Railsbank has raised $70m to develop its fintech-as-a-service platform, enabling it to expand on a global scale.
The fundraise was led by Anthos Capital and attracted investment from both new and existing supporters of the firm.
New investors included Central Capital (part of Indonesia’s largest privately held bank), Bancorp founders Cohen and Company, and prolific fintech investor Outrun Ventures.
Using this funding, Railsbank will offer various product development solutions to customers across banking, cards and credit.
Railsbank CEO and co-founder Nigel Verdon explained that this investment will be used to create individual financial components for clients, allowing them to easily embed these into their own customer experiences.
Pointing to the wider fintech-as-a-service market, the entrepreneur argued that despite improved APIs many customers still have to endure complications from underlying legacy financial institutions.
Verdon said: “Too much of the current global financial services system is made up of ageing legacy technology and operational processes, making it unnecessarily complicated, highly expensive and nearly impossible for innovators to create the ‘Spotify’ of financial services.“We are changing that at Railsbank by combining our ‘zero legacy’ platform with deconstructing financial services into individual digital components.”