London-based international provider for banks, insurance and financial service companies, FintechOS announced that it has received $10 million in funding from International Finance Corporation (IFC). IFC is a member of the World Bank Group and a sister organization of the World Bank. The funding provided by IFC as a part of FintechOS’s $60 million Series B capital funding round.
The fintech’s Series B funding round was led by Draper Esprit. Apart from IFC and Draper Esprit, existing investors Gapminder Ventures, Early Digital East, OTB Ventures and LAUNCHub Ventures also contributed to the funding.
FintechOS is a high-tech orgnization that delivers delivering a tech-as-a-service platform for banks, enterprise financial services organizations and insurance companies that need to accelerate innovation, retain customers and drive growth via digital transformation processes.
Where will FintehOS use the funding
The funding will support FintechOS in accelerating and boosting financial inclusion worldwide by helping organizations and institutions improve access to financial services while making them much more affordable and increase impact on underbanked and unbanked communities.
Through this investment, FintechOS will be bringing agile, affordable tech solutions to all financial institutions. This includes those in the developing world, where International Finance Corporation has a sizable footprint. Additionally, IFC will be supporting the expansion strategy of FintechOS by facilitating collaboration and partnerships with its wide network of bank partners and clients.
FintechOS co-Founder and CEO, Teodor Blidarus said that financial technology today is frequently an inhibitor instead of an enabler of inclusion. Large and small financial institutions simply do not have the appropriate tools available at the best price point in order to meet market demands. Powerful emerging technologies, such as low-code, just are not being utilised and this impacts those at the bottom of the pyramid the most.
Founded in 2017 by Teodor Blidarus and Sergiu Negut, FintechOS’ approach helps institutions boost financial inclusion The company has a self-service, low-code approach that empowers organization and institutions to create, test as well as scale online, digital products that are built for unbanked communities in just a few weeks.
The cost of financial services are usually too high for small firms and low-income households. FintechOS has lowered the cost of technology and enhancing operational efficiencies helping institutions in building services in a cost effective way as well as passing the savings onto customers
Why IFC invested in FintechOS
Investment Officer at IFC, Henrik Bläute said that online financial services are key and critical in boosting financial inclusion as well as driving inclusive growth. While COVID-19 has accelerated the use of these services, the pandemic has also brought under the light the fact that many financial institutions are struggling to overcome the digital transformation challenges required to “include the financially excluded.”
After conducting its due diligence, IFC has made the decision of investing in FintechOS as IFC recognizes the potential to expedite the change that is occurring in the fintech and financial services industry globally. By fastening digitalization, financial institutions become more capable of serving more unbanked and underbanked individuals and communities,” Bläute added.
For more latest IT news and updates, keep reading iTMunch
Image Courtesy: Image by rawpixel.com