Banking as a Service (BaaS) company Synctera announced today that it is partnering with National Bank of Canada to help companies build and launch FinTech apps and embedded banking products in Canada.
Synctera announced a $15 million strategic investment, led by NAventures (the corporate venture arm of National Bank of Canada), with participation from The Banc Funds (a private equity investor), and sponsor bank partners Veritex Community Bank, Midland States Bank, and Emigrant Bank.
Synctera partners with National Bank of Canada to help companies launch financial products in Canada
Since 2020, Synctera has been helping companies acquire customers, deepen customer relationships, and access new revenue streams by launching innovative banking products in the United States. Synctera’s end-to-end BaaS platform enables companies of all sizes to build and launch FinTech apps and embedded banking products faster, more easily, and at a significantly lower cost compared to building in-house or with multiple vendors and partners.
Synctera enters the Canadian market at a time when there is high demand for innovative financial products to disrupt the $20 trillion banking industry. “Canada is on the precipice of open banking, and many Canadians have a lot of pent-up demand for the financial innovation that often comes from FinTechs and non-financial institutions,” said Kris Hansen, Chief Technology Officer and co-founder of Synctera. “This new partnership with National Bank of Canada helps us continue to unlock human potential through financial innovation by bringing BaaS to customer-focused entrepreneurs and enterprises in Canada.”
Today, Synctera has over 50 employees in Canada. One of Synctera’s Canadian customers, Float, recently announced it quadrupled its revenue over 2022 and is steadily growing its U.S. business.
“National Bank of Canada is a strong supporter of bank-FinTech collaboration, and we look forward to partnering with Synctera to introduce an anticipated offering into the Canadian market,” said Philippe Daoust, Managing Director of NAventures.
“Synctera’s transparent and compliance-focused platform helps bridge the gaps between financial institutions that seek to power indirect financial offerings and companies that seek to build, launch, and scale financial products efficiently,” added Joshuah Lebacq, Principal at NAventures and Banking as a Service Lead at National Bank of Canada.
Synctera raises $15 million strategic investment led by NAventures with participation from The Banc Funds and existing sponsor bank partners
In addition to its new partnership with National Bank of Canada, Synctera announced a $15 million strategic investment led by NAventures, National Bank of Canada’s corporate venture arm. Other investors include The Banc Funds and a number of Synctera’s sponsor bank partners, including Veritex Community Bank (Nasdaq: VBTX), Midland States Bank (NASDAQ: MSBI), and Emigrant Bank.
“We are delighted to announce that NAventures, Veritex Community Bank, Midland States Bank, and Emigrant Bank have joined us as strategic investors. It demonstrates their confidence in Synctera as the fastest, easiest, and safest way to launch financial products,” said Peter Hazlehurst, Chief Executive Officer and co-founder of Synctera. “We are also delighted to have them as sponsor bank partners on our platform. It’s critical for FinTech innovators to get a sponsor bank partner that understands their product vision, target market, and timeline. Synctera is proud to provide our clients with access to the most diverse set of sponsor bank partners.”
“Veritex Community Bank believes in maintaining agility across our banking value chain,” said Wyatt Abernethy, EVP, Managing Director of Treasury Solutions at Veritex Community Bank. “As the community banking industry evolves, we are happy that Synctera is supporting us to thrive, collaborate, and help innovative new FinTech partners.”
“One of the goals of our technology investment over the past few years has been to position Midland States Bank to compete effectively in the BaaS space, and we are now well prepared to begin partnering with new FinTechs and expanding our BaaS capabilities,” said Jeffrey G. Ludwig, Chief Executive Officer of Midland States Bancorp, Inc. “We expect BaaS to become an important contributor to our financial performance, and we look forward to expanding our existing partnership with Synctera.”
Fruitful is a membership-based financial wellness platform focused on helping its members find prosperity and peace of mind. “We’re excited to partner with such highly regarded banking partners via Synctera’s BaaS platform to launch banking products that brighten our customers’ financial futures,” said Eliane Tchikanda, Fruitful’s Head of Banking. “Synctera is providing the APIs, tools, and hands-on support we need to realize our banking vision. Synctera is also helping us build a resilient relationship with our sponsor bank partner to ensure safety and compliance as our product set and market dynamics evolve.”
In 2023, Synctera plans to add support for new credit, lending, and other banking use cases – and expand into new geographies and client segments.
Source: Company Press Release