Railsbank raises $70m

Railsbank, a Banking-as-a-Service (BaaS) platform, has raised $70m in its latest funding round.

The business, which also pitches itself within the growing trend for ‘embedded finance’ was founded in 2016 by Nigel Verdon and Clive Mitchell.

“Think of Railsbank as being the financial services layer of the Internet,” said Verdon, CEO and co-founder of Railsbank.

In the same manner that Apple transformed the music industry when they created iTunes, so is Railsbank transforming banking says Verdon. 

“Too much of the current global financial services system is made up of aging legacy technology and operational processes, making it unnecessarily complicated, highly expensive and nearly impossible for innovators to create the ‘Spotify’ of financial services,” he said.

This, he adds, means taking individual financial components so customers can easily embed financial products directly into their own customer experiences 

“This will finally make financial services customer centric and inclusive, rather than the situation today which is institution centric and exclusive,” he said.

Railsbank, which last raised money with a $37m funding round in November in 2020, says it will use the funds to further expand its product range including across Europe, Asia Pacific and North America.