Helping Big Banks Outperform Affirm Affirm and Chime Chime Gives Amount $ 681 Million Valuation – TechCrunch


Rising, a new service that helps traditional banks compete in a digital world, has raised $ 81 million from none other than Goldman Sachs in an effort to help former fintech players compete with their more nimble digital counterparts.

The company, which grew out of the Avant start-up loan company in January this year, has already signed agreements with Banco Popular, HSBC, Bank of Regions and TD Bank to power its digital banking services and offer products like point-of-sale loans to compete with competing banks like Chime and lenders like Affirm or Klarna.

“Most banks are looking for resources and infrastructure to accelerate their digital strategy and meet the demands of today’s consumers,” said Jade Mandel, vice president of Goldman Sachs’ venture capital platform, GS Growth , who will join the board of directors of Montant, in a statement. “Amount enables banks to navigate digital transformation through its modular and mobile platform for financial products. We are excited to partner with the team as they seize this fascinating market opportunity. “

Complementing these customer-centric services, deep expertise in back-end fraud prevention to help banks deliver more loans with less risk than their competitors, according to CEO Adam Hughes.

It was the combination of these three services that led Goldman to make a new investment of $ 81 million in the company, with the participation of previous investors. August Capital, Invus Opportunities and Hanaco Ventures – giving Amount a post-currency valuation of $ 681 million and bringing the company’s total capital raised in 2020 to $ 140 million.

Think of Amount as a white-label digital banking provider for Luddits banks that hadn’t upgraded their services to keep pace with demands from a new generation of customers or the COVID-19 era of digital services for everything.

Banks pay a pretty penny to access Amount’s services. In addition to a percentage for all loans that a bank processes through Amount’s services, there is an upfront implementation fee which typically averages $ 1 million.

The high price is a sign of banks’ concern about their digital challengers. Hughes said they’ve seen a big increase in adoption since launching their Buy-It-Now product, designed to compete with fast-growing startups like Affirm and Klarna.

Indeed, by offering these services to banks, Amount gives Klarna and Affirm something to worry about. This is because banks may have a lower cost of capital than startups and can offer better rates to borrowers. They also have the balance sheet ability to approve more loans than either of the two entry-level lenders.

“Amount is booming and the industry is taking notice,” said Nigel Morris, co-founder of Capital One and investor in Amount through QED Investors. “The latest round brings Amount’s total capital raised in 2020 to nearly $ 140 million, which will allow additional investments in research and platform development while accelerating the company’s go-to-market strategy. . QED is thrilled to be a part of Amount’s story and we look forward to the company’s future success as it plays a vital role in the digitalization of financial services.

FT Partners acted as advisor to Amount on this transaction.

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