California-based Synctera has raised capital to power expansion North of the border.
The Silicon Valley banking-a-a-service startup is partnering with National Bank of Canada to help companies build and launch Fintech apps and embedded banking products in Canada.
Synctera recently announced a $15 million strategic investment, which was led by NAventures, the corporate venture arm of National Bank of Canada.
Other investors participating in the round included The Banc Funds, Veritex Community Bank, Midland States Bank, and Emigrant Bank.
“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,” stated Kris Hansen, cofounder and chief technology officer of Synctera.
Launched in 2020, Synctera helps companies acquire customers, deepen customer relationships, and access new revenue streams by launching innovative banking products.
Synctera’s end-to-end platform enables companies to build and launch fintech apps and embedded banking products fast, easily, and at lower cost compared to building in-house or with multiple vendors and partners, according to a statement from the firm.
“Whether you are launching a pure play FinTech app, or financial products are just one component of your business model, Synctera has everything startups need to build a new banking, wallet, payments, or lending offering—and launch it fast,” the company states online. “Our Banking-as-a-Service platform has everything you need to launch a world-class FinTech app or embedded banking product.”
The company believes it is entering the Canadian market at a time of high demand for innovation in financial products.
“Canada is on the precipice of open banking,” notes Hansen, “and many Canadians have a lot of pent-up demand for the financial innovation that often comes from FinTechs and non-financial institutions.”
Already, Synctera has several dozen employees in Canada, and now a robust network of local investors.
“It’s critical for Fintech innovators to get a sponsor bank partner that understands their product vision, target market, and timeline,” explains Peter Hazlehurst, chief executive officer and cofounder of Synctera.
Hazlehurst believes his company achieved this ideal with their roster of supporters.
“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, Banking-as-a-Service Lead at National Bank of Canada.
In 2023, Synctera plans to add support for new credit, lending, and other banking use cases—and expand into new geographies and client segments, according to a statement from the company.
“As the community banking industry evolves, we are happy that Synctera is supporting us to thrive, collaborate, and help innovative new FinTech partners,” said Wyatt Abernethy, Managing Director of Treasury Solutions at Veritex Community Bank.