The American Bankers Association today announced that it has made a direct investment in Finxact, an emerging technology company that offers an innovative, open core banking platform for financial institutions. The investment — which was recommended by ABA’s Venture Investment Committee — comes as part of ABA’s ongoing effort to ensure that member banks are prepared to make the transition to banking’s digital future, and after the association last year took several steps to address the challenges banks currently face with respect to their core providers.
Finxact offers a unique core-as-a-service platform that banks of all sizes can use to quickly add new customer experiences and services to their core banking operations. The platform’s SaaS, cloud-native model allows banks to make proprietary enhancements and custom configurations, while also giving them full access to their data.
“We believe the team at Finxact is bringing to market not just a new core product but a new model for banks to deliver enhanced customer experiences,” said ABA President and CEO Rob Nichols. “ABA is pleased to take part in this historic opportunity to chart a new path for core banking services.”
Nichols added that ABA will continue to look “at every avenue — whether it’s investments in companies like Finxact, working with other core providers or endorsements of new products and services — to help all banks keep pace with the digital revolution underway.”