Deposits banks $5M for its plug-and-play approach to financial product creation

More businesses are expanding their operations to include payments and other financial elements, but doing so frequently involves technological know-how that some customers lack.

Enter Deposits, a financial start-up with headquarters in Dallas that provides a cloud-based, plug-and-play feature to make the deployment of digital banking capabilities for organisations like credit unions, community banks, insurers, merchants, and brands simpler.

After years of working with banks and listening to individuals explain how they want their money to function, co-founder and CEO Joseph Akintolayo and Daniel Paramo founded the firm in 2019.

He told TechCrunch, “They frequently describe something that sounds somewhat like a credit union.”They seek a sense of ownership.  They want to feel in charge and that it’s personalized and communicates with them.

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He noticed a significant discrepancy between what individuals were asking for and what banks could supply when he looked at what his clients on the agency side could provide. For instance, only the largest banks could truly provide contemporary experiences. People who lack access to banking services or who cannot afford monthly fees, however, pay a high price for that, according to Akintolayo.

Community banks and credit unions without a “way” are all that are left, he continued. Deposits was created to connect local organisations and businesses with the resources they genuinely needed to service customers in a contemporary way.

A variety of services, including mobile applications, debit and credit accounts, mobile deposits, virtual cards, peer-to-peer payments, and online accounts with identity verification are made rapidly and conveniently available to clients by the business. In addition, they might provide services like foreign exchange and loans for cars and homes.

Using no-code or low-code tools and APIs, Deposits collaborates with a variety of banking, credit, and payments partners to facilitate its line of modular “kits” that cover business banking, money management, and identity verification, embedded finance for shopping and checkout, and workplace requirements.

The company has received venture capital financing for its methods, joining other fintech firms that serve small banks and credit unions, such as Narmi, Bankjoy, and Xend Finance. In the case of Deposits, it revealed today the details of its $5 million seed round, which was headed by ATX Venture Partners and included Cabal Fund, Lightspeed Venture Partners, and other investors.

According to Chris Shonk, partner and co-founder of ATX Venture Partners, “the initial generation of embedded fintech systems indicated demand but required significant technical skills and suffered from delayed rollouts.” With a low-code platform that practically any credit union or product brand may utilize, Deposits fulfils its promise. It was a simple decision to invest when you consider the team Joseph has put together, the company’s inspiring objective, and its excellent early traction.

According to Akintolayo, the company’s fresh financial injection will be used to expand its 27-person sales, marketing, and engineering staff as well as to create new products. The executive team will be completed by the vice president of business development he just hired.

Despite being only a little over a year old and still in its infancy, Deposits’ platform is already “showing strong signs” that it is prepared for a larger market, according to Akintolayo.

He said, “Business has not slowed down for us. “We have high expectations for our market and are committed to a vital sector of the economy. We feel extremely happy because the goods and services we provide are required both in times of abundance and in times of need.

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