Fintech startup Volante Technologies has raised $66 million in its latest funding round, led by Sixth Street Growth, with participation from Wavecrest Growth Partners and Wells Fargo Strategic Capital. The funding will be used to expand the company’s international services and target mid-tier banks as potential customers.
Key Takeaway
Volante Technologies secures $66 million in funding to drive the innovation and adoption of payments technology services by legacy banks and financial institutions. The company’s focus on individual services and functionality positions it as a valuable partner in the digital transformation journey of these businesses.
Accelerating Innovation and Expansion
Volante Technologies, known for its low-code cloud payments services, currently serves over 150 major banks and financial service providers. With this new investment, the company plans to enhance its product roadmap, focusing on global real-time payments, UK New Payments Architecture (NPA), and ISO 20022 modernization. Additionally, Volante aims to expand its Payments as a Service offering to cater to mid-tier banks, particularly in the US and Europe where modern payment technologies such as FedNow Instant Payments, The Clearing House RTP, and SEPA Instant Payments are gaining traction.
Meeting the Demand for Modernization
Legacy banks and financial institutions are increasingly looking to adopt newer, more efficient services to compete with agile fintech players. Volante helps these institutions modernize their systems by offering services such as real-time payments, payments as a service, wire transfers, corporate-to-bank integrations, and embedded preprocessing. Notably, Volante has secured partnerships with well-known industry players, including Citi, BNY Mellon, Goldman Sachs, and Wells Fargo.
The Challenges of Digital Transformation
While digital transformation is a goal for many enterprises, the reality is that budget and organizational constraints often limit the speed and scale of these initiatives. Many businesses are hesitant to replace their existing infrastructure and services, especially if they are still functioning adequately. However, Volante’s individual services and functionality approach aligns with the incremental and flexible needs of legacy businesses.
