Fintech startup SaaScada has secured £2.5m in seed funding from over 10 investors hailing from the banking and private investment sectors.
SaaScada will use the fresh capital for growth and expansion in the banking sector and is targeting digital challenger banks, or neobanks.
The company’s cloud banking platform is used by financial institutions to deploy new features in “minutes”. It provides a hub that is accessible through open APIs and lets fintech firms create their own platform.
SaaScada claims it provides a more competitive alternative, compared to financial institutions building their own solutions from scratch.
“Launching new banking services has traditionally been expensive, time-consuming, and restrictive, due to the inflexible nature of the core banking black box.
“As a result, a lot of organisations have been frozen out, as the cost and complexity of launching services has been prohibitive,” said Nelson Wootton, co-founder and CEO, SaaScada.
The London-based firm was founded by Nelson Wootton and Steve Round in 2016. SaaScada currently offers lending services, deposit taking and current accounts.
“We have a sweet spot in a section of the banking market that has traditionally been excluded from developing best-in-class solutions, those organisations with a balance sheet size of £500m to £4bn, which is where we can add significant value,” said Steve Round, co-founder, SaaScada.
One of SaaScada’s clients is Allica Bank, a fintech challenger bank established in 2019.
“We have been delighted to incorporate the flexible and nimble SaaScada services as we engineer our market-leading payment account and we’re excited to bring the product to market very soon,” said Toby Mason, chief operating officer, Allica Bank.
Competitors include London-based Weavr, which provides embedded finance software. Earlier this year it raised £29.5m in its Series A round.
In a recent interview its CEO Alex Mifsud told UKTN that the company is not competing directly with banking as a service firms and instead plans to “increase the size of the cake”.
SaaScada’s investment follows a bumper 2021 for UK fintech investment, with companies raising $11.6bn in capital.