French startup Swan has raised a Series A funding round of $ 18.7 million (€ 16 million) led by Accel. The company provides a banking-as-a-service platform for other products and services.
Integrated finance has been a major trend for the past few years in fintech. The companies that operate in this space provide financial services to other companies. Those clients act as a financial services distribution channel with the integrated finance company acting as the backbone of all finance.
In this way, some companies that do not want to manage financial services can still offer financial services. And other companies may specialize in API-based products that unlock some new features for their customers.
Swan partners with SaaS companies, marketplaces, and even other fintech startups so they can offer banking features while tagged. For example, you can leverage the Swan API to generate accounts and cards using API calls.
Existing investors Creandum and Bpifrance also participated in today’s funding round. Some of Swan’s clients include Agicap, Alma, Expensya, Fintecture, Mon Bel Appart, Pennylane, and Ride.
When it comes to creating an account, each account comes with its own IBAN. End customers can access these accounts through a Swan-designed web banking interface. Swan customers can choose to design their own interface on top of Swan data.
When it comes to cards, Swan allows you to generate both virtual and physical cards. They work with Apple Pay and Google Pay. Swan customers can limit some features, such as ATM withdrawals, or they can let their customers control their cards directly.
The startup has an e-money license and can offer services throughout the European Economic Area. It also handles regulatory requirements such as identity verification and fraud detection. Solving these pain points alone is an important selling point, as Swan customers do not have to handle regulatory requirements on their own.
With today’s funding round, the company plans to expand into Germany with a new office in early 2022. Swan will compete with the Berlin-based banking-as-a-service company. Solarisbank. But Swan also plans to allow developers to start using the company’s APIs directly with a self-service model.
“Our ambition for this funding round is to provide specialized, local flavored banking functions for a multitude of local EU markets: ideal in the Netherlands, Ibans starting with DE in Germany, capital deposit accounts in France, and much more. “. co-founder and CEO Nicolas Benady said in a statement.
As you may have noticed, fintech has become a busy vertical for tech startups. With its B2B2C strategy, Swan doesn’t have to build a financial super app to become the main financial point of contact with millions of users. And many people are probably already using Swan’s services without realizing it.