Frank and Mike Sanchez, the men behind the Profile core banking platform, have raised $12 million in seed funding for their new cloud-based fintech firm Finxact.
The funding, which comes from Live Oak Ventures and other strategic investors and angels, will by used to complete development of Finact Core, a cloud-based core banking platform aimed at banks looking to overhaul their systems for the digital age.
The Sanchez brothers founded Sanchez Computer Associates in the early 1980s, developing the Profile core banking system before eventually selling up to FIS in 2004. Both men then spent several years in senior positions at FIS, with Frank Sanchez later acting as CTO at Zenbanx, which was recently acquired by SoFi.
Finxact says it is focused on creating an open API, cloud-based Core-as-a-Service platform that will enable the next generation of always-on, digital-first banking.
While several new cloud-based core banking providers, such as Mambu and ThoughtMachine, are looking to hoover up the host of digital-only challenger banks entering the market, Finxact is aiming to win over incumbents saddled with decades-old technology.
Citing a KPMG study which shows that 60% of banks are either already replacing their entire core systems, or are planning to, the startup says that it, and its founders, have the experience and expertise needed to handle such complicated projects.
The first customers are slated to go live on Finxact Core later this year, with general availability set for 2018.
"We are fortunate to have the support of the banking and financial services industry. We have known, and worked with our investors for 30+ years, and together we have delivered new core solutions to banks of every size.
"Today, we have the depth in our team, the know-how, the technology, a great set of early customers, and now - the initial resources, to launch a new class of core banking as a service," says CEO Frank Sanchez.