Swan, a French startup, has raised $18.7 million (€16 million) in a Series A funding round led by Accel. Other products and services are offered through the company’s banking-as-a-service platform.
Embedded finance has been a hot topic in fintech for the past few years. Companies in this industry provide financial services to other businesses. Those clients serve as a distribution channel for financial services, while the embedded finance firm serves as the financial backbone.
Some businesses that do not want to run financial services can still do so in this way. Other businesses can specialize in API-based products that give their customers access to new features.
Swan collaborates with SaaS firms, marketplaces, and even other fintech startups to provide white-labeled banking services. For example, you can use API calls to generate accounts and cards using Swan’s API.
Swan allows companies to integrate white-labeled banking features such as accounts, cards, and Ibans into their workflows and user experiences using simple APIs. Swan, which was founded in 2019 with the help of the start-up studio eFounders, has an e money license that allows it to provide banking services across Europe, and it plans to use the funding to expand into new markets, starting with Germany.
Creandum and Bpifrance, two existing investors, also took part in today’s funding round. Agicap, Alma, Expensya, Fintecture, Mon Bel Appart, Pennylane, and Ride are among Swan’s clients.
Each account has its own IBAN when it comes to account creation. Customers can access their accounts through a web banking interface designed by Swan. Swan clients have the option of creating their own interface based on Swan’s data.
Swan allows you to create both virtual and physical cards when it comes to cards. Apple Pay and Google Pay are both supported. Customers of Swan can restrict certain features, such as ATM withdrawals, or they can give their customers direct control over their cards.
The company holds an e-money license and is able to provide services throughout the European Economic Area. It also takes care of regulatory issues like identity verification and fraud detection.
Swan customers don’t have to deal with regulatory requirements themselves, so resolving these pain points is a big selling point.
With today’s funding, the company plans to open a new office in Germany in early 2022. Swan will compete with Solarisbank, a Berlin-based banking-as-a-service provider. Swan, on the other hand, intends to use a self-service model to allow developers to use the company’s APIs directly.
Our ambition for this funding round is to provide banking features with local flavor, specialized for a multitude of local EU markets: Ideal in the Netherlands, Ibans starting with DE in Germany, Capital deposits accounts in France, and much more!Nicolas Benady, co-founder and CEO
Fintech has become a popular vertical for tech startups, as you may have noticed. Swan does not need to create a financial super app to become the primary financial touch point for millions of users thanks to its B2B2C strategy. And there’s a good chance that a lot of people are already using Swan services without even realizing it.