The seed funding enables Finteum, a London fintech start-up, to scale its intraday liquidity management technology, enabling more banks to benefit.
London, 30 September 2022 – Finteum, a UK-based fintech company, has secured a £1.3million Seed funding round led by SuperSeed.
Basel III regulation means that banks need to hold more liquid assets on their balance sheets. These assets are held in reserve, just in case they become required. As a result, banks often find themselves holding more cash and foreign currency than is strictly required. That is costly for banks, and these costs are rapidly increasing due to rising interest rates.
Finteum is a trading platform that enables banks to borrow for hours at a time, allowing them to efficiently meet a temporary liquidity need. Using the platform becomes an essential component of banks’ liquidity optimisation strategy, and banks predict that it will reduce each bank’s costs by millions of dollars per year. Banks can also use intraday markets to lend excess funds, representing a new revenue stream.
Finteum’s platform is built on Distributed Ledger Technology (DLT) which helps streamline the execution and settlement of trades. The platform enables banks to lend to each other for hours at a time through intraday FX swaps and intraday repo settled in minutes, rather than the days it takes with traditional technology.
Three large European banks have already signed up to the platform, which goes live for trading in early 2023, and more than a dozen other banks have expressed interest in joining the initial group.
The investment round will enable Finteum to expand functionality and bring many more banking clients to the platform. In addition, it will help the company attract and develop more talent this year to support its ambitious plans.
Brian Nolan, Co-founder and CEO of Finteum, explained: “We are delighted to have the financing in place to grow our company and to support client banks until go-live and beyond. We look forward to working with more clients and partners in this next phase of Finteum’s journey.”
Zbi Czapran, Co-founder and CTO of Finteum, said: “We are working to transform how banking is done using next-generation technology. I am excited for the next phase of Finteum’s growth and for the superb engineers we are bringing into the team to develop and provide an enterprise-grade product to our clients.”
Mads Jensen, Managing Partner at SuperSeed, commented: “Finteum provides an elegant way for top tier banks to earn yields on their reserve assets using Distributed Ledger Technology (DLT). We are proud to partner with Brian and Zbi, who are thought leaders in the intersection of DLT and bank liquidity management. We expect the company to provide transformational technology to leading banks for many years to come”.