More companies are adding payments and other financial features to their offerings; However, this often requires technical expertise that some do not have.
Enter Deposit, a Dallas-based financial startup that offers cloud-based, plug-and-play features to simplify the implementation of digital banking tools for companies such as credit unions, community banks, insurers, retailers and brands.
Co-founder and CEO Joseph Akintolayo started the company in 2019 with Daniel Paramo after years of working with banks and listening to people describe how they wanted their money to work.
“They usually describe it as something that sounds like a credit union,” he told TechCrunch. “They want to feel a sense of belonging. They want to make sure it supports their community. They want to feel responsible and it’s personal and interactive with them.
When he looked at what clients on the agency side were offering, there was a huge gap between what people were asking for and what banks were able to provide. For example, only the biggest banks can offer modern experiences. However, this comes at a high cost to those who are underbanked or unable to afford monthly payments, Akintolayo explained.
“What’s left are the people who have ‘the will,’ and the community banks and credit unions who don’t have the ‘way,'” he added. “Deposit was born from connecting community institutions and brands with a desire to serve consumers with the tools they need to serve consumers in a modern fashion.”
The company enables its customers to quickly and easily integrate mobile applications, debit and credit accounts, mobile deposits, virtual cards, peer-to-peer payments and online accounts with identity verification. They can offer services like home and car loans and foreign exchange.
Deposit has partnered with multiple banking, credit and payment partners to offer a series of modular “kits” of code or low-code devices and APIs including merchant banking, cash management, identity verification, embedded finance for purchases and checks, and more. Workplace needs.
The company joins fintech companies that cater to credit unions and small banks such as Narmi, Bankjoy and XNd Finance. On the subject of deposits, it announced its first investment today, a $5 million seed round led by ATX Venture Partners with participation from Cabal Fund, Lightspeed Venture Partners and others.
“Early embedded fintech platforms have shown interest but required deep technical expertise and experienced a slow rollout,” Chris Shonk, partner and co-founder of ATX Venture Partners, said in a written statement. “Deposit offers a low-code platform that literally any credit union or brand can use. Combine that with the team Joseph has assembled, his compelling mission and impressive early traction, it was an easy decision to invest.”
The company’s new capital infusion will go into product development and add to its team of 27 in sales, marketing and engineering, Akintolayo said. He recently brought in a vice president of business development and rounded out the executive team.
The deposit platform is still in its infancy. It started a little over a year ago. However, Akintolayo says it is already “showing strong signs” that it is ready for a wider market.
“Business has not slowed down for us,” he added. “We are very excited on our part and we are supporting the most important and necessary part of the economy. The products and services we offer are needed in times of abundance and crisis, and we feel very good about that.”