Nymbus startup announced the attraction of investment funds in the amount of $70 million following the results of the Series D financing round.

This funding round was led by Insight Partners. Investments were also provided by Banc Funds Company, Mendon Venture Partners, Nymbus ConnectOne Bank, and PeoplesBank.

The startup cooperates with banks in order to transfer their outdated stack and launch the activities of financial institutions in the virtual space. Jeffrey Kendall, CEO of the company, says that the received funding will be used to invest in scaling various products and services. In this process, priority will be given to the startup’s main mechanism for processing transactions and a platform for commercial banking.

Kendall said that against the background of the need of banks and credit unions for a reliable technology package to support operations, the market is dominated by solutions, many of which are more than 30 years old. He recalled that in 2015, the startup launched its cloud banking platform, which became an alternative to outdated technologies and a way to reduce technical debt. Over time, this solution has been expanded in order to optimize operations.

Nymbus was founded in 2015 by Alex Lopatin and Scott Killo. During this period, the youth part of consumers of financial services began to look for virtual alternatives to traditional banking. One of the reasons for this search was the desire to make transactions at more favorable rates. The results of the GOBankingRates survey indicate that currently, almost 30% of Americans aged 25 to 34 use online banking services.

Financial institutions, against the background of significant changes in the technological space, are forced to implement digitalization strategies for their products. At the same time, this is an extremely difficult task for most banks.

A McKinsey study for 2021 indicates that only 30% of lenders who have taken the path of technological modernization have ultimately achieved the desired result. The reason for failures in the context of this activity in most cases has several reasons, including technical debt, fragmentation of IT architectures, or a critical gap between business and IT departments.

Nymbus aims to increase the level of success in the technological transformation of financial institutions with a cloud banking solution that offers API access, event-driven alerts and functions, robotic process automation, and much more. Banks and credit unions can integrate functions that are necessary to expand digital capabilities, improve back-office processes and introduce new products.

Kendall says that Nymbus stands out for its ability to provide a fully managed digital bank that includes a single data stream needed for analysis, decision-making, and strategic planning. The modular nature of the platform allows you to reduce the level of costs without compromising operational excellence, which ensures economic efficiency.

The Nymbus product suite includes basic processing, credit issuance, account opening, and digital channels. This range of solutions combined with operational resources allows lenders of all sizes to explore new market segments and stimulate growth.

Kendall says that the general uncertainty in the economy and the slowdown in technology financing have made it more difficult to find resources for expansion and innovation. He is convinced that as banks realize the need for modernization, the demand for his company’s services will grow.

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