Zeta, a banking technology startup, announced yesterday that the company has raised $250 million from SoftBank Vision Fund 2. The latest funding is one of the largest single investments in a banking technology company.
According to an official announcement, Zeta received a valuation of $1.45 billion after the latest Series C funding round. The US-based banking technology startup provides tech solutions to financial companies around the world.
Zeta mentioned that the company’s Omni Stack provides innovative features and functionality required by financial firms to launch relevant products. Zeta highlighted the need for security, data protection and privacy in the global banking sector.
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Commenting on the latest funding announcement, Bhavin Turakhia, CEO & Co-Founder of Zeta, said: “Most banks are using decades-old software built at a time when Mainframes and Cobol were in vogue. As a result, they have been slow to innovate and provide poor user experiences. With Zeta, financial institutions (FIs) can leverage a modern, cloud-native platform and improve speed to market, agility, the cost to income ratio and user experience. We are privileged to have SoftBank join us in this exciting journey as we together disrupt the stagnant landscape of banking tech.”
The US-based company mentioned that it is planning to accelerate its growth in the US and Europe through the latest funds. Moreover, Sodexo, a leading issuer of Employee Benefits & Rewards, participated in the latest funding round as an additional monitory investor.
The demand for innovative banking software and the latest financial technology has increased significantly in the last few years amid a surge in global banking customers. Munish Varma, the Managing Partner at SoftBank Investment Advisers, highlighted the importance of the banking technology industry in the recent announcement.
“Banking software is a $300 billion industry globally. Most banks still employ technology that is significantly older than their customers, impacting user experience and engagement. Zeta’s modern Omni Stack will drive banking software upgrades catering to the digital consumer and innovations in financial services globally,” Varma said.