Piermont Bank, a de novo in New York, has created a platform to offer credit products to its fintech clients.
The $347 million-asset bank said in a press release that BancFi will also serve fintechs’ end-users. The effort builds on the bank’s Banking-as-a-Service platform, which consists of more than 30 fintech clients.
The bank also said it is committing $20 million of newly raised capital to technology initiatives.
“The growth we have experienced since our launch in 2019 validates the digital plus human hybrid banking model we built,” Wendy Cai-Lee, Piermont’s founder and CEO, said in the release.
“Currently, equity takes prominence in how start-ups pay for their growth,” Cai-Lee added. “If, as a startup, you can borrow capital at low and effective rates, it is always better for your company’s growth than selling shares in your business.”
Piermont said it had designed a startup-forward onboarding and implementation process can get a fintech client set up in as little as six weeks. BancFi will provide fintechs with a variety of products, including working capital, warehouse lines and deposit-backed lines of credit.