BCA's CVC Participates in Railsbank's "Open Banking" Startup Funding
Railsbank API service enables companies to provide various financial services such as credit card creation to subscription payment systems
Central Capital Venture (CCV), investment firm (corporate venture capital -- CVC) of Bank Central Asia (BCA) involved in funding $70 million platform fintech London-based API Railsbank. In the series B round, a number of investors were involved including Anthos Capital (leading), Outrun Ventures, and angel investors.
Railsbank presents service open banking comprehensive, including banking as a service, cards as a service, and credit as a service. Enables digital platform providers to provide credit card creation services [Visa and Mastercard], subscription payments for SaaS, and other matters related to financial transactions.
The fresh funds will also be used by the company to accelerate expansion, including exploring markets in Asia Pacific. Targeting companies fintech, telecommunications, to retail to manage their financial transactions more solidly.
"CCV believes in the founders of Railsbank. They have successfully proven their model in Europe and are now expanding into SEA and the United States. BaaS is relatively new to the Indonesian and Southeast Asian markets, and we are confident that Railsbank will bring their successful business model to the region. CCV, we also believe that open banking is still in its early stages and the growth potential is huge," said Anthony Adiputra, one of the investment team at CCV.
He also said that CCV believes API-based connections will have a bright future because it allows a platform to easily integrate with third parties. It also sees the encouragement from regulators for financial institutions to create more open banking initiatives.
Services open finance [open banking is one of the service derivatives of open finance] API-based is indeed becoming an interesting spotlight in the ecosystem fintech, both on a global and national level. Based on a Bain Capital report, the market value of the platform is projected to reach $7,2 trillion by 2030.
Apart from Railsbank, CCV has also invested in services fintech Other APIs, including Oh! Indonesia, Bamboo, and Wallex. For startups, CCV can be a strategic partner considering they are under the auspices of one of the largest banks in Southeast Asia.
On the other hand, the regulator, in this case Bank Indonesia (BI), is also finalizing the relevant regulations Open API standard. One of its missions is to encourage collaboration between banking and financial technology companies to create an inclusive service ecosystem.
With their respective specialties, player maps open finance in Indonesia began to be crowded. The roster includes Safe, Brick, Finatier, Ayoconnect, Xendit/Instamoney, Oy!, and others. Among these players, Bricks is closer to Railsbank -- in order to maximize its services, Brankas is currently collaborating with 14 local banks, including BCA.