Inaugural Edition, ABA’s Banking Middleware Report, $17.5M Series A
PortX Fintech News
Welcome to the inaugural edition of PortX’s Fintech News. This newsletter will share a handful of the most exciting developments in fintech and financial services, real-life stories from some of our most successful customers, upcoming webinars and events, and more.
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PortX Closes Series A Funding Round
For years, ModusBox operated complementary yet independent sides of its business: Supporting Mojaloop to develop, deploy, and operate an open source, real-time payment network (ModusBox) and delivering a world-class iPaaS for the financial services industry (PortX). Inevitably, a corporate reorganization was necessary to maximize the potential for each side of the business and magnify the value the two companies offer their respective customers. In September 2022, we announced PortX’s spinoff from ModusBox and the close of our $17.5M Series A funding round.
“We were thrilled to double down on our investment and partnership with PortX. Just in the last four months, we’ve observed firsthand the benefits that PortX’s seamless integration platform provides to our network of banks,” said Carey Ransom, Managing Director at BankTech Ventures. “We are excited for the increased focus that the new PortX entity will have on the community banking world and working with the team to open new, innovative opportunities and fintech connections for our banks.”
PortX CEO, David Wexler, shared the details in his public announcement and noted these primary benefits to the two companies and their customers:
- PortX spinoff creates two groundbreaking companies better able to serve their target markets and stakeholders.
- Fuse and BankTech Ventures invest $10M in PortX to accelerate next-gen connections between community financial institutions and fintechs.
- ModusBox focuses on developing and supporting inclusive and interoperable international real-time payment network infrastructure.
Read David’s full announcement on our News page, which details the history of ModusBox, the motivation for spinning off PortX, and more information about our investors.
ABA Releases 2022 Banking Middleware Report
The American Bankers Association (ABA) released its 2022 Exploring Banking Middleware Solutions report covering the strategic benefits banks can realize by leveraging API-led middleware platforms in their technology stack. The report provides more details about three key advantages:
- Reducing reliance on a legacy core to deliver products faster and make future conversions easier
- Building a single source of truth for customer data leads to better customer experience
- Fostering partnerships with fintech companies
In addition, the report provides information on the present state of middleware providers (find us on pages 13 and 14). It presents a set of factors for banks to assess their internal preparedness and external partner selection to determine their suitability for middleware implementation.
The ABA supports its stance with results from its 2022 Core Platform Survey, in which the organization surveyed bankers and core providers on the importance and effectiveness of 17 bank success-related attributes. For the first time, the survey included respondents from core providers which provided astounding insights into the lack of alignment between banks and their cores.
“Of banks surveyed, 42% say they’re dissatisfied with their core provider, and 21% indicate they are unlikely to remain with their core when the contract expires.”
If you want to learn more, you can freely download and read the report from the links below:
2022 Exploring Banking Middleware Solutions: https://www.aba.com/news-research/research-analysis/exploring-banking-middleware-solutions
2022 Core Platform Survey: https://www.aba.com/news-research/research-analysis/2022-core-platforms-survey
What’s New in the Blog?
Watch for our latest blog posts, where we share our thoughts on industry trends, insights, and best practices. Here are a couple of our latest posts that you may be interested in:
Find us at these upcoming events:
California Bankers Association Annual Conference – Maui, Hawaii / May 6-9
Experience FinXTech by Bank Director – Tampa, Florida / May 9-10
ThinkBIG Conference by Abrigo – Miami, Florida / May 8-11
MeridianLink Live! User Forum – Anaheim, CA / May 8-11
What to expect in future issues
We will continue to bring valuable insights and updates regarding the latest fintech and financial services industry trends. We’ll share upcoming webinars you won’t want to miss, covering a wide range of topics from digital transformation to customer experience to banking integration best practices. We will also highlight some of our recent customer successes and the innovative ways they are leveraging technology to meet the evolving needs of their clients.
Help share PortX Fintech News
Don’t keep us a secret! PortX is removing the barriers that impede innovation in financial services. We build infrastructure that delivers open access to data, simplified application connectivity, and accelerated adoption of new technologies and networks.