Swan Raises $18.7M to Revolutionize Embedded Banking

Swan Secures $18.7 Million Series A Funding

French technology company Swan has successfully completed a $18.7 million (€16 million) Series A funding round. The investment was spearheaded by Accel, demonstrating strong confidence in Swan’s innovative approach.

Swan specializes in providing a banking-as-a-service platform. This allows other businesses to seamlessly integrate financial services into their own offerings.

The Rise of Embedded Finance

Embedded finance has emerged as a significant trend within the fintech industry over recent years. Companies operating in this sector facilitate financial services for other organizations.

These clients then utilize these services as a distribution channel, with the embedded finance provider functioning as the underlying financial infrastructure.

This model enables companies without the desire to manage financial operations to still provide them. It also allows for the creation of specialized, API-driven products that enhance client capabilities.

Swan’s Platform and Capabilities

Swan collaborates with SaaS businesses, online marketplaces, and other fintech startups. They offer white-labeled banking features that can be readily integrated.

The platform allows for the generation of accounts and cards through API calls, providing a flexible and scalable solution.

Current clients of Swan include prominent names such as Agicap, Alma, Expensya, Fintecture, Mon Bel Appart, Pennylane, and Ride.

Account and Card Management

Each account created through Swan is assigned a unique IBAN. End users can access these accounts via a web banking interface designed by Swan.

Swan clients also have the option to develop their own customized interface, leveraging Swan’s underlying data.

The platform supports the issuance of both virtual and physical cards, compatible with Apple Pay and Google Pay.

Swan customers can implement controls on card features, like ATM withdrawals, or grant direct control to their users.

Regulatory Compliance and Expansion

The company holds an e-money license, enabling it to operate throughout the European Economic Area. It also manages crucial regulatory obligations.

These include identity verification procedures and fraud detection mechanisms, relieving clients of these complex responsibilities.

The newly acquired funding will facilitate Swan’s expansion into Germany, with a new office planned for early 2022.

This move positions Swan to compete with existing banking-as-a-service providers like Solarisbank.

Furthermore, Swan intends to introduce a self-service model, allowing developers direct access to its APIs.

Future Plans and Localization

“Our ambition for this funding round is to provide banking features with local flavor, specialized for a multitude of local EU markets,” stated Nicolas Benady, co-founder and CEO of Swan.

“This includes features like Ideal in the Netherlands, DE-starting IBANs in Germany, and capital deposit accounts in France, and much more!”

A B2B2C Strategy for Growth

The fintech landscape is increasingly competitive. Swan’s B2B2C strategy allows it to reach a large user base without the need for a comprehensive financial super app.

Many individuals are likely already benefiting from Swan’s services without even being aware of it, highlighting the company’s discreet yet impactful presence.