Tuum, an Estonian-based core banking platform, has successfully secured $26 million in its Series B funding round, marking a significant milestone for the company’s expansion plans. With this infusion of capital, Tuum aims to penetrate new territories in central and southern Europe as well as the Middle East, bolster its direct sales and marketing efforts, and establish strategic managed service relationships.
In a press release issued on Tuesday (Feb. 6), Tuum outlined its strategic objectives for utilising the funds. A notable focus lies on enhancing its ‘smart migration’ capabilities, allowing for swift and seamless core migrations in as little as two months. This emphasis underscores Tuum’s commitment to simplifying complex banking operations while ensuring minimal disruption for financial institutions undergoing digital transformations.
Moreover, Tuum intends to refine its proprietary platform, the “Business Builder,” which offers extensive customisation options through configuration. This approach provides a compelling alternative to traditional one-size-fits-all solutions prevalent in the industry. By prioritising flexibility and adaptability, Tuum seeks to cater to the diverse needs of its clients, offering tailored solutions that align with their specific requirements.
Additionally, the company plans to augment its suite of modules and functionalities, focusing on critical areas such as accounts, lending, payments, and card services. This expansion aims to cater to the evolving demands of both corporate and banking sectors, equipping them with advanced tools to navigate the rapidly changing financial landscape effectively.
Myles Bertrand, CEO of Tuum, emphasised the importance of modernising core banking systems to facilitate the transition to digital banking models. He highlighted Tuum’s innovative approach, which combines intelligent migrations, modular architecture, extensive extensibility, and a robust partner ecosystem to streamline core banking processes and drive operational efficiency.
The funding announcement comes amid a broader trend of digital transformation sweeping through the banking sector globally. Recent data from PYMNTS Intelligence underscores the growing reliance on mobile banking, particularly among younger demographics. Generation Z, millennials, and Generation X consumers are increasingly leveraging mobile platforms to fulfil their banking needs, indicating a shift towards digital-first banking experiences.
In the United States, major lenders such as Bank of America and JPMorgan Chase have witnessed a surge in digital banking adoption. Bank of America reported a record number of active digital banking users, while JPMorgan Chase observed significant growth in its active mobile customer base. This trend underscores the pivotal role of technology in reshaping the banking landscape, driving investments in digital infrastructure across the industry.
As financial institutions strive to meet evolving consumer expectations and adapt to digital trends, platforms like Tuum play a crucial role in enabling seamless transitions and empowering banks to remain competitive in an increasingly digital ecosystem. With its ambitious expansion plans and innovative solutions, Tuum is poised to catalyse further digitisation across European and Middle Eastern markets, ushering in a new era of banking innovation and customer-centricity.
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