Bucharest-based fintech FLOXX has raised $8.5 million in a seed funding round. The enterprise-grade platform helps banks and financial institutions with complex IT infrastructures create digital experiences that neo-banks have championed for years, experiences that consumers increasingly expect. The seed funding will be used to expand operations across Europe and the United States, including through recruiting efforts.
Looking at FLOXX’s home market alone, according to a Microsoft survey, one-fifth of CEE financial institutions have failed to take into account that traditional banks and financial institutions are struggling to keep pace globally. digital today, with only around a third of them having dedicated teams working on it.
This problem of legacy systems will only get worse, because every year the banking industry alone spends more than $200 billion on technology, with 85% of that budget going to ‘running the bank’. i.e. infrastructure maintenance and regulatory updates. I guess that could explain these fees?
The startup provides the banking and financial services industry with a platform to launch complex solutions in just ten weeks, all without having to dismantle existing infrastructure. Once in place, the company offers a “core revival” modernization procedure, ie incremental updates, as opposed to a slash-and-burn method.
To achieve this, perhaps the best way to think of FLOWX is that if a legacy system is espresso, FLOWX is the steamed milk, and together they make a delicious cappuccino. In other words, FLOWX forms a technology stack layer on top of existing systems and provides the tools to build user-friendly and scalable applications for web and mobile.
Using what they call ZeroRedeploy technology, FLOWX claims they can deliver between 10x and 100x efficiency over a traditional development process or the current generation of low-code/no-code tools (such as Crosstown rival Finshape).
FLOWX is also looking further afield and is already targeting the power and utilities, telecommunications and consumer packaged goods sectors, with clients such as Banca Transilvania, Vienna Insurance Group and OMV.
The company’s seed round was led by PortfoLion and saw participation from Day One Capital and SeedBlink.
CEO and co-founder of FLOWX, Ioan Iacob, concludes: “This seed funding, less than a year after the start of FLOXX, proves that the problem we are tackling is extremely painful: legacy infrastructure prevents companies to grow.
the funding will help us expand our offering globally, giving businesses back the freedom to build more – with our growing network of global consulting and systems integration partners.