“As the pandemic has pushed digital to the forefront, more banks and credit unions have turned to Nymbus as their partner for growth,” Nymbus CEO and Chairman Jeffery Kendall said in a Wednesday (Feb. 10) press release.
“This new and significant investment validates a confidence in Nymbus to continue transforming the financial services industry with a banking strategy that buys back decades of lost time to speed digital innovation,” he added.
Insight Partners backs “ScaleUp SaaS” companies to help support growth and innovation. Nymbus said in the release that it is planning to use the new funds to introduce more banks and credit unions to the company’s GROW model, which is intended to generate new digital revenue streams for financial institutions (FIs).
“The shift to profitable digital banking is still in its early stages for many traditional institutions, and Nymbus fills a tremendous hole in the market for enabling these banks and credit unions to finally move beyond playing catchup and set up their businesses for meaningful growth,” said Peter Sobiloff, manager director at Insight Partners.
He added that Nymbus is building a BaaS model “that is well-positioned to be a leader in the industry.”
Founded in 2015 by Alex Lopatine and Scott W. Killoh, the Miami startup said this funding round is its biggest so far and coincides with a year of unprecedented demand for an alternative to the traditional banking model. Nymbus helps FIs make a seamless digital transformation with an integrated bundle of banking technology, tools, and on-demand services.
As part of this round, AJ Malhotra, principal at Insight Partners, and Sobiloff, managing director, will both join the Nymbus Board of Directors. Kendall will assume the title of CEO and Chairman of the Nymbus Board of Directors.
As the coronavirus took hold in March, Nymbus launched the SmartLenders program to help businesses apply for pandemic assistance loans. SmartLenders relies on the expertise of banking and legal professionals, who ensure compliance with SBA regulations.
Nymbus partnered with Payrailz in July to help more banks, credit unions, and other FIs make the move to digital banking services. Nymbus has a SmartLaunch BaaS tool that helps clients seamlessly become digital banks.