Westwood-based financial technology firm ZSuite Technologies has raised $11 million in a Series A funding round, the company said in a statement last week.
The financing was led by Texas-based S3 Ventures. Also participating in the funding round were multiple private banks and JAM FINTOP, a network of around 90 banks.
ZSuite offers technology that lets financial instititutions provide escrow, subaccounting, sub-ledgering and other services to their commercial customers
The company said the investment would accelerate its ability to scale its platform, grow the organization, expand into new markets and support the demand for digital commercial banking tools.
“Managing commercial escrow and subaccounting is a very complex, manual process that has pained bankers and their customers for years,” Charlie Plauche, general partner with S3 Ventures, said in the statement. Plauche added: “In a period of rising interest rates, attracting sticky deposits becomes more important than ever – ZSuite Tech has a perfectly positioned platform and the right team in place to help banks do just that. We are proud to partner with the ZSuite Tech team on the next stage of their journey.”
ZSuite Tech was founded in 2019 as a spin-off from Arlington-based Leader Bank. The company said it works with more than 36 institutions across the United States and supports approximately 41,000 escrow accounts. The company said it also manages more than $140 million in annual payments and $300 million in annual deposits on the platform.
“The financial services industry at large is faced with an overwhelming need to innovate faster and deliver differentiated offerings quickly to keep up with the changing expectations of their account holders,” Nathan Baumeister, CEO and co-founder of ZSuite Tech, said in the statement. “We took a different approach from most fintechs when ZSuite Tech spun out from a bank, with the goal of long-term bank success. We have continued the partnership between technologists and bankers in every aspect of our company from product development to leadership, and this is the main reason for the company’s phenomenal growth and success in a short amount of time. With this investment from groups of bankers and technologists, we will be able to scale faster, helping even more financial institutions better leverage digital technology to address the day-to-day challenges associated with commercial banking.”