In a strategic move to expand its footprint, Synctera, a Banking as a Service (BaaS) platform, has officially launched its services in Canada after a successful debut in the United States. The platform empowers organizations, ranging from FinTech startups to major brands, to create compliant FinTech applications and embedded banking products. These products include bank accounts, card programs, and lending services, all designed to adhere to Canadian payments and banking regulations.
Synctera’s co-founder and Chief Technology Officer, Kris Hansen, expressed excitement about the platform’s Canadian debut, stating that the startup is already closing deals with an impressive average annual contract value of $500,000 USD. The Canadian platform will initially offer functionalities such as bank accounts, cards, and electronic fund transfers, with plans to introduce additional features like bill payments in the future.
Founded in 2020 by industry veterans Peter Hazlehurst, Kris Hansen, and Dominik Weisserth, Synctera initially launched its two-way marketplace in the U.S. in 2021. Despite having a predominantly Canadian engineering team, the company chose the U.S. for its initial launch due to the country’s size and highly competitive banking industry.
The move to expand into Canada was announced in March, with National Bank as Synctera’s banking partner. The startup raised $15 million in a funding round from National Bank’s corporate venture arm, NAventures, along with participation from The Banc Funds, Veritex Community Bank, Midland States Bank, and Emigrant Bank.
Synctera aims to simplify the regulatory complexities faced by Canadian FinTech startups by providing a “compliance starter pack.” Lisa Durnford, Synctera’s Head of Compliance in Canada, emphasized the platform’s role in addressing common regulatory hurdles, including know-your-client, know-your-business, fraud, and anti-money laundering requirements.
The platform’s entry into Canada is expected to catalyze innovation in the FinTech space by offering a comprehensive solution for navigating compliance processes. Elena Litani, Synctera’s Product Lead for Canada, highlighted the challenges faced by FinTechs in piecing together solutions independently and commended Synctera for providing a seamless path forward.
Synctera’s consistent growth in the U.S. and its innovative API “building blocks” have enabled customers to create diverse solutions beyond the company’s initial retail-focused target. The platform has played a pivotal role in supporting various commercial applications, including solutions for supply chain finance, manufacturing, and commercial banking.
As Canada moves towards open banking with the planned introduction of consumer-directed finance legislation, Synctera aims to foster competition and innovation in the country’s financial landscape. The platform’s entry into Canada marks a significant step towards empowering FinTechs and traditional financial institutions with the tools needed to navigate a rapidly evolving industry.