PortX – a transformative leader in open banking and seamless core integration for community financial institutions – recently announced the successful closing of a $16.5 million Series B funding round. The funding round was co-led by FUSE, a Pacific Northwest-based venture capital firm and Curql, a collective of forward-thinking credit unions. They were joined by BankTech Ventures, EJF Capital, and the Btech Consortium – all financial services-focused investment firms representing nearly 200 community financial institutions. This announcement comes one year after the company secured $10 million to close its Series A funding.
A standout feature of this funding round is the representation and commitment from nearly 200 community financial institutions that make up its investor groups, highlighting the company’s influence and credibility in the financial services space. And the community banks (represented by BankTech Ventures, EJF Capital, and the Btech Consortium) continue demonstrating their collective belief in PortX’s promise and direction. Plus, credit unions, under the banner of Curql have shown their confidence in PortX’s solutions tailored to their unique needs. This widespread and diverse institutional backing underscores PortX’s common appeal and its flexibility to cater to the distinct challenges and aspirations of both community banks and credit unions in a rapidly evolving financial ecosystem.
Establishing a Credit Union Service Organization (CUSO) marks a strategic move for PortX to serve its credit union customers better. And this specialized unit will focus on customizing PortX’s solutions to meet credit unions’ unique requirements and regulations. The CUSO ensures that credit unions benefit from tailored solutions that enhance member engagement and operational efficiency while navigating regulatory requirements. This initiative underscores PortX’s commitment to delivering more relevant and customized offerings to its credit union customers.
The Series B funding round enables PortX to concentrate on transformative initiatives that will benefit both community banks and credit unions in the following ways:
- Building the next generation of products and support: PortX will invest in developing new products that redefine how financial institutions connect with evolving technologies, delivering unparalleled technological advantages.
- Enhancing AI offerings and data automation components – The new funding round will accelerate the improvement of AI offerings, enabling banks and credit unions to make data-driven decisions and automate processes efficiently.
- Speeding up fintech connectivity through a marketplace of connectors – Expanding PortX’s marketplace will drastically reduce the time required for banks and credit unions to integrate third-party apps and fintech solutions, offering unprecedented operational efficiency.
- Driving forward a paradigm of low-code tooling – This funding will allow further development in low-code tools that enable financial institutions to adapt rapidly in a fiercely competitive landscape.
- Developing exceptional technology for banks and credit unions – The funds enable PortX to double down on solving the complex demands of the financial services industry, helping the next generation of FIs through state-of-the-art technology.
KEY QUOTES:
“We have re-invested in PortX because they not only provide cutting-edge integration software but also actively address the major barriers community banks face in their digital transformation journey, including organizational resistance, legacy technology, and fear of disruption. This Series B funding represents our commitment to PortX and their mission to revolutionize innovation in community banking, aligning with our own goal of bridging the gap between technology and financial services.”
- Carey Ransom, Managing Director at BankTech Ventures
“As an organization deeply embedded in sourcing next-gen technology solutions that empower community banks, Btech sees our investment in PortX as an important step forward for our Consortium members. PortX doesn’t just react to market demands; they’re proactively shaping the industry conversation. We’re excited to partner with them as our first investment to expand their outreach and secure their position as leaders in the industry and among our members.”
- Mike Sekits, Co-Founder and Managing Director at Btech Consortium
“At EJF, we value sustainable growth and meaningful impact, qualities that PortX embodies. We are confident that this funding will further enable PortX to break down traditional barriers in financial services, offering scalable and customizable solutions that empower institutions to optimize performance and user experience.”
- Jonathan Bresler, Managing Partner at EJF Ventures
“What excites me most about this investment is the outpouring of support from investors who are backed by the same institutions we serve. That’s a major vote of confidence and serves as both validation of our efforts and a testament to our growing influence in the fintech landscape.”
“Credit unions have been early adopters of the PortX platform from the very beginning. Not only am I excited to have Curql join this round, I’m thrilled for the creation of the PortX CUSO, which will further refine our solutions for some of our most loyal customers.”
- David Wexler, CEO of PortX
“Our investment in PortX is a statement of belief in their unparalleled technology and vision. The creation of a CUSO will deepen their relationship with credit unions, offering more customized and effective solutions. We’re proud to partner with a company that understands the unique needs of these community financial institutions.”
- Nick Evens, President and CEO at the Curql Collective
“We at FUSE see PortX as a game-changer in the open banking ecosystem. Their vision and technology align perfectly with the industry’s evolving needs. This is our second investment in the company, and it’s not just a vote of confidence in PortX, but a bet on the transformative power of open banking in shaping the future of commerce and financial services. And it’s exciting to partner alongside other visionary investors who are equally committed to innovating and improving financial services for FIs.”
- Brendan Wales, Founding Partner at FUSE
