Fintech startup Deposits bags $5M in seed funding to democratize digital banking and payments

As businesses move online, more and more companies are beginning to add new payment and financial tools to their offerings to improve the customer experience. However, integrating these tools often requires technical expertise that some may not have without a full-blown IT team. That’s where today’s fintech startup comes in.

Enter Deposits, a Dallas-based Plug-and-play fintech startup that simplifies the implementation of digital banking tools for banks, businesses, and brands. Deposits’ cloud-based platform enables credit unions, community banks, insurers, retailers, and even product brands to offer a wide spectrum of payment and banking experiences without the need for deep technical expertise.

To further build out its full-stack banking platform, Deposits announced today it has raised $5 million in seed funding led by ATX Venture Partners and joined by Cabal Fund, Lightspeed Venture Partners, and others. Deposits also plans to use the funding proceeds to expand its sales, marketing, and engineering teams and hire for a range of positions.

Co-founder and CEO Joseph Akintolayo started Deposits in 2019 with his friend Daniel Paramo after many years of working with banks and listening to people describe how they want their money to work.

“Local banks and credit unions have built trust with customers over decades by keeping money within the community. But those customers often fall out of love because those institutions struggle to provide a modern, mobile-first banking experience,” said Joseph Akintolayo, founder and CEO of Deposits. “Deposits makes it easy for trusted brands to provide stellar experiences with money. This means their customers can participate in a full range of financial services that in turn improve their financial circumstances and well-being.”

Deposits opens up access to digital banking by making it easy for organizations, regardless of size, skill or budget, to strengthen their relationships by offering modern financial experiences. These services include mobile apps, fully online account opening, identity verification, debit and credit accounts, mobile deposits, virtual cards, P2P payments, home and auto loans, foreign exchange, and more. Deposits’ modular, flexible platform allows for rapid implementation, enabling partners to offer modern banking services in days versus months.

Deposits stands out for its next-generation plug-and-play fintech platform that fills the gap left by embedded finance providers by eliminating technical barriers as well as for its mission to bring modern banking services to new communities.

“Local banks and credit unions have built trust with customers over decades by keeping money within the community. But those customers often fall out of love because those institutions struggle to provide a modern, mobile-first banking experience,” said Joseph Akintolayo, founder and CEO of Deposits. “Deposits makes it easy for trusted brands to provide stellar experiences with money. This means their customers can participate in a full range of financial services that in turn improve their financial circumstances and well-being.”

The Deposits platform comprises several kits, each of which provides thematic financial experiences for Web, Android and iOS devices using no-code/low-code tools and is extendable through open APIs including Banking, Money, Identity, Commerce, and Workplace kits.

“The first wave of embedded fintech platforms demonstrated demand but required deep technical expertise and suffered delayed rollouts,” said Chris Shonk, partner and co-founder at ATX Venture Partners. “Deposits delivers on the promise with a low-code platform that literally any credit union or product brand can use. Combine that with the team Joseph has put together, its compelling mission and impressive early traction, and it was an easy decision to invest.”

Deposits partners with a range of networks, aggregators, program managers, and issuing banks to facilitate the issuance of payment cards, loans, and other financial products. These include Blue Ridge Bank, Juicefin, Metropolitan Commercial Bank, MX, Qolo, Sutton Bank, Visa, Mastercard, and others.

Deposits selects partners that provide the best fit for each customer, depending on the services required. Deposits earns revenue from a mix of interchange fees, originations, banking SaaS fees and interest, which it shares with its customers and partners. This ensures alignment around the usage of its products and reduces up-front risks for organizations starting to offer new banking services.

Deposits’ customer FRSH is dedicated to empowering people with criminal records by providing access to resources that improve quality of life. The organization seeks to dismantle systemic barriers to employment mobility, including those surrounding acquiring bank accounts and earning credit. “Deposits helped us provide our community with banking services they desperately need,” said Danny Feldman, co-founder and CEO at FRSH. “We are thrilled to call them a partner and deeply believe in what they are doing.”

“Financially empowering people who share values is a core mission of credit unions across America and our focus on members drives trust in our brands,” said Renee Sattiewhite, President and CEO of the African American Credit Union Coalition (AACUC). “By making it simple for credit unions to deliver more sophisticated financial services, Deposits is ensuring more communities are included in opportunities to build wealth.”

Deposits’ current customers include FRSH, AiBUY, IFEB, Moniwave and Ujamaa, among others.