Tuum, an Estonian core banking provider, has recently concluded a significant €25 million Series B financing round led by CommerzVentures, with notable participation from Speedinvest and other existing investors. This funding marks a pivotal moment for Tuum, underlining its remarkable journey from its initial client partnership in February 2019 to becoming a leader in the next-generation core banking sector with a presence in over 10 countries.
A Closer Look at Tuum’s Journey and Vision
- Foundation and Evolution: Tuum, originally known as Modularbank, has been at the forefront of the digital banking revolution, offering an API-first, cloud-agnostic, and modular banking platform that effectively addresses retail and business banking processes.
- Rapid Growth and Market Expansion: The company has seen a compound annual growth rate of over 250% in the last three years, emphasizing its successful expansion, especially in the UK and Nordics, and now aims to broaden its reach into the DACH region, Southern Europe, and the Middle East.
- Strategic Use of Series B Funding: The fresh capital is earmarked for enhancing Tuum’s international presence, deepening key competitive differentiators like its “smart migration” capabilities, and expanding its comprehensive suite of modules including accounts, lending, payments, and card services.
Revolutionizing Core Banking
- Overcoming Traditional Challenges: Tuum’s smart migration approach aims to simplify the core migration process, making it faster and more predictable for banks to transition from outdated systems to more flexible, cost-effective digital solutions.
- Customization Through Innovation: The company’s Business Builder platform stands out for allowing significant customization through configuration, providing a compelling alternative to the one-size-fits-all approach of other cloud-native cores.
- Future Goals and Aspirations: With the Series B funding, Tuum is not only focusing on expanding its geographical footprint but also on redefining core banking for a digital-first future, indicating a clear vision towards innovation and adaptability in the rapidly evolving banking sector.
Key Stakeholders’ Perspectives
- CEO’s Vision for Tuum: Myles Bertrand, CEO of Tuum, emphasized the gap in the market for Tuum’s proposition, highlighting the necessity for banks to replace aging core systems to successfully adapt to digital banking.
- Investor Confidence: Heiko Schwender, Managing Partner at CommerzVentures, noted the huge potential and attractiveness of the core banking market, praising Tuum’s modular approach as well-suited to today’s changing environment.
Conclusion
Tuum’s Series B financing round is a testament to the company’s innovative approach and its potential to transform the core banking sector. With plans for global expansion and continuous product development, Tuum is well-positioned to lead the banking industry towards a more digital and efficient future.
