Method Financial Achieves Major Fundraising Milestone
Method Financial, a pioneer in consumer permissioned financial connectivity, has successfully raised $41.5 million in its latest Series B funding round. Led by Emergence Capital, this financing event also saw participation from notable investors avra and Samsung Next, along with existing supporters such as Andreessen Horowitz, Y-Combinator, and Ardent Venture Partners. With this new injection of funds, Method Financial has now amassed a total of $60 million in funding, a testament to the significant demand for its services in the fintech landscape.
Empowering Fintech Solutions
Currently, Method Financial provides services to over 60 fintech and consumer lending clients, including prominent names like SoFi, Figure, Aven, Happy Money, and Bilt Rewards. Since its inception, the company has enabled an impressive 30 million passwordless account connections for 4 million consumers. It has also played a critical role in facilitating over $500 million in liability repayments, enabling clients to offer competitive lending and financial products while helping end users save on costly interest and fees.
Innovative API Technology
At the core of Method Financial’s success is its groundbreaking API technology, which redefines financial connectivity. Their APIs offer real-time, read-write access to consumer liability data, integrated with payment capabilities. By leveraging connections with over 15,000 financial institutions, Method ensures the delivery of up-to-date, high-fidelity data from users' accounts, making transactions more fluid and efficient. Their approach utilizes identity-based authentication combined with consumer consent, eliminating the need for traditional usernames and passwords. This innovative method results in a remarkable 15-30% boost in conversion rates for financial services.
Expanding Market Reach and Use Cases
According to Anu Hariharan, Managing Partner of avra, "Method’s strength lies in the broad usability of its data and payment products across a wide range of industries and verticals.” Initially focused on helping lenders offer competitive financial products, Method is now branching into new areas, such as card linking and verticals like retail and travel. The partnership between Method and Emergence Capital exemplifies a mutual excitement for future growth.
Funding Impact and Future Goals
This recent funding round is not just about raising capital; it enables Method to further accelerate its delivery of end-to-end loan refinance automation. Their goal is to unlock new use cases made possible by deeper integrations with card networks. Method currently plays a crucial role in supporting fintechs and lenders to enhance refinancing revenue by personalizing offers, improving user engagement with real-time data insights, and facilitating seamless loan payoffs and balance transfers.
Transforming Financial Management
“Method is revolutionizing financial management by providing real-time, comprehensive views of consumer debts, which is crucial for making informed decisions,” stated Carlotta Siniscalco, Partner at Emergence Capital. She expressed excitement over Method’s innovative solutions that integrate seamlessly with financial platforms, enhancing user experience and driving engagement.
Rising Demand for Card Connect
Method has observed a surge in market interest for its new credit card connectivity solution, Card Connect. This innovative product allows users to connect their cards rapidly and has already achieved impressive results; since its launch, 2 million users have linked 10 million cards in mere seconds, earning rewards on eligible purchases. The company plans to utilize the recent funding to strengthen banking relationships, offer even more competitive financial products, and enhance the overall customer experience.
About Method Financial
Method Financial is dedicated to redefining financial connectivity through its cutting-edge APIs, providing real-time, read-write access to consumer liability data with integrated payment rails. Their technology empowers lenders to streamline customer acquisition, improve underwriting accuracy, and enhance line utilization without requiring user credentials. Today, Method serves numerous fintechs, lenders, and financial institutions, including SoFi, Aven, Bilt, Happy Money, and Figure. The company is backed by leading investors such as Andreessen Horowitz, Emergence Capital, Y-Combinator, avra, Ardent, and Truist Ventures, among others.
Frequently Asked Questions
What is the total amount raised by Method Financial in this funding round?
Method Financial raised $41.5 million in its Series B funding round, bringing its total funding to $60 million.
Which investors participated in Method Financial's latest funding?
The Series B funding was led by Emergence Capital and included participation from avra, Samsung Next, and existing investors like Andreessen Horowitz, Y-Combinator, and Ardent Venture Partners.
How many clients does Method Financial currently serve?
Method Financial provides services to over 60 fintech and consumer lending clients, including major names like SoFi and Bilt Rewards.
What technology do Method Financial's APIs offer?
Method's APIs deliver real-time, read-write access to consumer liability data, facilitating seamless payment processes without requiring traditional usernames and passwords.
What are Method Financial's goals with the recent funding?
The funding aims to accelerate the delivery of loan refinance automation, deepen card network integrations, and expand their credit card connectivity solutions to enhance user experience.
