Splash Financial, the digital lending platform that allows borrowers to compare and choose from a wide range of lenders, has announced that it has secured funding of $44.3 million in its Series B round.
The round was led by DST Global, Citi Ventures, Detroit Venture Partners, and others. The company was named among the top 250 private fintech companies in a study recently, the company said. The investment would be used for its growth and expansion within the lender network and also upgrade the automated underwriting platform to improve speed and reliability.
“We’re thrilled about what this funding will allow us to achieve and are excited to partner with amazing investors that share our values,” said Steven Muszynski, Founder, and CEO of Splash Financial. “The expectation of consumers today is to be able to compare, shop, and save on their financial products all while in the comfort of their own homes. This funding round brings us another step closer to realizing our company vision — creating a faster and less expensive financial world.”
Digital lending has been growing around the world over the last few years and it is clear that digitalization is the way ahead for all the branches of finance. With the new generation of people coming into the industry as users, the companies need to upgrade their technology to suit their needs and tastes, and based on that, we are seeing banks and other financial services companies upgrading their infrastructure from legacy systems to the digital world.
“The importance and sophistication of digital lenders are growing apace,” said Charley Howe, Director of Venture Investing at Citi Ventures. “Splash Financial is spearheading a digital transformation strategy that will meet the new demands of consumers. We see significant growth potential in the continued evolution of the lending experience and we are thrilled to support Splash’s next phase of growth.”
Financial lending is another key field where digitalization would be very useful and using platforms like Splash, the banks and credit unions can easily gain access to new users without spending too much money upfront. Bringing a variety of borrowers with varied needs and a large number of lenders into a single platform and matching them using proprietary technology is likely to be the key for growth as far as the lending industry is concerned. The company that solves this puzzle the best is likely to capture a large share of the market.