Peach, a Software-as-a-Service (SaaS) loan management company, has raised $20 million in a Series A funding round, according to a press release on Tuesday (Sept. 14).
The funding round was led by Canapi Ventures with participation from existing and new investors, including SciFi VC, Caffeinated Capital, Nyca Partners and Moore Specialty Credit. The funding will help Peach expand within the loan management and service market.
The Oakland, California-based Peach bills itself as “the first all-in-one SaaS platform addressing the full range of evolving needs of FinTech companies and established financial institutions … through its loan management, servicing and Compliance Guard product offerings,” the release stated.
Eddie Oistacher, Peach’s chief executive officer, said that legacy platforms routinely fall short for emerging lenders in a number of ways.
“First, they were built around a very specific type of loan, and any deviation from that loan type requires a custom build – making it slow and difficult to launch new credit products and even to implement simple changes,” he said.
In addition, there are more regulatory hurdles to overcome, and no legacy solution offers all-in-one functionality, meaning lenders must “integrate an array of vendors piecemeal, leading to convoluted integrations, instability and endless bugs.”
Peach saves lenders the burden of integrating different vendors and reduces time to market from 6 to 12 months to a matter of weeks. The company’s knowledge of debt servicing has allowed it to develop smooth integrations and onboarding for customers that include Jetty, ClearGage and Empower, according to the release.
“As a mobile-first neobank, we were looking for a trusted partner with modern technology that could help us launch innovative lending products quickly – and that’s where Peach came in,” said Warren Hogarth, CEO of Empower. “We were not only impressed by Peach’s flexible technology offering but also their expertise and deep understanding of the complexities of lending and the details that make servicing challenging to address.”
In July, Computer Services Inc. (CSI) launched its loan marketplace, designed to give financial institutions (FIs) access to a nationwide market of commercial and consumer loans.
“The economic downturn has made it vital for financial institutions to diversify their portfolios,” said Gio Mastronardi, CSI’s group president of enterprise banking. “CSI Loan Marketplace allows financial institutions to secure more opportunities, drive efficiency and maximize their earning capacity.”