A portion of the capital – USD 10 million – was debt, while the rest was a Series A equity tranche led by Georgian Capital Partners. The proceeds will be put toward general growth and supporting Savana’s go-to-market and product development projects.
Savana aims to solve the problem of digitalisation through a combination of templates, APIs, and integrations engineered to automate back-office and core banking processes. The company’s platform provides a process architecture for service spanning various banking and customer channels, ostensibly speeding the time to market for products, and ensuring service requests get addressed in time.
More specifically, Savana attempts to decouple third-party components of banking systems and abstract them into APIs that encapsulate not only the components, but also the rules, workflows, automations, and integrations required to perform business tasks. The APIs serve as a library of customer and account servicing functions that are reusable and complementary to Savana’s enterprise content management system, a repository of a bank’s content related to customers and accounts.
Customers’ lifestyle habits are increasingly motivated and directed by the speed and simplicity of online services; the same is true of how they want to bank. The challenge of coping with swift technological change, along with the laborious overhaul of processes, may be a source of concern and frustration. Because of the complexity of this challenge, financial organisations that want to develop new services often need the expertise of external partners to both assess what needs to be improved on and the right approach for best meeting the needs of customers, regulators, and stakeholders.
According to the Digital-First Banking Tracker, nearly 50% of today’s consumers prefer digital-only banking. It becomes essential for banks to upgrade their technology infrastructure to meet the expectations.
Therefore, regardless of the strength of Savana’s platform, it’ll have to contend like any vendor with the challenges that banks face in implementing new technologies. According to a study by the Monetary Authority of Singapore, it takes six to eight months for a bank to research, vet and develop a prototype with a fintech.
To date, Savana has raised USD 54.2 million in capital. Unfortunately, as Fed’s aggressive interest rate hiked tamping down surging inflation, investors flew from the market.
Deloitte reported that fintech investment decreased to USD 52.9 billion in H1 2022, down 24% from USD 69.6 billion in H1 2021. Bank tech vendors suffered, observing a 14% decrease in the first half of 2022 compared to the same period of 2021.
Another research from CB Insights has said that there was an 18% drop in fintech funding between the last quarter of 2021 and the first of 2022. That is the biggest percentage drop since 2018.
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