Estonian core banking provider Tuum has secured a significant milestone with a €25 million Series B financing round led by CommerzVentures, the fintech venture arm of German bank Commerzbank. This funding round also saw participation from Speedinvest and existing investors.
Tuum, formerly known as Modularbank, has been making waves in the banking industry with its API-first, cloud-agnostic, and modular banking platform, which covers all retail and business banking processes. The company’s approach has attracted a diverse customer base spanning across 10 countries, with a notable presence in the UK and Nordics.
The latest funding round marks a significant endorsement of Tuum’s innovative approach, as it seeks to revolutionize core banking systems. Andreas Kitter, co-CEO of LHV UK, a client bank and BaaS component supplier, lauded Tuum’s ability to simplify core replacements, citing the successful migration of millions of customer accounts in just two months. This efficiency has enabled LHV to operate a state-of-the-art core system with a lean team, allocating 75% of its IT budget to innovation.
Heiko Schwender, managing partner at CommerzVentures, highlighted the immense potential of the core banking market, emphasizing the attractiveness of Tuum’s modular approach in addressing the evolving needs of financial institutions. With annual spending in the core banking space exceeding USD 15 billion, Tuum’s solution offers a mature yet flexible option to alleviate the pain points faced by traditional banking systems.
The infusion of capital from the Series B round will fuel Tuum’s expansion efforts, enabling the company to target new markets in the DACH region, Southern Europe, and the Middle East, where it plans to establish a new office. Additionally, Tuum will ramp up investment in product development to enhance its suite of modules and further solidify its position as a leader in the core banking sector.
Myles Bertrand, CEO of Tuum, expressed excitement about the future prospects enabled by the Series B funding, emphasizing the company’s commitment to simplifying core banking processes for a digital-first future. By combining smart migrations, a rich set of modular functionalities, and a robust ecosystem of partners, Tuum aims to redefine the essence of core banking, making it more accessible and predictable than ever before.