Helping Banks and Financial Institutions Break Free From Legacy Limitations, FLOXX Raises $ 8.5 Million – Tech.eu
Originally from Bucharest, fintech FLUXX raised $ 8.5 million in a seed funding round. The enterprise-grade platform helps banks and financial institutions with complex IT infrastructures create digital experiences that neo-banks have been championing for years – experiences that consumers increasingly expect. The seed funding will be used to expand operations across Europe and the United States, including through recruiting efforts.
Looking at the FLOX home market alone, according to a Microsoft investigation, a fifth of central and eastern European financial institutions failed to take into account that traditional banks and financial institutions are struggling to keep pace with today’s digital world, with only around a third of ‘between them having dedicated teams working on them.
This legacy systems problem will only get worse, as every year the banking industry alone spends over $ 200 billion on technology, with 85% of this budget being allocated to “running the bank”, ie infrastructure maintenance and regulatory updates. Guess that might explain these charges?
The startup provides the banking and financial services industry with a platform to launch complex solutions in less than ten weeks, all without having to dismantle existing infrastructure. Once in place, the company offers a “core revival” modernization procedure, that is, incremental updates, as opposed to a slash-and-burn method.
To achieve this, perhaps the best way to think about FLOX is if a legacy system is espresso, FLOX is steamed milk, and together they make a delicious cappuccino. In other words, FLOX forms a technology stack layer on top of existing systems and provides the tools needed to build user-friendly and scalable applications for web and mobile.
Using what they call ZeroRedeploy technology, FLOXX claims they can deliver anywhere from 10 to 100 times efficiency compared to a traditional development process or the current generation of low-code / no-code tools ( such as Crosstown rival Finshape).
FLOX is also looking further and is already targeting the electricity and utilities, telecommunications and consumer packaged goods sectors, with customers including Banca Transylvania, Vienna Insurance Group, and OMV.
CEO and co-founder of FLOXX Ioan Iacob concludes: “This seed funding, less than a year after the launch of FLOX, proves that the problem we are tackling is extremely painful: legacy infrastructure is preventing businesses from growing. This
The funding will help us expand our offering globally, giving businesses the freedom to build more – with our expanding network of global consulting and systems integration partners.