Funding Xchange secures Series B funding from Barclays

Barclays has led a Series B funding round in Funding Xchange (FXE), which provides white-label software solutions for banks and lenders.

The latest financing round was open to a consortium of Funding Xchange clients and brings together strategic investors.

The amount raised has not been disclosed.

Funding Xchange will use the fundraise to accelerate its ability to “drive ecosystem adoption of the digital tools that promote transparency, positive customer outcomes and more efficient lending processes for banks and lenders”.

In 2020, Funding Xchange completed a $10 million Series A funding round, led by Downing Ventures and Gresham House Ventures.

“We have chosen to back FXE as we see the opportunity to transform an industry that has not kept pace with the consumer market in the adoption of digital technologies,” Ryan Hayward, head of strategic investments for Europe and Asia at Barclays said.

Funding Xchange chief executive officer Katrin Herrling

“The team at FXE brings together the right mix of skills and experience and they have built an impressive technology and insights platform. The strength of the team and their track record as innovators makes us excited about the prospects for the business.”

The company’s products have been adopted by 80 high street banks, specialist lenders and challenger banks.

Managing director of Funding Xchange Sarah Hollyhead called the investment from Barclays “transformational”.

“Our client-led Series B is fantastic recognition of the client advocacy our team has built,” she added.

Katrin Herrling, chief executive officer and co-founder of Funding Xchange, said: “This investment creates a unique opportunity for Funding Xchange to drive the transformation of the wider SME lending ecosystem.

“We are delighted that Barclays shares our vision and approach to close collaboration focused on rapidly unlocking tangible benefits for businesses and banks.”

Last year, Herrling took part in an Open Banking Expo roundtable, in association with CRIF, to discuss ‘Revolutionising Loan Origination: Practical Solutions for Banks to Streamline Operations and Support SMEs’.

She was among the participants who discussed how Open Banking data is being deployed by SME lenders to automate data collection and increase underwriting capacity, but not to the detriment of relationships between lenders and their clients.