NorthOne Raises $67M Series B Toward Business Banking Platform

FinTech NorthOne has raised $67 million in Series B funding to go toward expanding its business banking and financial management platform, a press release said.

The company was founded to work with various types of main street businesses that have been underserved by older financial institutions. The new funding will help the company raise the standards of its products and services, and the company says it will build new working capital and credit products, along with faster and more convenient payment solutions for entrepreneurs.

Co-founder and COO Justin Adler added that the company was founded to “solve big problems” — citing the fact that 50% of small businesses fail over a 5-year timespan, with much of the failures being due to financial mismanagement and a lack of financial controls.

Eytan Bensoussan, fellow co-founder and CEO, said the company has been looking to build a business experience that can help customers’ needs.

“As our customers grow, their problems evolve beyond the bank account. By connecting the data layer between accounting, receivables, payables, lending, payroll—all the financial operations—and the bank account ledger, we can provide a transformative offering that’s always felt out of reach for our customers: a world-class finance department built for their business,” Bensoussan said.

NorthOne was also among the financial institutions that have cut overdraft fees in 2021.

Read more: SMB Banking App NorthOne Ends Overdraft Fees

Bensoussan said the move was made because overdraft fees had been understood as detrimental, becoming more of an “industry and profit center” rather than being a deterrent and cost recovery mechanism as intended. Because of that, small businesses can often lose a costly percentage of revenues to those fees.

“That’s not right,” Bensoussan said. “And this can be especially painful for many small businesses. We’re excited to eliminate NSF and overdraft fees for NorthOne customers and make our pricing even more transparent and simple.”