Former Mambu CTO’s new startup raises seed round to help banks cut tech jobs

Ben Goldin Founder of Plumery 1 scaled e1682352438412


Banking infrastructure may not seem attractive, but it is one of the most lucrative corners of technology given the demand from old and new banks to update their old and slow systems.

The latest startup to raise funding in this space is Plumery, a SaaS startup founded by European fintech veteran Ben Goldin. The company has raised €2 million in equity and €2.3 million in convertible bonds in a seed round.

Its technology is designed for use by both legacy and neo-banks, as well as digital wallet providers, to customize the user experience (UX).

How does plumery work?

For NatWest and HSBC worldwide, migrating banking systems from IT frameworks likely designed in the 90s to new cloud-based platforms like Manbu is a complex process. In-house. See, for example, JP Morgan’s plans to double the headcount of UK neobank Chase to he 2,000 by the end of 2024.

But building new technology from within old school institutions takes a very long time. Neobanks like Monzo can complete up to 100 updates in a day, while legacy banks can take around six months to update app functionality. Goldin.

As such, Goldin says, Plumery is building a software API to speed the release of new features and present real-time data on their performance. Market cores like Mambu, with which he has already partnered, can sit on top of his banking platform or layer on top of a bank’s existing legacy systems.

The idea is that Plumery will also eliminate the need to hire hundreds of costly technicians. In fact, Goldin told his Sifted that he believes JP Morgan could cut his hiring quota from 1,000 to just 100 if he used his Plumery for Chase Bank. increase. 30.

“We don’t try to force you into a decision to buy or build a bank for modernization,” he told Sifted.

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“Instead, we’re allowing ourselves to shift gears a bit to build new features to improve the customer experience today, freeing up our engineers to tackle the bigger, underlying software problems of the future. I allow it.”

Plumery operates a subscription-based model. This consists of a base rate and tiered pricing based on active users. According to Goldin, it’s “10x cheaper” than his other UX software providers, saving millions in hiring costs.

Who Supports Plumeria?

  • The round was led by global VC Headline (former backer of Raisin and Tandem Bank) and US firm Better Tomorrow Ventures (backer of Ramp and AngelList).
  • Seedcamp, an early Revolut and Wise investor, also participated, as did VC and angel firm Cocoa.
  • Angel investors Didier Vallée (former deputy CEO of Societe Generale Group), Ricky Knox (co-founder of Tandem Bank) and Alan Morgan (former senior partner of McKinsey & Company) participated.

What’s next for Plumery?

  • Goldin plans to grow the team, mostly engineers, from 10 to 15 by the end of the year.
  • Plumery will initially focus on banks in Southern Europe and the Middle East. According to Goldin, these banks are underserved by digital applications, but they are developing rapidly.
  • Goldin expects about 30% of Plumery’s first customers to be traditional banks, with the remainder split between digital wallets (about 15%, he estimates) and neobanks (55%).

Screened takes

Plumery is by no means the first company desperate to help build this tier of UX banking software. There is the back base of the Amsterdam headquarters where Goldin once worked. It is the only direct competitor that focuses exclusively on this tier. There are also several of his SaaS startups, like FIS and Temenos, that offer end-to-end solutions in both core banking infrastructure and his UX capabilities. Finally, Plumery stands up to neobanks and traditional banks that have decided to build everything in-house.

But Goldin is a bit of a veteran when it comes to European fintech, so let’s see if his product know-how and black book of contacts can help him beat the competition.

Amy O’Brien is a Fintech Reporter at Sifted.she tweets from @Amy_EOBrien He is also co-author of the Fintech newsletter. Sign up here.


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