Savana Raises New Round of Capital to Digitize Banking Services

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Savana, a Malvern, Pennsylvania-based company that develops financial software products for legacy banks, today announced it has raised $45 million. Part of the capital – $10 million – was debt, and the rest was a series A tranche of shares managed by Georgian Capital Partners.

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Executive Director Michael Sanchez told TechCrunch that the proceeds will go towards overall growth and support for Savana’s go-to-market and product development projects.

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Savana was founded in 2009 by Sanchez, formerly President of the FIS International Division. Prior to FIS, he founded Sanchez Computer Associates, a major banking systems provider.

The problem that Savana solves is architecture. Sanchez reports TechCrunch. He vehemently states that despite the efforts of banks to digitally transform, many of them have not been successful.

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According to him, 2022 interview found that – among banks and credit unions who believe they are at least three-quarters digital, with less than 25% seeing significant revenue increases. Furthermore, Only 11% of finance executives say their organization has upgraded systems to the point where they can easily adopt new digital technologies, according to Deloitte.

“Today’s consumers prefer only digital banking. This change in consumer behavior has been happening for several years and has been accelerated by the COVID-19 shutdowns, forcing consumers to complete everyday tasks like shopping for groceries, depositing checks or managing their accounts, all online,” said Sanchez. in an email interview. “Despite the fact that all banks have gone digital, most banks are not ready for this major change in consumer behavior… This is a major challenge for banks trying to remain competitive in the face of enormous fintech pressures.”

Savana aims to solve this problem with a combination of templates, APIs and integrations designed to automate the back office and core banking processes. The company’s platform provides a “process architecture” for service that spans various banking and customer channels, ostensibly speeding up time-to-market for products and ensuring that service requests are dealt with quickly.


A look at the Savana Services Dashboard. Image Credits: shroud

In particular, Savana is trying to separate the third-party components of banking systems and abstract them into APIs that encapsulate not only the components, but also the rules, workflows, automation and integration tools needed to complete business tasks. The APIs serve as a reusable library of customer service and billing functions that complement enterprise content management system, a repository of banking content related to customers and accounts. Other than that, Savana offers a low-code UI framework for building back-end and client-side applications that interact with the aforementioned APIs.

“With preconfigured processes and integrations, [bankers using Savana] get a holistic view of all customer accounts, cards, messages and more in real time, while customers benefit from a better and more personalized service,” Sanchez continued. “It eliminates process silos by automating processes between systems and people and removes the need for multiple siled vendors. [The] The complete end-to-end platform is pre-configured with hundreds of APIs included.”

Of course, Savana is not alone in the banking modernization market. Quantity recently raised $99 million at a $1 billion+ valuation for its package designed to help banks better compete with fintech companies. There are also MANTL as well as Bankjoy, two startups developing technologies that make it easier for people to open digital accounts with local banks and credit unions. One fintech that competes almost directly with Savana is based in London. 10x technology of the futurewhich helps large and reputable banks create both next-generation services and tools that increase the efficiency of their old services.

Competition is likely to get tougher as the economic headwind reaches hurricane strength. Deloitte informed Last week, fintech investment fell to $52.9 billion in the first half of 2022, down 24% from $69.6 billion in the first half of 2021. Banking technology providers were particularly affected, with a 14% year-over-year decline in the first half of 2022.

But Sanchez is unfazed by this, despite Savana’s relatively small customer base of about 10 client banks and fintech companies. Sanchez said “a number of organizations” will be working with Savana between now and the end of 2022, though he wouldn’t say how much – or what to expect in terms of revenue.

The Savana digital delivery platform is the first and only technology solution to help banks navigate the operational challenges of meeting changing customer expectations,” Sanchez said boldly. “The banking industry is undergoing an incredible transformation. Digital banking is rapidly evolving from a simple mobile banking application for consumers to an all-in-one digital enterprise. Installing all the necessary elements from the core to the client is a new imperative for banks aiming to become digital banking enterprises.”

Regardless of the strength of the Savana platform, like any vendor, it will have to deal with the challenges banks face when adopting new technologies. According According to a study by the Monetary Authority of Singapore, it takes six to eight months for a bank to research, validate and develop a prototype using fintech. One of the biggest hurdles holding back banks is initial investment in technology – Forbes reports that it can be up to 10% of the bank’s annual expenses.


Resolving chargebacks and other disputes through the Savana platform. Image Credits: shroud

Sanchez says Savana has an advantage in its experience building digital systems for banks and financial institutions. For example, Mike Wolfell, the company’s president and chief technology officer, previously led the development of process automation systems for mortgage origination and servicing, corporate administration, and finance as a consultant.

Many of Savana’s competitors also have finance specialists in their ranks. But generally speaking, Sanchez has something to say. One interview CFOs found that 70% believe that lack of skills or insufficient training remains the biggest barrier to a new digital initiative in their organization. In other words, outsourcing remains attractive.

“According to Bank tracker Digital-Firstalmost 50% of today’s consumers prefer digital banking only,” Sanchez said. “It will be important for banks to modernize their technology infrastructure to meet… rising expectations. Providing seamless customer service will be the difference between banks that thrive and those that don’t.”

To date, Savana has raised $54.2 million in capital. (The company previously closed a seed round in April 2010 and a small venture round in February 2020; Series A is its first round after the last.) The headcount is 200 and Sanchez expects it to grow to almost 400 by the end of the year.

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