Fintech secures $50m for developing business bank

More recently, Zeller has been raising funds for the development of its business banking platform and to expand its team.

The fintech secured $50 million from US-based venture capital firm Spark Capital, along with its partners Square Peg, Apex Capital Partners and Addition.

The investment has contributed to an $81 million total raised within the last 12 months.

Zeller has also reported that 1,500 Australian businesses have signed up for its payments solutions in its first month of operating.

Ben Pfisterer, chief executive and cofounder of Zeller, commented that more than 80 per cent of merchants who signed up had previously banked with one of the big four.

“Our team hears how frustrated these business owners are by the lack of service and support they receive and that they’re paying incredibly high fees for outdated eftpos hardware rand underdeveloped banking technology,” Mr Pfisterer said.

“The fact we’re seeing so many established businesses switching to Zeller from the banks motivates us to double-down on our efforts to build more business banking products that serve the needs of growing businesses.”

Zeller’s rollout followed a survey of businesses it completed in April, where it found that 61 per cent of businesses are looking to switch banking providers because of high costs and expensive fees, slow deposits to their funds impacting cash flow, and not being able to access local support.

Two-thirds of businesses in the survey (67 per cent) also indicated they would prefer a non-major bank, while more than half (57 per cent) said they would opt for a new digital-first bank.

“Australia’s business banking landscape is dominated by a smaller group of incumbents and is ripe for disruption through simpler, more transparent pricing, best-in-class technology and better customer service,” Spark Capital growth investor James Kuklinski said.

[Related: Earlypay raises capital to fund new product]