PeopleHedge, a FinTech focused on boosting the non-interest income of community banks and credit unions, has bagged $1.4m in a seed round.
The company received backing from Holt Xchange as well as Gustavson Capital and Blufin Equity Partners.
PeopleHedge has developed SmartRoute technology, which creates a real-time auction for FX payments. The technology compresses pricing and makes banks competitive with rivals.
The firm’s technology stack was built to create core integrated FX trading marketplaces. Used for cross-border payment transactions, this lessens friction in the process while saving money for the end customer.
PeopleHedge plans to use the funding to grow its US footprint by increasing sales efforts to banks and credit unions in need of more services and revenue opportunities.
The company said it was ‘laser-focused’ on supporting community institutions with digital solutions that allow them to better serve their customers and their communities.
PeopleHedge is currently in the process of becoming Acceleron Bank, a digital correspondent bank in formation. The change is subject to regulatory approval.
PeopleHedge CEO Damon Magnuski said, “This funding allows us to grow our market share and continue down the path of forming a digital correspondent bank. We thank our investors, partners, and customers for their continued support and look forward to removing more middlemen from the payments process.”
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