Karmijn Kapitaal, 5Square and other existing investors also participated in the round, which represents the largest funding to date for Five Degrees.
The investment will support Five Degrees in launching their entirely new, cloud-native core banking platform, as well as increasing sales and marketing efforts in 2021. With a modular architecture, the new cloud-native offering uses microservices to deploy core banking solutions for accounts, lending and customer data management. Five Degrees is currently in discussions with several launch customers.
With more than ten years of experience supporting banks and lenders in The Netherlands, Iceland, Germany, UK and the US, Five Degrees currently serves over 20 clients including ABN AMRO, TD Bank, Van Lanschot and KNAB. Five Degrees’ specialist core banking technology offers an innovative alternative to the largely outdated product systems preventing banks from being data-oriented and future-proof.
Martijn Hohmann, CEO of Five Degrees, commented: "I am extremely pleased with this funding round. It validates the incredible work performed by our team over the past two years, building a cloud-native core-banking platform from scratch. These solutions reflect our decade of experience and learnings from serving banks in Europe and North America. Five Degrees is geared to help banks reap the benefits of cloud-native technology”.
Willem Willemstein, Founder and General Partner of Velocity Capital FinTech Ventures, adds: “We see that many banks face stiff competition from digital challenger banks and other emerging FinTechs. Five Degrees is the perfect partner to help established banks offer a truly digital experience. In the past ten years, Five Degrees has successfully partnered with several full-scale banks, providing their core banking systems. We believe the vast majority of banks must upgrade their legacy systems over the coming years, and the team at Five Degrees is the best partner to help them”.