Dealflow | December 10, 2018

Cross River secures $100 million to help fintech firms tap mainstream banking

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, December 9 – New Jersey-based community bank Cross River’s mission is to boost financial inclusion by helping financial tech ventures access mainstream banking infrastructure without securing a banking license. The bank has raised $100 million in a funding round led by private equity firm KKR, with backing from CreditEase, LionTree Partners, Andreessen Horowitz, Battery Ventures and Ribbit Capital.

Cross River launched in 2008 as a partner to new financial services companies, offering them compliance guidance, and access to services otherwise only available to Federal Deposit Insurance Corp.-licensed banks, like certain types of lending and money transfers. The bank works with companies like online lending company Affirm and money transfer company Transferwise.

It also recently partnered with MasterCard to launch cardless ATM services, which can be used for “compensating gig employees, reaching the underbanked and disbursing emergency funds.”

Cross River’s $100 million in funding includes $75 million from KKR’s $2.2 billion Private Credit Opportunities Partners II fund. It follows a $28 million raise in 2016.