Rize and MX Announce Partnership to Better Assist FinTechs
Following a record-breaking year for the FinTech sector that saw several high-profile investment rounds, initial public offerings, and breakthroughs, 2022 has picked up where 2021 left off. However, so far, this year seems to be one filled with mergers and acquisitions, as several such deals have recently been announced. At the same time, while some startups are joining forces in more permanent ways, many others are working in tandem less formally.
For example, recently, the financial data platform MX and embedded banking platform Rize announced a new partnership. By creating a single API, the combined services will further help FinTechs, neobanks, and other companies build and launch financial products. Together, Rize and MX expect to be able to reduce development times as well as costs for their respective customers.
In recent years, both MX and Rize have found success in their own rights — although the former is notably larger. Utah-based MX has raised a total of $450 million to date including a $300 million Series C round last year while Virginia’s own Rize has seen investments totaling $13.4 million following an $11.4 million Series A in September. Most notably, according to MX, their services currently power 85% of digital banking providers that reach more than 200 million consumers. As for Rize, they’ve also recently announced partnerships with Walnut Insurance and TrueNorth among others.
Sharing a bit of how the partnership with MX came to be, Rize’s founder and CEO Justin Howell explained, “As we tackle the enormous goal of rebuilding the financial infrastructure, our vision of making a company’s task of integration as simple as possible has aligned perfectly with that of MX. Now developers and data providers can spend less time developing and more time focusing on their customers.”
Meanwhile, MX’s EVP of Partnerships Don Parker said of the arrangement, “Our partnership with Rize is all about developing new financial products and services through one API. By cutting the associated time and costs of development, we’ll open up MX functionality to a wider range of fintech companies and organizations already working to improve financial strength and access to quality financial tools.”
Once again, while it’s easy to imagine that FinTech startups are all in competition with each other, this MX-Rize partnership shows that there’s plenty of opportunity for strategic team-ups. What’s more, the result of these two FinTechs working together is a more beneficial platform for future startups to build their products with. Because of this, the announced partnership seems like a true win for all involved and continues what’s sure to be another blockbuster year for financial technologies.