What happened
Light Frame, a Swiss-based fintech, has raised $5.1 million in a seed round led by Fortino Ventures. The company plans to replace 30-year-old core banking systems with AI-powered infrastructure. The existing investors Rogue Venture Partners, New Stack Ventures, and Studio Alpha were also on board. The total disclosed funding now stands at $6.8 million, including the $1.7 million pre-seed round raised in May 2024.
Light Frame's AI-powered infrastructure is designed to replace 30-year-old core banking systems, which are expensive, slow to change, and lack the sophistication needed for modern AI applications.
The company has a partnership with Mambu, the Amsterdam cloud banking platform, to provide core banking services.
Light Frame's system is cloud-native, API-driven, and AI-enabled, making it a modular platform that banks can plug in or take as a whole.
The company's system reduces the time and cost of getting up and running, and it describes the offering as a wealth layer that will interface with a partner's core system.
Light Frame's system is entirely real-time, which means that banks can run AI on today's data rather than yesterday's data.
Source details: techfundingnews.com
Why it matters
The wealth management industry has been using outdated core banking systems for decades, which are expensive, slow to change, and lack the sophistication needed for modern AI applications. Light Frame's AI-powered infrastructure aims to address these issues and provide a more secure, resilient, and trustworthy solution for banks.
The wealth management industry has been using outdated core banking systems for decades, which are expensive, slow to change, and lack the sophistication needed for modern AI applications.
Light Frame's AI-powered infrastructure aims to address these issues and provide a more secure, resilient, and trustworthy solution for banks.
The company's system is designed to read plain-text SWIFT messages and suggest the appropriate booking, reducing the need for manual processing.
A human still makes the final call, and Light Frame has zero tolerance for security vulnerabilities and zero tolerance for inaccuracies.
The established players are also getting in, with Temenos acquiring additiv, a Swiss-based fintech, and Grand View Research forecasting the wealth management software market to reach $12.07 billion by 2030.
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What to watch next
The success of Light Frame's AI-powered core banking system will depend on its ability to demonstrate trustworthiness for live operations. The company plans to continue hiring in sales and go-to-market roles and invest more in security, resilience, and capability, with a focus on Europe, the Middle East, and Africa.
The success of Light Frame's AI-powered core banking system will depend on its ability to demonstrate trustworthiness for live operations.
The company plans to continue hiring in sales and go-to-market roles and invest more in security, resilience, and capability, with a focus on Europe, the Middle East, and Africa.
Light Frame's main focus is on private banks, and some clients buy single modules while others use the full suite.
The company's flexibility is both its biggest strength and a challenge, as banks have been waiting for innovation and need to be shown that Light Frame can be trusted for live operations.
The company's core team has over 10 people, with about 20 in the wider team.