TagPay, a provider of a scalable and open Core Banking System technology for financial service providers, is pleased to announce a € 25M investment by Long Arc Capital. With this investment, the NYC-based private equity firm Long Arc Capital takes a majority stake in TagPay, while co-Founders Yves Eonnet (CEO) and Hervé Manceron (COO) will continue in their leadership roles with the company.
The financial services industry is at a pivotal moment of digital transformation. The erosion of profitability and the emergence of new competitors is forcing banks to invest heavily in IT systems. While there has been some success digitizing various aspects of the omnichannel, neo-bank-paradigm, the true opportunity lies in “core banking systems”, the back-end systems provides the various capabilities needed by banks to rapidly design and deploy innovative, personalized financial products.
TagPay, founded by Yves Eonnet and Hervé Manceron, provides a cost-efficient, next-gen core banking system to financial institutions. The company’s product transforms once costly and inefficient legacy systems into scalable, open architecture platforms, that allow financial institutions to innovate and improve customer experience. Similarly, new market entrants benefit from the rapidly deployable nature of the product, enabling them to focus on building their offering and distribution. Since launching the product in 2016, nearly twenty financial institutions – including top-tier European banks – now use TagPay to power their digitization.
TagPay, which had previously raised € 7M, announces today that it has secured an investment of € 25M from Long Arc Capital to strengthen its sales, product and technical teams and to fund growth. By 2023, TagPay seeks to double its banking customer base while multiplying by 5 the number of end-customers provided with secured digital banking services. In this new phase of growth, Société Générale remains a minority shareholder and a longstanding partner, reaffirming its trust in TagPay and its continuing support to the management team.
“The regulatory evolution, the new expectations of end customers and the disruption in financial services makes the modernization of core banking systems a necessity,” said Yves Eonnet, CEO of TagPay. “Today, thanks to its open and agile architecture system, TagPay is the premier solution to address these challenges. We are very happy to have the support of Long Arc Capital, whose financial and operational support will allow us to grow rapidly over the next 3 years.”
Vincent Fleury, Partner at Long Arc added, “As financial institutions begin to see the benefits of next generation core banking systems, TagPay will demonstrate its full potential, offering a configurable and connectable banking environment that meets the highest security standards. We are delighted to support them in this new phase of growth.”