Fundcraft, Banking Circle Partner to Speed Up Account Openings for Fund Managers

Luxembourg-headquartered Fundcraft and Banking Circle have announced a new partnership to help fund managers speed up the opening of accounts.

The fintech Fundcraft and payments bank Banking Circle are working in partnership to deliver "seamless" access to account openings for fund managers. Banking Circle is one of Fundcraft's primary bank account providers, making accounts accessible through Fundcraft via API integration. 

The partnership is expected to allow fund managers to be connected as closely as possible to national clearing schemes, enabling faster account opening and delivering low operating costs and fees. It also means Fundcraft can add this facility to its platform without the need to obtain its own banking licence.

Launched in 2021 and having recently secured €5 million in Series A funding, Fundcraft is working to transform the operating model of fund management, providing digital-native fund operations that "centralise, optimise and automate the entire fund lifecycle". 

As Fundcraft's founder & CEO Julien De Mayer explained, fund administration is a large, growing market: "Fundcraft's digital-native operations streamline processes, automate data management and enhance stakeholder interactions. This not only lowers costs but significantly improves outcomes for our customers, setting a new standard in fund management."

"Banking Circle’s reputation as a technology-led payments bank that is breaking down barriers to cross-border payments make it a perfect fit for Fundcraft clients," continued Ms De Mayer. "And its accounts, accessible through Fundcraft via API integration, are quick to open."

Laust Bertelsen, CEO of Banking Circle, added: "Banking Circle's innovative solutions are designed to eliminate costs and delays in account setups and payment processing. Investment managers can easily manage their accounts and create and approve payments through Banking Circle, making us an ideal partner for Fundcraft. We are like-minded, tech-first businesses that are applying technology to reduce cost and improve the speed of financial transactions."

Fundcraft noted it has a clear goal to overcome some of the barriers funds face opening accounts with traditional banks as well as to add treasury management and payments features into its digital platform. Supporting this goal, it has launched a partnership programme and API integration with a number of banks, including Banking Circle as one of its primary bank account providers. 

Banking Circle enables fund managers to open Alternative Investment Funds (AIFs) and corporate accounts on behalf of their clients. As an EU authorised credit institution headquartered in Luxembourg, Banking Circle offers AIFs, General Partners and Special Purpose Vehicles (SPVs) fast account openings for fund deposits in multi jurisdictions, in 24 currencies at "competitive" FX rates. With AAA rated counterparty risk on balances held in Banking Circle’s Fiduciary account, it reportedly gives Fundcraft an "important added value" for its clients.

The partners added that Fundcraft has gained significant traction since its inception in 2021. It boasts more than 22 asset management clients, including Moonfare, Stableton and Tenity, managing more than 135 funds on their behalf and representing more than €6 billion in commitment. The Series A funding round announced in May 2024 will be used to expand Fundcraft's product and market reach.