2023 has been a remarkable year for Episode Six and our impact continues to grow stronger in the payments space. This year we achieved some key milestones and accomplishments, including $48 million Series C financing led by Avenir. Raising an investment round is a significant event, but this was especially exceptional because of the challenging market conditions that appeared during the year. Not only is this a great vote of confidence for our business model and growth projections, but it also positions us well to capitalize on the opportunities we’re seeing in the market.
For the second consecutive year, Episode Six was awarded Best Places to Work in Fintech by American Banker. E6 also ranked in built in’s Best Places to Work in Austin. We have always put great emphasis on our people and the culture of E6, and it’s great to know that our team feels supported in the workplace. Our global team has put in a lot of hard work creating something special.
This year E6 officially welcomed our first-ever CRO, Brian Muse-McKenney. Brian brings a tremendous amount of knowledge and expertise about the banking and payments industry. He was also one of our first customers, so he brings a unique perspective as someone who faced the challenges many banks, technology companies, and brands are still facing.
2023 has also been a year of developing lasting partnerships. E6 partnered with First Fidelity Bank of Oklahoma City to launch a BaaS solution built for the next generation of embedded financial services players, such as Unifimoney. We also partnered with TransPecos Banks, and launched a CaaS solution with card issuing and processing products for their customers. Another key partner from 2023 is Montonio, an ecommerce checkout orchestration platform. Montonio leveraged our technology to create a payments ecosystem surpassing traditional merchant acquiring and processing.
Needless to say, E6 is coming to the market from a position of strength. This year we launched Business Now, Pay Later™, a first-of-its-kind solution that enables banks to tailor loan products directly in their business banking channel. This is a testament to the flexibility of our platform; with rising interest rates, we recognized a need in the SME lending market for more flexible options. We were quickly able to build and launch a solution that provides a timely product to our customers and meets a growing market need for installment options.
Small and medium-sized enterprises (SMEs) are the lifeblood of economies, and working capital is their most pressing need. Market research shows that 89% of SMEs today are considering alternative providers to their primary bank, as SMEs are looking for flexible credit solutions and repayment options to help their business thrive. E6 has taken the ingenuity of consumer installments and customized it to be purposeful for banks and their clients.
As we embark into 2024, the insights and achievements gained in 2023 bolster us for what lays ahead in the new year. Banks and financial institutions need solutions to modernize their technology and complex infrastructures. The availability of seamless, instant, and contactless payments will continue to grow. A 2022 report by Juniper Research predicted that by 2027, the total value of contactless transactions will exceed $2 trillion. It’s a clear indicator of where the future of financial transactions is heading.
Many legacy tactics can’t keep up with today’s digital society and new demands, pushing banks and FIs behind their advancing competitors. According to IDC Financial Insights, global financial institutions are projected to spend a staggering $57 billion on outdated payment systems by 2028, with costs rising at a significant rate of 7.8% annually. As a global provider of payments processing technology, E6 is key to that solution. We provide banks with the tools and capabilities to stay ahead in an increasingly competitive banking landscape. With proper implementation, it can be a powerful enabler of growth and innovation for any financial institution.
2023 was an amazing year of growth, but the pace of growth in the financial technology space is always increasing. 2024 is going to be a huge year for us, and our customers. I’m extremely proud of the results we’ve achieved in the last 12 months, and I couldn’t be more excited about the path ahead.
Ready to leave your legacy technology in 2023? Contact us today. 