Finxact , a core banking platform provider in the US, has announced that BetaBank will power its product ecosystem using the Finxact cloud-native core. BetaBank is in formation, having submitted its banking charter application in April 2022.

Concomitant with its application and fund-raising efforts, the bank is working to build from scratch a fully automated digital lending platform driven by algorithms designed to remove inherent decisioning bias from traditional underwriting processes for small businesses. BetaBank will run a next-gen core in Google Cloud. Its product ecosystem is composed of providers that will connect via APIs to the open Finxact core.

As a purely digital bank, it will have the ability to lend across the country, but its focus will be on the Chicago-area community of small businesses.