February 19, 2015
Seed, which is part of the Winter 2015 Y Combinator class, wants to bring banking into the API arena and eradicate many typical irrelevant fees. As reported by TechCrunch, Seed has launched a banking API to allow its beta customers to integrate Seed’s financial service into their apps and tools. These financial services are currently available only in the US. Seed is offering modern, efficient, and secure mobile and web applications for online banking.
Seed will provide all of the core business banking services for businesses, all available online without the need for paperwork or cumbersome processes. For security purposes, Seed is offering up to $50 million of FDIC insurance, instead of the $250,000 offered by traditional banks. To help businesses save money, Seed is offering free domestic wire transfers, free ACH transactions, free check sending, and low-cost international payments.
Seed’s platform enables seamless integration with other business services and will act as a marketplace for offering competitive lending, credit, and insurance products from a community of providers. It should be noted that Seed is not a bank. It would be better described as a banking service that sits on top of existing banks. Seed is currently accepting business users based on an analysis of their profiles.
It’s high time that we see more of these banking service platforms. Traditional banks use one-size-fits-all platforms that employ legacy technologies, making even simple tasks quite complex. Moreover, innovative companies do need options like Seed in order to automate and integrate banking into their businesses. Seed can be ideal for small businesses that want to avoid fees for certain services, which Seed offers for free.