- Amount, spun out from online lender Avant earlier this year, helps banks digitize consumer products.
- On Wednesday, the startup announced an $81 million Series C led by Goldman Sachs, which Amount will use to meet growing demand from bank customers.
- Forming partnerships with banks, rather than trying to compete with the same services, represents one way some fintechs are entering online banking and consumer lending spaces.
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To compete as a consumer bank is an uphill battle. Startups looking to upend traditional banking face significant barriers to entry — for one, a high cost of capital — even as the coronavirus pandemic continues to accelerate industry-wide transitions to digital banking.
It’s a strength, then, that Amount’s strategy is to help traditional banks digitize their consumer offerings, not supplant them with alternatives. Spun off from online lender Avant in February, Chicago-based Amount works with banks