Torpago shifts focus to enhance community banking

"Community Banking Shift"

Financial technology company Torpago has shifted its focus toward providing tech solutions for local community banks, enhancing the traditional banking experience. The company, whose primary operations involved commercial credit card and expenditure management services, now aims to equip traditional banking institutions with advanced tech tools.

The new services by Torpago include digital interfaces for online banking, automated loan processing systems, and enhanced security measures for transactions. This shift, according to the company, aims to make banking more accessible and user-friendly for various customers. It also marks a transition from competition with banks to collaboration, a move that showcases Torpago’s commitment to inclusivity in the financial services industry.

Torpago’s CEO, Brent Jackson, stated that the company now considers software providers like Fiserv and Finastra as its main competitors, moving away from competing with credit card and spending management companies like American Express and Capital One. According to Jackson, this pivot stemmed from Torpago’s strategic shift toward providing comprehensive fintech solutions and empowering small-scale banks with advanced tech capacity to rival leading software providers.

In 2023, Torpago introduced a transformative product known as ‘Powered By’, designed to revolutionize services for community and regional banks. The product, specifically developed for institutions with net assets under $20 billion, enables banks to implement proprietary branded credit cards and expense management systems using Torpago’s platform. This venture revolutionized the services offered by small-scale banks, enabling them to deliver products competitive with those provided by large-scale financial institutions.

The ‘Powered By’ product by Torpago simplifies the application process for smaller financial institutions, eliminating the need for exhaustive technical development and operational management. This efficient, cost-effective solution bridges the gap between traditional banking services and modern fintech solutions.

Torpago’s technological transformation in community banking

Torpago provides comprehensive customer support and guidance, helping banks navigate the implementation process.

‘Powered By’ tools integrate seamlessly with over 200 accounting systems, issuing immediate virtual and tangible cards while prioritizing the branding of client banks. Expansion of these services enhances the banks’ income, improves their customer experience, and encourages customer deposits. These tools automate accounting workflows and facilitate the rapid issue of cards to cater to various client needs. They also lay emphasis on the banks’ branding, maintaining the client’s image.

Torpago sets itself apart from its competitors by emphasizing data sharing practices, providing banks with detailed insight into their customers’ spending patterns. Following its strategic shift from smaller establishments to banks, Torpago currently works with 300 clients, down from 2,000. However, the company plans to expand its bank partnerships within the next two quarters.

Torpago’s innovative approach attracted $10 million in a Series B fundraising round, co-managed by Priority Tech Ventures and EJF Ventures. The company’s total equity funding now stands at approximately $18 million. The funds will be used for strengthening implementation and regulatory resources and further developing its product line. An AI-powered travel booking engine for its cardholders is also set to be launched.