Colorado National Bank rebrands to Transact Bank and goes live with Fiserv
Colorado National Bank (CNB), which was bought by the owners of Latvian card acquiring and processing fintech Transact Pro in 2018, has relaunched as Transact Bank.
Two years ago, Mark Moskvin and Maxim Yaroshewsky bought then-named CNB for $9 million and put in $2 million of their own money to boost its capital.
The bank had filed for Chapter 11 bankruptcy in November 2017, also known as a “reorganisation” bankruptcy.
Moskvin said in August 2018: “Our knowledge and experience will help to build innovative new banking services for the bank that will transform it into a modern bank for the 21st century.”
Less than two years on, the 1862-founded bank has a new name to convey “the range of payment processing and card issuing solutions” which it will be providing to domestic and cross-border businesses.
As for the bank’s technology revamp, the firm went live with Fiserv last week. It selected the banking tech provider’s Precision core banking system, which supports new account and transaction processing, document management and imaging, online banking, business intelligence and risk management.
The platform is made up of technology from Progress Software Corporation, as well as pSeries servers from IBM and operating systems from AIX.
On its website, Fiserv says Precision “supports an on-demand environment and offer[s] a low-cost entry point, fast deployment, efficient scalability and lower ongoing maintenance costs”.
Transact Bank is already a Mastercard, Visa, Swift and Federal Reserve Bank member, and will work alongside Transact Pro’s platforms to create what Moskvin and Yaroshewsky are calling “the first true platform to support direct domestic and cross-border local payment processing and card issuing”.
“We are proud to build on our momentum as an innovative fintech-focused organisation with a solid presence in the US and EU,” says Moskvin in company statement.
“Leveraging technology and expertise from both continents will extend our clients an unparalleled platform for conducting commerce, while lowering cross-border fees.”
This sole focus on payment processing and card issuing businesses is rare – if not potentially unheard of – for a national bank.
The only other case of a fintech buying a US bank happened in February this year, when San Francisco-based peer-to-peer (P2P) lending firm LendingClub bought Radius Bank for $185 million.
Looking ahead, Transact Bank’s services will include bank card acquiring, bank transfers, foreign exchange services, EU-issued cards, and bank accounts which form a bridge between the US and EU.