Zūm Rails, a company merging open banking and instant payments through an all-in-one payments gateway, has launched a large-scale banking as a service (BaaS) project.
Led by Miro Pavletic, the company’s newly appointed head of banking as a service, the offering will enable companies to offer a new suite of bank-like services directly to their customers using the same platform that already powers their payments capabilities.
Pavletic will spearhead Zūm Rails’ BaaS product roadmap, including the ability to settle transactions, validate identities and assess potential fraud in real-time–and merge it with Zūm Rail’s existing payments offerings.
He will also work to speed up the development and rollout of these functionalities on a single platform, so that companies can ‘outpace regulators’ open banking timelines and leverage AI to confidently account for risk’.
Pavletic founded and led the payments company STACK! to its 2020 acquisition by Credit Sesame, where he went on to launch Sesame Cash. Prior to this, he was a founding member of Richard Branson‘s company Virgin Plus. With his passion for customers and execution, the company scaled from zero to one million customers, then to more than one billion in just over five years, and was subsequently acquired by Bell.
“Over the past five years, we’ve proven that companies can move forward with any payment rails they want, including instant payments, without waiting for regulators to create the infrastructure for them. Now we’re looking to do the same with bank-like services,” said Marc Milewski, CEO at Zum Rails. “Miro is one of few people in our industry who has been able to consistently bring ambitious projects like this to life, and we will lean on his experience as we work to solve the North American market’s most significant challenges.”
Pavletic additionally held executive-level positions at TD Bank, CIBC Capital Markets and CSAM, where he led efforts to build digital wallets for large banks leading up to Mastercard’s acquisition of the company.
“There is an immense market opportunity for non-banks to harness BaaS and accelerate their speed to market,” said Pavletic. “Two major roadblocks currently standing in the way of implementation are regulators pushing back the goal post on open banking and the need for multiple vendors and resources. Our work will remove these roadblocks so that our clients can better personalize their experiences, deepen customer relationships, and accelerate their time to revenue.”
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