Leader Bancorp in Arlington, Mass., has completed the spinoff of ZSuite Technologies, a fintech that automates rent and condo payments to landlords and property managers.
ZSuite said in a press release Friday that it had also raised $6 million of outside funding to finance a nationwide launch of its products to banks and credit unions. The firm’s technology digitizes security deposit account openings and enables state-specific security deposit compliance — services banks provide to landlords.
The $1.5 billion-asset Leader began developing new financial technology products in 2015 to differentiate itself and attract deposits without adding branches. As interest from other lenders grew, the bank decided to make ZSuite independent so it could grow and work with other banks and credit unions.
Eight other financial institutions will join Leader as ZSuite’s initial partners.
“Full independence … was necessary,” said Jay Tuli, ZSuite’s chairman and an executive vice president at Leader.
ZSuite’s founding executive team will remain in place, including CEO Nathan Baumeister and Chief Sales Officer Aaron Coleman. Leader's former head of product development, Jessica Santana, is ZSuite’s chief product officer.
"In a world of competing fintechs and the migration from physical banking to digital banking, banks and credit unions need solutions that solve real world problems for their most profitable client segments,” Baumeister said in the release. “We are excited to help."
