OatFi raises $24m to build credit network for B2B payments
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White Star Capital led the round, with participation from existing investors Portage and QED backing OatFi's effort to tackle one of the main pain points in B2B commerce: payment terms.
In traditional B2B transactions, buyers and suppliers often operate on opposing cash flow incentives. Suppliers seek fast post-delivery payments to recover working capital, while buyers look to delay payments to preserve operating cash and liquidity.
By embedding its underwriting, origination, and funding capabilities directly into B2B payment platforms within their AP, AR, and commercial charge card workflows, OatFi's APIs enable platforms to facilitate B2B transactions with built-in financing at the point where it's needed most.
'B2B payments are not just a money movement challenge—they're a data and workflow challenge,' says Michael Barbosa, CEO, OatFi. 'That's why we've focused on deep API integrations that offer working capital solutions within the platforms that businesses already rely on to pay and get paid.'
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McKinsey's estimate reveals that even a '30-40% average advisor adoption of more wealth-management-specific gen-AI-enabled tools and processes across the value chain and across the full advisor population by 2034 can deliver 6-12% of time savings – and, in turn, increase advisor capacity.' From suits to software Addressing a 100,000-advisor capacity shortage will be no easy feat, especially with the first wave of robo-advisors having emerged in the early 2010s, offering low-cost, automated portfolio management. They were simple, rules-based systems, efficient, but impersonal. Fast forward to 2025, and the landscape has evolved dramatically. Modern AI-driven platforms don't just rebalance portfolios. They analyse behavioural patterns, anticipate life events, and tailor advice to individual goals, risk appetites, and even emotional states. What began as a cost-saving tool has become a sophisticated engine for personalised wealth guidance. 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Legacy systems with hardcoded logic and manual processes struggle to accommodate rapid regulatory changes while maintaining audit readiness. The compliance burden extends beyond implementation to documentation and reporting. Modern regulations require granular transaction tracking, real-time risk monitoring, and comprehensive audit trails—capabilities that legacy architectures often lack without significant workarounds. Competitive Pressure from Digital-Native Challengers Fintech startups and embedded finance providers built on cloud-native infrastructure consistently outpace traditional institutions in product innovation cycles. These challengers deploy new features weekly rather than quarterly, offer personalized services through advanced analytics, and provide seamless digital experiences that legacy systems cannot match without extensive customization. The threat extends beyond direct competition. Big Tech companies entering financial services with platform-based approaches force traditional institutions to reconsider their technology foundations to remain relevant in evolving ecosystems. Evolving Customer Expectations Digital-first customers expect instant account opening, real-time payment processing, and personalized financial insights. Legacy systems designed for back-office efficiency rather than customer experience struggle to deliver these capabilities without introducing significant latency or operational complexity. The gap between customer expectations and legacy system capabilities continues widening as digital experiences in other sectors set new standards for responsiveness and personalization. Strategic Modernization Approaches for Financial Services Incremental Architecture Evolution Financial institutions typically cannot afford the operational risk of wholesale system replacement. Successful modernization strategies focus on incremental transformation that preserves business continuity while enabling progressive capability enhancement. Core system wrapping with API layers represents the most common initial approach. This strategy enables modern applications and partner integrations to interface with existing systems without requiring core logic changes. The approach provides immediate value while establishing the foundation for more comprehensive modernization efforts. Cloud-First Infrastructure Strategy Hybrid cloud adoption allows financial institutions to balance regulatory requirements with operational efficiency. Non-critical workloads such as analytics, customer portals, and development environments migrate first, while sensitive transaction processing remains in controlled environments until regulatory frameworks evolve. 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This requires careful planning around data residency, audit logging, access controls, and disaster recovery capabilities. Modern architectures actually enhance compliance capabilities through improved observability, automated monitoring, and granular access controls. Documentation and change management become critical during modernization to satisfy regulatory requirements for system understanding and control procedures. Operational Risk Management Financial institutions require comprehensive testing strategies that validate not just functionality but also performance under stress conditions. Modern infrastructure enables more sophisticated testing approaches including chaos engineering and automated load testing that improve system resilience. Rollback capabilities and feature flagging ensure that modernization efforts can be reversed quickly if issues emerge, reducing the operational risk of transformation initiatives. Skills Development and Team Alignment Successful modernization requires workforce development alongside technology transformation. Teams accustomed to legacy systems need training in cloud-native development, API design, and modern DevOps practices. Organizations often supplement internal teams with specialized expertise during transition periods to accelerate knowledge transfer and reduce implementation risks. Measurable Business Impact Operational Efficiency Gains Modernized financial institutions typically achieve significant cost reductions through automated processes, reduced manual interventions, and improved system reliability. Cloud-native infrastructure provides variable cost structures that align technology spending with business growth rather than fixed capacity planning. Enhanced Customer Experience Modern architectures enable real-time personalization, instant transaction processing, and seamless omnichannel experiences that drive customer satisfaction and retention. The ability to launch new products rapidly allows institutions to respond quickly to market opportunities. Regulatory Responsiveness Modern systems adapt to regulatory changes more efficiently through configuration rather than code changes. Automated compliance monitoring and reporting reduce manual effort while improving accuracy and auditability. The Path Forward Financial services modernization represents a strategic imperative that cannot be indefinitely deferred. Institutions that approach transformation systematically—balancing innovation with risk management—position themselves for sustainable competitive advantage in an increasingly digital financial ecosystem. The question facing financial leaders is not whether to modernize, but how to execute transformation that enables growth while preserving institutional stability and regulatory compliance.
