APEX Clearing Corporation

Apex is an independent, full-service clearing firm helping power the digital revolution in financial services.

<div>Apex Clearing (Apex) develops application programming interfaces (APIs) that provide clearing and custody infrastructure for FinTech providers to offer brokerage services. In addition to clearing, Apex provides tools for a range of technical services including accounts, trading, portfolios, and transfers, among others.</div>

Democratizing financial technology with a suite of API-based solutions

FinTech Infrastructure

Apex Clearing Corporation is a custody and clearing platform that provides clearing and custody services to some of the top online brokerages in the US. It is a subsidiary of Apex Fintech Solutions Inc., a fintech firm that powers innovation and digital wealth management solutions. Apex Clearing acts as an agent to carry customer accounts and execute trades on behalf of its clients, which include registered investment advisors and brokers. As of April 2022, Apex Clearing serviced over 200 broker-dealers and financial service firms, facilitating trading for millions of customer accounts. The company does not provide any advisory services directly to retail investors.

Apex Clearing New Account Disclosures

Apex Clearing Custodial Agreements

U.S. Bank, Apex Fintech Solutions to deliver real-time payments to brokerages

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Apex Clearing

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 Apex Clearing (Apex) develops application programming interfaces (APIs) that provide clearing and custody infrastructure for FinTech providers to offer brokerage services. In addition to clearing, Apex provides tools for a range of technical services including accounts, trading, portfolios, and transfers, among others. 
 
 
 
 
 Apex claims its platform is a white-label infrastructure platform that provides customizable tools and technology for developers to build solutions. Over the eleven months ending November 2020, its platform processed 1.7 million trades daily on average, and 19.8 million new accounts were established. 
 
 
 
 
 Apex reported a revenue of USD 145.9 million for Q1 2021 (up 98% YoY), and the company remained profitable with net income amounting to USD 36.3 million (net income margin of 24.9%). Moreover, as of Q1 2021, the company had 14.4 million customers and also had USD 92 billion in client assets under custody. In February 2021, the company entered into an agreement with SPAC Northern Star Acquisition, to go public at a USD 4.7 billion valuation. Apex was to receive USD 850-1,000 million in funding through the investment. 
 
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Cross River Bank provides a white-label banking-as-a-service (BaaS) platform for enterprises, combining banking services, payments, and marketplace lending infrastructure to build fintechs. Its solutions comprise demand deposits, savings accounts, credit and debit cards, and payment clearing services, including automated clearing house (ACH) and real-time payments. The company also provides banking and payment infrastructure for the crypto industry, including risk management services for its crypto clients. Key customers and partnerships As of December 2020, the company had over 400 employees, and had entered into more than 30 partnerships. Moreover, as of March 2021, the platform had been used to support over 375,000 small businesses through the paycheck protection program (PPP).Cross River Bank teamed up with UK-based BaaS provider <a href="https://sp-edge.com/companies/421515">Railsr </a>in January 2019 to launch a common API for their platforms to be used globally. As of April 2022, Cross River had over 80 clients including lenders such as Affirm, Best Egg, and Upstart, neobanks such as <a href="https://sp-edge.com/companies/220119">Revolut </a>, and blockchain-based payment processing platform GreenBox. The platform reportedly originated over USD 24 billion in loans per annum, around 10x the value of loans it originated in 2015. Cross River Bank has expanded its operations by acquiring Betterfin, a platform offering lending-as-a-service (LaaS) solutions, in November 2021. Through the acquisition, Cross River Bank leveraged Betterfin’s software to digitize parts of the small-business lending process (such as origination and underwriting).The company partnered with <a href="https://sp-edge.com/companies/1643">American Express </a>(Amex) to enable FinTechs to issue credit cards through Cross River Bank, on the Amex network, while also providing select Amex benefits to the FinTechs.Funding and financials The company <a href="https://sp-edge.com/updates/9458">raised USD 620 million in funding </a>co-led by Eldridge and a16z, at a valuation of over USD 3 billion, to invest in product developments, recruitment, international expansion, and boosting strategic partnerships.

Cross River Bank

Synctera was co-founded in 2020 by Peter Hazlehurst, the former head of Uber Money, who previously led the development of Google Wallet. The company offers an API-based infrastructure platform for community and regional banks to find and partner with FinTechs. This enables FinTechs to leverage the former’s licenses to embed FDIC-insured mobile checking, debit cards, savings accounts, and payment innovations, among other features. The API platform offered to the banks will then be sold to the FinTechs to code on. Although the end customers interact with the FinTechs, they legally belong to the bank.<a href="https://sp-edge.com/updates/8117">Synctera mainly charges the banks </a>based on the interchange fees they earn (half of the interchange fees, as of January 2022) from the services provided. It does not charge them an initial amount to use the platform. Moreover, the platform also embeds fraud-as-a-service and charges FinTechs on a per transaction basis (4 cents per transaction) should they choose to use it. It subsequently shares that revenue 50/50 with the banks.The company launched the “t-minus10” project in January 2022, which offers a live sandbox for FinTechs to build apps, test, and go to market, enhancing their access to banking partners. It subsequently launched a “Smart Charge Card” (APIs to build, launch, and issue charge cards) and “White-label Banking App” (a codebase for developers to build embedded banking products or neobank apps) infrastructure in October 2022.Key customers and partnershipsIn February 2022, Lineage Bank (a community bank in Tennessee) and GoGetr (FinTech aiming to promote health and wealth management) became the first companies to launch a banking solution using the Synctera platform. As of March 2023, the platform was working with around 50 fintechs, of which 14 were live (including Wayapay and Float). Synctera reportedly had over 20 implementations set for launch in the following two months.Synctera announced a new card issuing and management infrastructure offering (Card-as-a-Service), in July 2021, which it developed in partnership with Mastercard and leading card issuing infrastructure disruptor, <a href="https://sp-edge.com/companies/64287">Marqeta</a>.Funding and financialsIn March 2024, Synctera raised USD 18.6 million in <a href="https://sp-edge.com/updates/27244">Series A1 extension</a> co-led by Lightspeed and Fin Capital. The company earmarked the funds to support business growth by facilitating more complex use cases across the US and international markets. The company also <a href="https://sp-edge.com/updates/16980?industryIds=53">raised USD 15 million</a> in funding led by NAventures in March 2023, to invest in expanding the platform’s use cases and broadening its geographic footprint beyond the US (including expanding to Canada). Meanwhile, Synctera has also partnered with the National Bank of Canada to enable companies to launch FinTech apps and embedded banking products in Canada.

Synctera

Based in the UK, Weavr, formerly known as Open Payments Cloud, was spun out of payment provider Ixaris in 2019. Weavr offers the infrastructure for enterprises to embed banking services across various industries, including education, fitness, logistics, etc. Weavr’s “Meta” platform combines multiple banking and payments partners in one platform through application programming interfaces (APIs). Using the APIs, enterprises can embed virtual banking services such as card payments, fund transfers, and international banking accounts.Weavr expanded its operations to Singapore in November 2022, as part of its global expansion plans. Key customers and partnerships As of July 2021, Weavr’s customers included Finway, Thanks Ben, and MySkillCamp, among others. In October 2019, Weavr partnered with payment service providers Global Processing Services (GPS), Paynetics, and iDenfy to enable developers to create and run sophisticated and streamlined payment experiences for their European customers through Weavr. Funding and financialsWeavr <a href="https://sp-edge.com/updates/8647?industryIds=53">raised USD 40 million </a>in Series A funding in February 2022, led by Tiger Global, less than a year after <a href="https://sp-edge.com/updates/4166">raising GBP 4 million (USD 5.5 million) </a>in seed funding in July. The funds were earmarked for business development and recruitment to support Weavr’s expansion to the US market, while also supporting its continued expansion in the UK and Europe.

Weavr

MX offers an open finance portal, data connectivity application programming interface (API), and MX platform API for banks, credit unions, and other financial service providers. The company’s solutions allow its clients to utilize financial data to reduce fraud, approve loans faster, and improve their customer experiences. In addition to APIs and connections, MX also offers a range of capabilities, including data aggregation, analytics, financial feed insights, wealth and investment services, and verification services. MX looks to enable banks and financial institutions to launch next-generation services and apps that automate and personalize financial experiences. As of January 2021, the company noted that it worked with more than 2,000 banks, credit unions, and FinTech companies, and its platform reached over 200 million end-users. Moreover, it also powered 43 of the top 50 digital banks as of the same period. In <a href="https://sp-edge.com/updates/8753?industryIds=53">February 2022, MX partnered </a>with <a href="https://sp-edge.com/companies/361160">Rize </a>, to enable users to access Rize’s banking infrastructure to build, launch, and scale financial products through a single API, thereby reducing the development time and cost. In January 2021, MX raised USD 300 million in a Series C funding round led by TPG Capital, at a valuation of USD 1.9 billion. The newly raised funds are to be invested in improving MX’s capabilities, expanding its global presence, and increasing its workforce. In January 2021, MX noted that its headcount tripled over the past two years, reaching 550 staff members. The company appointed Shane Evans as interim chief executive officer (CEO) in January 2022, to prepare the company for an IPO or sale (at a valuation of over USD 5 billion) and oversee its growth.

Bankable is a banking-as-a-service (BaaS) infrastructure provider allowing financial institutions and corporations to utilize its API to integrate banking services. It provides a platform for its enterprise customers to offer modular banking services, including ledger management (process data from multiple banks to support cash management for global corporate affairs), digital banking, payment cards, and e-wallets. The company expanded its platform by <a href="https://sp-edge.com/updates/19662">acquiring Arex Markets </a>in June 2023, to embed working capital solutions (such as flexible invoice financing, corporate credit cards, lodged cars, and revolving credit). The company has a global presence, with operations spanning from the US to the Middle East as of January 2021. Bankable noted that the expansion of its global footprint also helps its European and US FinTech clients expand their operations internationally. Key customers and partnerships In January 2020, the company partnered with the diversified FinTech infrastructure provider <a href="https://sp-edge.com/companies/85350">Plaid </a>, which enabled Bankable’s customers to use Plaid’s tech to connect to more than 15,000 banks in the US and Europe. Funding and financialsIn April 2019, <a href="https://sp-edge.com/companies/13061">Visa </a>invested an undisclosed sum in Bankable and entered a partnership with the startup. Through the partnership, Visa members obtained access to Bankable’s platform, while Bankable used VisaNet (Visa’s electronic global payments network) to extend its international payment and banking solutions.

Bankable

Platforms that allow FinTechs to integrate banking services such as opening and maintaining accounts, facilitating card payments, etc.


Platforms that enable FinTechs to integrate a range of payment-related services such as one-time payments, subscriptions, and receipt management for domestic and cross-border transactions.


Companies that enable organizations to embed anti-money laundering (AML), identity verification, and know-your-customer (KYC) solutions.


Platforms that allow FinTechs to integrate lending services,  by typically applying AI/ML technology to a spending analysis to analyze creditworthiness.

Companies providing APIs and integrations for FinTechs to access securities markets, facilitate transactions and clearing, and provide insights to help end-users manage their finances.

May specialize in promoting inclusiveness in financial services, primarily in the investment and lending spaces

AI/ML can improve the quality of their offerings, such as using AI/ML to reduce biases

Used for payment completions, accessing banking and transaction data, and providing financial insights, among others

Apex Clearing Corporation is a custody and clearing platform that provides clearing and custody services to some of the top online brokerages in the US. It is a subsidiary of Apex Fintech Solutions Inc., a fintech firm that powers innovation and digital wealth management solutions. Apex Clearing acts as an agent to carry customer accounts and execute trades on behalf of its clients, which include registered investment advisors and brokers. As of April 2022, Apex Clearing serviced over 200 broker-dealers and financial service firms, facilitating trading for millions of customer accounts. The company does not provide any advisory services directly to retail investors.
Apex Clearing uses its proprietary technology platform to provide real-time clearing and custody solutions to its clients, enabling them to offer a seamless trading experience to their customers. The company's services include executing and clearing trades, generating account statements, and providing other custodial services as mandated by regulatory standards. Apex Clearing does not disclose specific revenue or annual recurring revenue figures.
In April 2022, Apex Clearing announced a collaboration with US Bank to offer real-time payment solutions, allowing individual investors to move money instantly between their bank accounts and brokerage accounts. The partnership aimed to provide a more streamlined payment experience for brokerages using Apex's platform.
Key customers and partnerships
Apex Clearing provides clearing and custody services to a wide range of broker-dealers, investment advisors, and fintech firms. According to data from DTCC/NSCC and FINRA BrokerCheck, some of Apex Clearing's key clients include Ally Invest, Webull, SoFi Securities, Stash, Dough, Tastyworks, TradeZero, and M1 Finance, among others.
In addition to its partnership with US Bank for real-time payments, Apex Clearing has established relationships with various other firms to enhance its offerings. For instance, it offers cryptocurrency trading and custody services through its wholly-owned subsidiary, Apex Crypto LLC.

TransFICC is a London-based fintech company that provides eTrading technology and connectivity solutions for fixed income and derivatives markets.
TransFICC's core offering is its "One API" platform, which aims to resolve the issue of fragmentation in fixed income markets by providing banks and asset managers with a low-latency, scalable API. The platform enables connectivity to multiple electronic trading venues while supporting a variety of workflows across fixed income products.
TransFICC's services include automated trading workflows, IRS eTrading, and a consolidated tape pilot. The company has developed expertise in providing modern interface technology, resiliency, and business continuity planning to meet the requirements for a consolidated tape provider (CTP) in the fixed income space.
Key customers and partnerships
TransFICC has been running a bond consolidated tape pilot over the past year, hosted in AWS and utilizing production infrastructure and APIs. Multiple market participants, including banks, venues, and asset managers, have tested contributing data and consuming data output via API as part of this pilot.
The company has partnerships with various global banks, such as Citi and HSBC, which have provided feedback on TransFICC's technology and services.

TransFICC

Nitrogen (formerly known as Riskalyze) is a software-as-a-service (SaaS) company that provides a growth platform for wealth management firms. The platform helps advisors acquire new clients, increase client satisfaction, and retain existing clients. At its core, Nitrogen offers the Risk Number, a quantitative measure of an investor's risk tolerance based on a Nobel Prize-winning academic framework. This data enables advisors to align client portfolios with their risk profiles effectively.
Since its inception in 2011, Nitrogen has invested over USD 50 million in research and development, delivering more than 5 million Risk Numbers to clients. The platform integrates seamlessly with advisors' existing technology stack, including marketing tools, client relationship management (CRM) systems, and asset platforms. It offers lead generation capabilities, customizable marketing resources, proposal generation, light planning support, client engagement features, compliance tools, and risk analysis.
Nitrogen's business model revolves around advisors paying a subscription fee to access the platform's features. As of 2020, advisory firms leveraging Nitrogen experienced organic growth rates of 15% to 45%, significantly higher than the industry average of 3%. The company does not disclose specific revenue figures.

Nitrogen

Clear Markets is a leading company that specializes in developing and operating electronic marketplaces and trading technologies for complex fixed income and credit derivatives products. The company leverages its extensive expertise in building electronic trading systems to facilitate the transition from traditional voice-based trading to electronic platforms. Clear Markets' solutions cater to the needs of major financial institutions across global financial hubs, including Tokyo, London, New York, and Charlotte, North Carolina. The company's management team comprises respected pioneers in the development of the interest rate swap market, bringing a profound understanding of the legal and regulatory landscape governing swaps trading.

Clear Markets

Exabel is a data and analytics platform that enables investment professionals to integrate alternative data and advanced data science tools into their investment strategies. The company offers a software-as-a-service (SaaS) platform that allows discretionary managers to complement their fundamental analysis with more data-driven techniques.
Exabel's platform provides features such as hypothesis analysis, predictive modeling, and backtesting, empowering investors to uncover alpha-generating insights from alternative data sources. The platform seamlessly integrates over 50 pre-mapped alternative datasets with fundamental key performance indicators from providers like FactSet and Visible Alpha. It also offers unparalleled flexibility in mapping, forecast composition, and the ability to onboard proprietary data, delivering insights beyond simple backtests.
As of March 2023, a study found that 63% of portfolio managers and investment analysts rated their organization's use of alternative data as 'good', indicating the growing adoption of such data in investment strategies.
Key customers and partnerships
Exabel has established partnerships with several notable alternative data providers to enhance its offerings and reach a broader audience of financial buyers.
In May 2022, Exabel collaborated with People Data Labs, a leading provider of B2B and professional data, to deliver the People Data Labs Insights Platform. This platform provides hedge funds and asset managers with curated insights based on People Data Labs' extensive B2B dataset, leveraging Exabel's analytics capabilities.
Similarly, in June 2022, Exabel partnered with Datayes, an alternative data company offering China-focused datasets. The Datayes Insights Platform utilizes Exabel's platform to provide insights based on Datayes' recruitment data and other China-focused datasets.
Exabel has also joined forces with Eagle Alpha, a prominent player in the alternative data ecosystem, to address the end-to-end challenges of evaluating alternative data. By combining Exabel's analysis platform with Eagle Alpha's expertise, investment teams can efficiently evaluate and integrate alternative data into their investment processes.

Exabel

Earnest Analytics (formerly known as Earnest Research) is a data analytics firm that provides real-time insights and actionable data to institutional investors, companies, consultants, and government agencies. Their structured datasets offer clear signals and tools for in-depth analysis of consumer spending, retail pricing, consumer packaged goods (CPG), foot traffic, and healthcare claims data. Earnest utilizes machine learning algorithms along with expert analysts to deliver accurate investment signals, macroeconomic trends, consumer behavior analyses, and healthcare data.
Initially focused on providing revenue forecasts for public companies using credit card data, Earnest has expanded its offerings to include scanner data, web pricing data, and healthcare data. In November 2022, the company launched its proprietary web platform, Dash, enabling users to track insights across companies, subscribe to earnings surprise alerts, analyze trends, and segment data across various parameters.
Earnest Analytics generates revenue by providing structured data products and analytical tools to its clients through platforms like Snowflake, BigQuery, and S3. As of August 2023, the company increased the panel size of its Orion transaction dataset by 4x, representing credit, debit, and ACH spending data from a more geographically representative sample of US shoppers, with historical data dating back to 2016. In August 2023, Earnest also released its machine learning-based "Reported Metric Predictions by Earnest AI" solution, providing earnings predictions for 450 publicly traded US companies.
Key customers and partnerships
Earnest Analytics was named Snowflake's Retail and Consumer Goods Marketplace Partner of the Year in 2023, recognized for enabling joint customers to understand the consumer economy with real-time data listed on Snowflake Marketplace. The company's clients include leading hedge funds, asset managers, Fortune 500 companies, and industry experts from various sectors such as financial services, consumer goods, and healthcare. Notable clients highlighted in the sources include Rabobank, Hungryroot, and Emory University's Dan McCarthy, who have leveraged Earnest's data for competitive benchmarking, customer behavior analysis, and revenue forecasting.

Earnest Analytics

Platforms that help financial market participants collect, manage, and use traditional and alternative data, derive market insights from news, and provide trade signals to make informed decisions.

Platforms that help institutions such as asset managers, investment banks, and hedge funds to develop platforms to trade and operate brokerage services for various financial assets and instruments such as stocks, fixed income securities, derivatives, commodities, and foreign currencies.

Companies that use blockchain technology to share and synchronize data and improve efficiency across the trading workflow and post-trade actions such as clearing and settlement.

Platforms that help companies meet anti-money laundering requirements and provide identity verification tools such as KYC checks.

These platforms provide services such as risk detection, regulatory compliance, risk management, risk intelligence, collateral management, internal processes management, and strengthening of internal controls.

Uses blockchain to automate certain workflows between institutions and capital market participants

Uses GenAI to automate analysis, optimize portfolios, predict market trends, and enhance risk management

Uses AI/ML to process market data and information to derive valuable and timely insights

Apex Clearing

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