Peach Finance, a SaaS-based loan servicing platform, has raised $20m in a Series A funding round led by Canapi Ventures.

The round also saw participation from returning and new investors, SciFi VC, Caffeinated Capital, Nyca Partners and Moore Specialty Credit.

The investment will be used by Peach Finance to expand in loan management and servicing market by launching new credit offerings, growth initiatives and hiring.

Peach Finance caters to financial institutions like banks and credit unions through its loan management, servicing, and Compliance Guard product offerings.

The SaaS platform leverages application programming interface (API) to offer bespoke credit solutions and claims to offer help in streamlining operations and managing regulatory risks.

Peach Finance CEO Eddie Oistacher said: “For both traditional lenders and modern fintechs needing to deliver efficiency and an exceptional customer experience, legacy systems simply aren’t cutting it – and Peach is uniquely able to meet this tremendous, growing market need with our all-in-one SaaS platform.”

Canapi Ventures partner Jeffrey Reitman said: “As the race to acquire digital banking customers heats up, we believe both banks and fintechs will look to significantly increase their customer lifetime values, resulting in an explosion of newly created, digitally originated lending products.”

US-based Peach Finance was launched in the fourth quarter of 2020 and counts Empower, Jetty and ClearGage among its clients.

Empower CEO Warren Hogarth said: “As a mobile-first neobank, we were looking for a trusted partner with modern technology that could help us launch innovative lending products quickly – and that’s where Peach came in.”