Stitch (@StitchHQ) / X

Stitch

1,991 posts

Stitch

@StitchHQ

The simplest way to build financial products

Joined November 2023

Pinned
Stitch
@StitchHQ
May 14
We just announced our $25M Series A, led by @a16z, with participation from @ArborVentures1, @COTUVentures, @RaedVC, and @SVC_SA. Financial infrastructure is broken. Institutions are slow to launch, locked into fragmented legacy systems, and falling behind on AI because the
Mohamed Oueida
@MoOueida
May 14
Stitch raised a $25M Series A, led by @a16z, with continued backing from Arbor, COTU, Raed, and SVC. Grateful to our customers, who trust us with the systems that run their business. Financial institutions still run on infrastructure that should have been left behind 20 years
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30K
Stitch
@StitchHQ
32m
A customer's stored value balance is a liability backed by money sitting in a pooled account somewhere. Plenty of platforms can update that balance in real time but cannot prove the float matches it on any given day.
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Stitch
@StitchHQ
3h
Bank reconciliation is supposed to confirm what you already know happened. For most finance teams it is how they find out what actually happened, three weeks too late.
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Stitch
@StitchHQ
5h
Everyone treats the bureau pull as the moment of truth in a lending decision. The data inside it is often weeks old, describing a borrower who has already moved on.
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Stitch
@StitchHQ
7h
People treat the balance in a stored value account like cash sitting in a bank. Very few of the systems holding that money are reconciled to the standard a bank would actually require.
229
Stitch
@StitchHQ
10h
A stored value account is just a customer's money sitting on your balance sheet under a different name. Plenty of platforms have grown the float faster than they have grown the controls around it.
245
Stitch
@StitchHQ
13h
Every stored value balance is a promise that the money is sitting somewhere safe. Remarkably few providers can reconcile the sum of those balances against the float account in real time.
259
Stitch
@StitchHQ
18h
How many institutions running savings products can tell you how interest accrues on a balance that changed three times in one day, without pulling a report first?
229
Stitch
@StitchHQ
21h
The account statement is the only thing a bank produces specifically for a human to read, and it is remarkable how often it does not reconcile cleanly to the bank's own ledger.
251
Stitch
@StitchHQ
Jun 21
Every stored value account is a promise to return someone's money on demand. Remarkably few operators can prove, at any given second, that the pooled balance equals the sum of what they actually owe.
106
Stitch
@StitchHQ
Jun 21
A real-time ledger is easy to claim and hard to prove. The honest test is whether the balance on the customer's screen matches the balance in the database the moment a payment lands, and most of the time it does not.
101
Stitch
@StitchHQ
Jun 21
Instant payments moved settlement down to seconds. The disputes, the refunds, and the reconciliation are all still running on yesterday's timeline.
115
Stitch
@StitchHQ
Jun 21
A real-time ledger is easy to demo and very hard to run. The moment volume spikes, most of them quietly fall back to reconciling after the fact.
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