Miami Fintech Trendmakers: Zūm Rails Empowers Businesses to Become Their Own Banks

The landscape of financial services is undergoing a profound transformation, as businesses across various sectors increasingly seek to embed banking-like capabilities directly into their operations. This burgeoning trend, known as embedded finance and Banking as a Service (BaaS), promises to revolutionize how consumers and companies interact with financial products, moving beyond traditional banking institutions. At the forefront of this shift is Zūm Rails, a rapidly growing fintech company co-founded by Miles Schwartz, whose innovative “bank in a box” technology is empowering companies to offer sophisticated financial services with unprecedented ease.

From its new U.S. headquarters in Miami, Zūm Rails, under the leadership of CEO Miles Schwartz, is enabling a future where businesses can seamlessly issue cards, manage payments, and perform a host of financial transactions that were once the exclusive domain of banks. The company’s exponential growth, marked by a near tripling of revenue and a workforce expansion from six to approximately 75 employees, with about 20 based in the U.S., underscores the massive demand for such solutions.

The Rise of Embedded Finance: A New Era of Financial Interaction

Embedded finance refers to the integration of financial services, such as payments, lending, and insurance, directly into non-financial applications and platforms. This allows businesses to offer banking features without requiring customers to engage with traditional banks, creating a more seamless and intuitive user experience. For instance, ride-hailing apps can provide instant driver payouts, e-commerce platforms can offer Buy Now, Pay Later (BNPL) options, and SaaS providers can integrate payment solutions for effortless transactions.

This shift is not merely about convenience; it’s about fundamentally reshaping how financial products are accessed and distributed. Companies like Starbucks, which holds billions in customer funds through its gift cards and app balances, demonstrate the powerful potential of non-financial entities operating with bank-like scale. The global Banking as a Service market, a key enabler of embedded finance, was valued at an estimated $18.6 billion to $26.13 billion in 2024/2025 and is projected to surge to $60 billion to $97.99 billion by 2030-2034, with a compound annual growth rate (CAGR) of 15-20%.

Driving this growth are factors such as the increasing demand for integrated financial services, the rapid adoption of fintech solutions, the digital transformation of traditional banks, and the widespread use of Application Programming Interfaces (APIs) and cloud technology.

Zūm Rails: The “Bank in a Box” Innovators

Zūm Rails, founded in 2019 by Miles Schwartz and Marc Milewski, positioned itself early to capitalize on this burgeoning market. Their core offering is an omni-rail payment solution that simplifies payment operations for businesses. However, the company’s vision extends far beyond basic money movement. Zūm Rails aims to provide a comprehensive “bank in a box” solution, which Schwartz also refers to as a “Financial Operating System.”

This integrated platform enables clients to issue their own branded prepaid or secured cards, both physical and digital. It combines various functionalities historically managed by disparate providers into a single gateway, including payment processing, KYC (Know Your Customer) and AML (Anti-Money Laundering) tools, real-time money movement, risk management, and simplified reconciliation. By integrating with major financial partners like Visa, Mastercard, and Fiserv, Zūm Rails allows businesses to power payments and banking services directly through their customer interfaces.

Miles Schwartz emphasizes that while moving money instantly is crucial, the true value lies in layering software, compliance, and value-added services on top of it. This comprehensive approach eliminates the need for businesses to stitch together multiple vendors, a complex and time-consuming process.

Rapid Expansion and Strategic Miami Presence

Zūm Rails’ growth trajectory has been remarkable. The company secured a $10.5 million Series A funding round led by Arthur Ventures in February 2024, which is being used to fuel its U.S. expansion and develop new Banking as a Service capabilities. The startup achieved $10 million in annual recurring revenue (ARR) in 2023 and saw an additional $5 million ARR growth in the six months following its Series A funding. It currently serves nearly 500 clients, including prominent names like Questrade, Fairstone, Shakepay, and Desjardins.

A pivotal strategic move for Zūm Rails has been the permanent relocation of CEO Miles Schwartz to Miami, establishing a new U.S. headquarters in the city. This decision reflects Miami’s emergence as a significant hub for technology and finance corporations, offering access to leading fintech talent and resources. The U.S. market has proven particularly fertile, with Zūm Rails reporting a 75% increase in its U.S. business over the past year and anticipating that at least 50% of its overall revenue will originate stateside within the next 18 months.

Schwartz’s personal philosophy mirrors the company’s rapid growth. He acknowledges that continuous personal development is essential to keep pace with the company’s swift expansion, often feeling “underqualified for every stage” and striving to “get qualified fast.” This dynamic approach is driving Zūm Rails to stay ahead of market demands, anticipating customer needs two years in advance.

Outlook: Empowering the Future of Business Finance

While the journey to a fully embedded financial ecosystem faces challenges, including regulatory complexities around open banking, Zūm Rails aims to outpace these hurdles by providing robust, all-in-one solutions. By enabling businesses to offer diverse financial products directly, Zūm Rails is not only unlocking new revenue streams for its clients but also enhancing customer engagement and loyalty.

The broader trend of businesses acting more like banks is a testament to the power of fintech innovations. Companies are realizing that by integrating financial services, they can deepen customer relationships and create more holistic digital experiences. Zūm Rails, as one of the key trendmakers from Miami, is providing the sophisticated technology and comprehensive platform needed to navigate this evolving financial frontier, empowering a new generation of businesses to truly own their financial interactions.