Sila’s Playbook: Breaking Down Complex Financial Infrastructure for Early Adopters

Sila’s Playbook: Breaking Down Complex Financial Infrastructure for Early Adopters

Financial infrastructure is notoriously complex – a reality Shamir Karkal learned firsthand while building Simple in 2009. In a recent episode of Category Visionaries, he shared how Sila turned these complications into opportunities by making banking infrastructure accessible to a new generation of builders.

Understanding the Market Need

“Our mission is to make it easy for everybody to innovate and program with money and financial networks,” Shamir explains. This mission emerged from a clear market gap: while demand for financial innovation was growing, the tools to build remained inaccessible to most developers.

The scale of existing systems hints at the opportunity. “The card networks move about $9 trillion a year in the US. The ACH system moves about $73 trillion a year. And then Fedwire moves about three to $4 trillion a day,” Shamir notes. Yet these massive systems remained largely inaccessible to innovators.

Breaking Down Complexity

Sila’s approach focuses on making complex banking functions accessible through familiar developer tools. “Our core product is a REST/HTTP API platform that enables our customers to build financial applications and offers tools like KYC and KYB APIs, digital wallets, virtual bank accounts, ACH payments, and buyer and card payment suit,” Shamir explains.

This API-first approach allows developers to focus on their unique value proposition rather than wrestling with banking infrastructure. As Shamir puts it, “It allows our customers to onboard their end users, verify their identity, pull in money, hold it, transform it, transfer it, program with it, and then pay out somebody else at the end of some funds flow.”

Starting with Core Use Cases

Rather than trying to solve every problem at once, Sila focused on essential functions first. “You just have to prioritize,” Shamir emphasizes, describing how they chose which features to build. This selective approach helped early adopters get started quickly while allowing Sila to expand capabilities over time.

The strategy is working. “We have close to 100 customers in total, more than 50 of whom are live,” Shamir shares. “We’ve seen like about five X growth in total transactions this year… and we do anywhere from ten to 25% transaction growth month on month right now.”

Handling Edge Cases

A crucial part of Sila’s success has been their attention to edge cases. “Everything about payments, especially, it’s not about the 99 or 99.9% of payments that work fine. It’s all about that .1% that have a problem,” Shamir notes. This focus on reliability has helped build trust with early adopters.

Building for the Long Term

For founders building complex infrastructure products, Sila’s approach offers valuable lessons. Success isn’t just about simplifying technology – it’s about making it accessible in ways that solve real business problems. As Shamir puts it, “Startups are not like an overnight success. It takes years, sometimes decades of building before you do become that overnight success and everybody hears of you. So it is 99% perseverance.”

This patient approach to simplifying financial infrastructure is paying off. While there are now “about 5000 fintech startups in the US,” Sila’s focus on making complex systems accessible through familiar developer tools has helped them stand out in an increasingly crowded market.