Dec 14, 2020

Tink closes 2020 with €175m in new investment

Tink
Open banking
Brexit
Fintech
William Girling
2 min
Tink closes 2020 with €175m in new investment
Despite the substantial difficulties of 2020, Swedish fintech Tink has managed to generate €175m (US$213m) over the course of the year...

Despite the substantial difficulties of 2020, Swedish fintech Tink has managed to generate €175m (US$213m) over the course of the year.

Having secured €90m ($109m) in a January investment round, the company bookended with a near-equivalent €85m ($103m) on 11 December. 

Tink, which offers a pioneering and data driven open banking platform, is currently connected to over 3,400 banks and reaches more than 250 million customers across Europe.

Founded in 2012, the company’s integrated API based approach has been met with widespread acclaim for its ability to enhance the customer experience, streamline payments and increase financial transparency.

A great growth year

With its technology already adopted by banking and payments sector heavyweights like PayPal, NatWest and BNP Paribas, it is, perhaps, unsurprising that Tink has managed to garner and maintain investor interest.

New investor Eurazeo Growth and software VC Dawn Capital (current investor) jointly led the latest round. Using the newly secured funds, Daniel Kjellén, Co-Founder and CEO of Tink, stated that the company will continue its mission of expansion (it is currently available in 13 European locations):

“2020 has seen payments powered by open banking take off, and in 2021 we expect to see this scale – most prominently in the UK, followed by Europe.

“This funding extension will further facilitate the development of our payment initiation services across Europe, while continuing to deliver new data-products built on open banking technology to our customers.”

UK finance: At a crossroads

Kjellén’s comments regarding ‘prominent’ open banking uptake in the UK are interesting to note, particularly in light of the news that Brexit negotiations are continuing, despite the previous deadline of Sunday 13 December passing without agreement.

Open banking has inherent benefits that could prove invaluable to reasserting financial strength after the UK formally ends its transitioned exit from the EU. Not least of these are a reduction in ‘red tape’ for digital services, cash flow automation and faster adjudication times for loans.

Other commentators have already noted the important role that payment solutions could have in the post-Brexit dynamic. With the discernable division between those who see splitting from the EU as an opportunity and a hindrance still present, Tink’s role as a pan-European banking solution could become more valuable than ever. 

Pictured: Co-founders Daniel Kjellén (CEO) [left] and Fredrik Hedberg (CTO) [right]

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Jun 22, 2021

TrueLayer launches new verification API

TrueLayer
Fintech
API
openbanking
3 min
TrueLayer says the new Open Banking solution streamlines the onboarding process and simplifies payment processes

TrueLayer, the leading, London-based open banking solution fintech, has announced the launch of its new Open Banking API verification solution. 

According to reports, the technology combines open banking with machine learning (ML) to make the onboarding process seamless and fast.

Fast processing in Open Banking

Results show its success rate is currently 20% higher than credit bureaus because it generates reports in seconds rather than the traditional manual, bank statement checks that can take days to complete. 

TrueLayer also says the technology simplifies the payment setup and transactions by pre-verifying customer’s details. 

Another advantage is that existing providers have access to raw data that requires businesses to build and maintain their own logic to verify that the customer’s name matches their name on file at the bank.

The verification logic sits on top of open banking rails and matches the name given via the onboarding, along with the name held at the bank. It, therefore, offers a single feed that provides an immediate and highly accurate response regarding whether their user’s account has been verified.

Open Banking in the UK

Open Banking has seen a surge in popularity since March 2020. Data shows that the technology is being used 12-fold more than it was two years ago.  Banks in the UK are now handling more open banking payments volume in a single month than the amounts measured in the whole of 2019.

TrueLayer says many of its clients are using the Verification API, including Authologic, a Y Combinator-backed provider of identity verification solutions.

Ossama Soliman, Chief Product Officer at TrueLayer, said the verification breakthrough makes a huge difference to both businesses and customers because verification is the first step to onboarding a new user and yet it can often take days to verify an account owner using traditional methods. 

He explained, “Their security is questionable, they’re prone to errors and they take forever. It doesn’t need to be that way. With the verification API, we’ve built on top of open banking to create a faster, more secure, and more accurate approach to verifying a user’s account. It serves businesses across multiple industries, including financial services, PSPs, wealth management and trading, marketplaces, property, and iGaming.”

Speaking about the new technology, Jarek Sygitowicz, co-founder of Authologic explained, “Whether you are a fintech, a marketplace, or an ecommerce platform you want to deliver the best possible onboarding experience. 

He added; “We are aggregating different identity verification methods and we are big supporters of using open banking thanks to its ability to make the entire process more intuitive.”

The TrueLayer verification API delivers: 

• A faster onboarding process, cutting time from three days to three clicks.

• The API coverage spans all major banks, resulting in a 22.5% higher success rate compared to other credit check methods.

• Prevents fraud through its embedded strong customer authentication (SCA) within the bank verification process.

• Offers a better user experience for customers using biometric technology to confirm identity and ownership.

• Lowers payment failures through its pre-verified account details.

• Lowers burden on compliance teams through automated verification via a single API call.

• Lowers maintenance issues because engineers can focus on solving core business problems, rather than building and maintaining name-check logic.

Image credit: TrueLayer offices from TrueLayer

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