Tink: the open banking platform that raised US$99.7m
The open banking platform Tink has just announced that it has closed a US$99.7mn investment round as it gears up to expand across Europe. FinTech finds out more.
It was announced today that the open banking platform, Tink, has raised US$99.7mn (€90mn) in its latest fundraising round. This comes 11 months after the fintech’s last funding round, which raised US$62mn dollars.The investment will further support the banks expansion across Europe.
Daniel Kjellén, co-founder and CEO, Tink, said: “The investment round will facilitate our ambitious growth plans over the next year and beyond. During 2020 we are committed to building out our platform with more bank connections and, on top of that, expanding our product offering.”
The investment round was led by two new investors: London-based B2B software venture capital firm, Dawn Capital, and San Francisco-based investment management firm, HMI Capital. These companies join existing partners: Heartcore Capital, ABN AMRO Ventures and BNP Paribas’ Opera Tech Ventures.
Kjellén continued: “Our aim is to become the preferred pan-European provider of digital banking services and to offer the technology needed for banks, fintechs and startups to leverage the opportunities of open banking and enable them to successfully develop financial services of the future. Two key factors for succeeding with that are that we strengthen our European coverage and continue to deliver new data-products on top of this infrastructure to our customers.”
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Josh Bell, General Partner, Dawn Capital, added: “As the world of banking undergoes a fundamental shift, from analogue to digital and from closed to open, banks and financial services require a new set of technical foundations on which to build a winning product strategy for the coming decades. Tink has become a trusted partner amidst growing demand from Europe's leading banks and fintechs seeking to build better and more creative financial products and services. Our investment underlines the confidence that the industry has in Tink's category-leading technology, and we look forward to supporting them on their continued journey.”
What is Tink?
Tink is a Swedish fintech startup that allows customers to utilise their data for a more comprehensive view of their spending. Founded in Stockholm in 2012 by Daniel Kjellén (CEO) and Fredrik Hedberg (CTO), the bank allows customers to access aggregated financial data through one API. Today Tink has over 250 million customers across 14 markets. It is currently live in the UK, Germany, Spain, Italy, Portugal, Sweden, Denmark, Finland, Norway, Belgium, Austria and the Netherlands. Tink powers a number of major fintechs such as Klarna, Paypal, NatWest, ABN AMRO, BNP Paribas Fortis, Nordea and SEB.
[Image: Co-founders Daniel Kjellén (CEO) and Fredrik Hedberg (CTO), Tink]
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Mobile money app Monese partners with Veriff
According to reports, the partnership was motivated by Monese recognising the need for enhanced security for its digital banking services. The collaboration will provide an additional layer of safety and security for the mobile money app.
Monese, which was launched in 2015 by Estonian entrepreneur Norris Koppel, was the UK’s first mobile app alternative to incumbent banks, and currently offers services for mobile money accounts across 31 countries.
Veriff is an Estonia-based technology company focused on identity verification that has seen rapid growth over the past 18 months. In April, it secured US$69mn in a Series B funding round led by investment firms IVP and Accel.
Cybersecurity and fintech
The spate of data breaches in recent weeks is driving companies to seek cutting-edge technologies to fortify their platforms against hackers who use malware and ransomware to infiltrate and steal customer data. Identification fraud is also on the rise.
The partnership with Veriff will see enhanced security solutions integrated into the onboarding and authentication processes of Monese’s platform, to verify the identities of Monese users and help the company meet KYC (know your client) requirements.
The integration will also speed up and improve the accuracy of user screening, thus helping to prevent identity fraud.
Monese customer base
The majority of the banking fintech’s customers work in the gig economy, are self-employed, or living in a different European country to that in which they were born, and are not therefore well served by mainstream banks. Monese has filled a gap in the market by providing access to flexible financial services and support.
Customers can deposit salaries, set up Direct Debits or standing orders, and use their account as a savings platform. Monese also allows users to link their PayPal and Avios accounts to their Monese accounts and pay via Apple Pay and Google Pay.
Competative market for fintech
Speaking about the new partnership, Janer Gorohhov, co-founder and chief product officer of Veriff explained, “This partnership with Monese strengthens our position in the UK’s highly competitive digital banking market. We’re excited to aid Monese in its mission to provide access to fair, flexible financial services and support while minimising friction as we simultaneously expand our organisation’s footprint in the UK via our customer base and team.”
Atul Choudrie, Chief Commercial Officer at Monese, said the move would improve customer services and increase protection against fraudulent behaviors. “At Monese, we help people build sustained financial resilience, by providing access to fair, flexible financial services and support.”
He added, “Working in partnership with Veriff, we are unlocking new possibilities in delivering a safe and efficient onboarding experience that will help us reach more customers.”