Over the next decade, we will see more changes in the open banking industry not only due to technological advancement but also a confluence of inter-related structural factors.
According to the report published by Allied Market Research, the global open banking market is expected to reach $43.15 billion by 2026, growing at a CAGR of 24.4%.
The report also says that the rise in adoption of new applications and services in the banking sector, supportive government regulations, and enhanced customer engagement with open banking APIs drive the growth of the global open banking market.
Raised £78 million funding
In this regard, Tink, a Stockholm-based open banking platform raised €85 million (approx £78 million) during an investment round extension, bringing the total amount raised to €175 million (approx £160 million) this year. The investment round extension was led by Paris-based private equity firm, Eurazeo and VC company, Dawn Capital.
The funding will fuel Tink’s continued expansion and support the further development of its technology with a particular focus on payments. This puts an £607 million valuation on the fintech firm.
Enables the future of financial services
Founded by Daniel Kjellén, and Fredrik Hedberg in 2012, Tink allows customers to access aggregated financial data, initiate payments, enrich transactions, and build personal finance management tools, through one API.
Made three acquisitions
In 2020, the company made three major acquisitions, Eurobits in Spain, Instantor in Sweden, and Openwrks in the UK. These acquisitions enabled Tink to further strengthen its positioning in Spain and in the UK and to complement Tink’s product offering.
The Swedish company’s technology and connectivity are used by various world-leading banks and fintechs, including PayPal, NatWest, ABN AMRO, BNP Paribas, Nordea, and SEB. Tink’s open banking platform is also used by more than 8,000 developers. The Swedish fintech company connects with more than 3,400 banks reaching over 250 million banking customers across Europe.
Tink currently operates in Sweden, the UK, France, Spain, Germany, Italy, Portugal, Denmark, Finland, Norway, Belgium, Austria, and the Netherlands. The company has more than 350 employees and is currently serving its clients out of 13 local offices across Europe.
Aims to enter 10 markets in 2021
Notably, The company processes close to 1 million payment transactions per month in 5 markets, for clients including the payment fintech Lydia, used by more than 5 million customers in France. Tink aims to make its payment initiation services live in 10 markets in 2021.
Yann du Rusquec, Partner at Eurazeo Growth, states: “The open banking movement continues to pick up the pace, with 2021 showing every sign that it will bring increased collaboration between fintechs and large enterprises, who want to take digitally-enabled services to their customers with a tried and trusted partner. Since its inception eight years ago, Tink has proven itself to be the leading open banking platform in Europe, and our investment underlines the confidence we and the industry have in Tink and open banking. We look forward to supporting them on their continued journey.”
Daniel Kjelleìn, co-founder and CEO of Tink, comments: “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 and the partnership with Eurazeo Growth, Dawn Capital, and our existing investors 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.”
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