Tink secured $108.5 million following strategic acquisitions and growing demand for its API

  • Tink has secured $108.5 million following strategic acquisitions and growing demand for its API.
  • And it should now launch new data-driven features to stand out in the European open banking market.
  • Insider Intelligence publishes hundreds of insights, charts, and forecasts on the Fintech industry with the Fintech Briefing. You can learn more about subscribing here.

The Sweden-based open banking provider has raised €85 million ($108.5 million) at a €680 million ($867.9 million) valuation, up from €415 million ($529.7 million) in January, per TechCrunch.

Quarterly global fintech funding

Open banking providers are set to increasingly clash in client outreach as they expand across Europe.
Insider Intelligence

Launched in 2012, Tink’s APl allows more than 3,400 banks across Europe to share customers’ payment account data—if users give consent—with third parties including fintechs to access and develop new products. Tink can also help banks and fintechs transform customer payment account data into tangible insights and access a personal finance management (PFM) toolkit. It will use the funding to boost hiring and expand API coverage to more banks and fintechs.

Tink has grown exponentially on the back of rising consumer demand for fintech solutions and its recent strategic acquisitions.

  • The pandemic has encouraged bank customers to share their financial data to access fintech products and better deal with their finances. To manage their pandemic-driven financial stress, consumers are flocking to fintech solutions such as automated budgeting, saving, and investment tools. PFM apps like Snoop or Plum need to connect to user bank accounts in order to offer these tools—which APIs like Tink’s facilitate. Banks are also looking to improve their fintech offerings and are partnering with Tink to leverage its data insights and PFM toolkit, as seen with BNP Paribas. The open banking provider now processes 1 million transactions every month, which generate annual recurring revenues of €30 million ($38.3 million).
  • Tink has also purchased other providers to rapidly increase its available API connections and enhance its value proposition. The open banking provider made three strategic purchases this year. With its takeover of credit analytics Instantor and B2B account aggregator Eurobits, Tink instantly added links to hundreds of banks and fintechs, and expanded from 13 to 17 markets. It also purchased OpenWrks, which handles over one-third of the UK’s active user base for account aggregation for clients including big fintech names Xero, Liberis Finance, and Snoop—boosting Tink’s coverage at a time when open banking consumer usage is booming in the UK.

Open banking providers are set to increasingly clash in client outreach as they expand across Europe, and Tink will need to add new features beyond data-driven features to stand out. Yolt Technology Services announced in May that its API now connects to 80% of bank accounts in Italy, France, and Spain, while Yapily plans to expand from Germany to France and Austria.

Both also offer PFM toolkits to banks and fintechs. Meanwhile, Latvia-based Nordigen just upped the ante by making its API available for free and only charging for its additional data insights services—Tink costs €0.30 ($0.34) per aggregation alone.

In response, Tink may need to reduce its price and add more data-driven features to its toolkit for banks that analyze data from loans, investments, and pensions accounts—which would differentiate it from competitors. This could be attractive to banks looking to boost customer satisfaction by providing a more holistic view of all their finances.

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