Swedish open banking startup Tink is set to acquire German firm FinTecSystems for an undisclosed amount.
Founded in 2014, FinTecSystems markets an open banking infrastructure that powers over 150 banks and FinTech’s across the DACH region (Germany, Switzerland and Austria). The company specialises in data analytics, account aggregation, open banking payments and digital account checks and claims three in every four online credit decisions in Germany involve FinTecSystems.
According to Tink, the acquisition will strengthen FinTecSystems’ already leading market position, with Tink helping the German firm boost its high growth in the DACH region.
The Swedish company added the combination of Tink and FinTecSystems will offer both local and international customers in DACH ‘the most complete solution’ when partnering for open banking technology.
The acquisition of FinTecSystems is conditional upon approval from the national competent authorities. Following the acquisition, FinTecSystems will become a part of Tink.
Tink CEO and co-founder Daniel Kjellén said, “Germany is a key market for Tink, and we are excited to have acquired an innovative leader with a strong reputation for the quality of its bank connectivity and payments services.
“We have followed FinTecSystems for many years and are impressed by what they have achieved. Through this acquisition, we are taking a big step into the DACH region, and we look forward to supporting the FinTecSystems’ team to further accelerate their growth.”
FinTecSystems co-founder and managing director Stefan Krautkrämer added, “We are proud to have built the leading open banking platform in DACH, serving some of the biggest and most innovative financial institutions and FinTechs in the region.
“Now we are equally proud that FinTecSystems will become part of Europe’s leading open banking platform. By joining forces with Tink, there is a unique opportunity to further strengthen FinTecSystems’ position as the open banking leader in the region, and better support our clients to expand across Europe.”
Tink’s platform is connected to over 3,000 banks and reaches over 250 million bank customers across Europe. The company processes over one million transactions per month, serves 18 markets worldwide and is now used by over 10,000 developers.
Tink’s technology is already used by some of the world’s leading banks and FinTechs such as PayPal, ABN AMRO, BNP Paribas, NatWest and American Express.
During 2021, Tink has committed to bringing in 200 new employees to the almost 400 it currently has today. The company is also looking to double its market presence for payments by expanding its payment technology to 10 European countries.
Tink recently teamed up with American Express to bolster its onboarding process for new card members.
The Swedish firm claimed the integration of its open banking technology into the American Express application and risk analysis process will allow potential card members to connect their bank accounts seamlessly and verify their identity, account information and income instantly with American Express.
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