Tink acquired open banking fintech Openwrks' aggregation platform to establish its position in the UK
Openwrks' offerings include providing financial institutions (FIs) with open banking applications to help users manage their money, repay funds, and lending. This marks Tink's third acquisition in 2020; it already purchased Instantor and Eurobits Technologies.
With the acquisition, Tink is strengthening its position in the UK while also building out its product suite. Openwrks was the first third party to be authorized and listed in the UK's Open Banking directors, and handles over one-third of the UK's active user base for account aggregation.
As part of the acquisition, Openwrks will bring its fintech customers to the new combined entity, including Xero, Liberis Finance, and Snoop—boosting Tink's customer base in the country. Additionally, Tink will open access to UK business account data later this year as part of a strategic partnership with Openwrks. With this service, clients will be able to make data-driven decisions, based on real-time verified business information—hence broadening Tink's offering to create a better value proposition for clients.
Open banking continues to grow in the UK, and while there are hurdles to fintech collaborations, Tink's experience with incumbents gives it a good position in the market. More UK FIs have increased their spend on open banking initiatives than any other European nation in 2020, compared with 2019. Additionally, 89% of banks and FIs identify collaboration with fintechs as key to improving their services, while 86% of banks are developing APIs to enable open banking capabilities within the next year, according to a recent survey from Finasta.
And while banks' legacy systems can be an issue when developing new solutions that need API integrations, Tink has a wealth of experience in working with incumbents, including ABN Amro, Nordea, and BNP Paribas, which could help boost FIs' confidence in future partnerships.
Source: Business Insider