3 emerging UK FinTech companies in the open banking ecosystem

By Megha Bhattacharya

Since the introduction of the EU’s Second Payment Services Directive (PSD2) in January 2018, open banking has revolutionised the way millions of people manage their finances and use their data. The ability to access all your accounts and integrate non-banking financial services too has proved increasingly popular over the last few years, with the likes of FinTech giants Monzo, Revolut, and Starling all offering some form of the technology.

Here are 3 significant FinTech companies in the Open Banking space –

1. Yapily

Established in 2017 in the UK, Yapily offers a proprietary open API that enables companies to access the financial information needed to meet rising customer expectations in banking, lending, payments, accounting, and money management. Its clients include Intuit QuickBooks, IBM, and GoCardless. It also collaborates with technical design authorities and regulators, such as Open Banking Implementation Entity in the UK and Berlin Group.

FinTech Yapily has announced plans to set up in Vilnius, the company’s third European office. The company stated that it will hire up to 30 people in Vilnius in the coming months. It is currently recruiting for compliance, engineering, product, and operations roles. Its Lithuanian entity received the regulatory license in December 2020, prior to the UK leaving the EU, and is now focused on its expansion plans.

European neobroker BUX recently extended its partnership with Yapily to France and Austria. The new collaboration will enable French and Austrian BUX Zero users, along with German users to fund their accounts and build an investment portfolio.

2. TrueLayer

Founded in 2016 in London, FinTech TrueLayer builds universal APIs that allow companies to access their customers’ bank accounts to share financial data, make payments and validate their identity. It aims to enable companies to capitalize on new Open Banking initiatives in the UK, and the PSD2 rules by providing access to banking infrastructure.

sync., the digital smart open banking app, has extended its collaboration with financial infrastructure provider TrueLayer to provide services to Germany and Lithuania, expanding its European coverage. By using TrueLayer’s Data API, users can already consolidate Spanish, French, and Irish bank accounts in one place, while the expansion means German and Lithuanian banks will be included as well.

TrueLayer is a technology company providing secure, global access to financial infrastructure and is available in the UK, Europe and Australia.

3. Railsbank

Railsbank is a global open banking and RegTech platform based in London. The API-based platform enables developers and product managers to build, launch and scale a financial services business. It also provides financial services operations and regulations for customers.

The FinTech recently announced that it has secured $37 million in a funding round co-led by MiddleGame Ventures and Ventura Capital. The round also saw the participation of Anthos Capital, Global Brain, Clocktower Technology Ventures, Moneta VC, Mitsui Fudosan, and Firestartr. The new investment is expected to enable the company to continue the expansion of its global footprint, strengthen core product proposition, launch Credit Cards as a Service, etc.

Railsbank recently announced that it is all set to acquire Wirecard Card Solutions card technology, client relationships, and specific employees in the UK, receiving the FCA’s support. The deal will accelerate Railsbank’s expansion across the UK and Europe, thus strengthening its position as a BaaS platform in Europe.

READ MORE: Open Banking Roadmap for Mid-sized banks in Europe by IBS Intelligence