Top 10 FinTech deals of November 2020 (UK & Europe)

By Megha Bhattacharya

The COVID-19 pandemic has accelerated the process of digitalisation for the financial services industry. Amidst the unprecedented market volatility, the industry’s appetite for digital technology has been on the rise. This is continuously being illustrated by some significant deals undertaken by FinTech companies.

Check out the top FinTech deals that took place in November 2020 (UK & Europe) :

1. Credit Kudos and Koodoo

UK-based digital mortgage platform Koodoo selected credit reference agency Credit Kudos as its Open Banking provider. The partnership is expected to facilitate the provision of a better end-to-end digital mortgage journey. Koodoo will utilise Credit Kudos’ platform for implementing Open Banking technology for ensuring a better app experience.

Credit Kudos stated that its analysis and insights will offer lenders with an up-to-date picture of a borrower’s financial health and help lenders to reduce application times while providing a better customer experience. Leveraging Open Banking technology is also expected to simplify the entire mortgage application process.

2. SumUp and Mastercard

SumUp and Mastercard teamed up to announce a new payment service customised for Ford commercial vehicles in Germany, Italy, France, Spain and the United Kingdom. The new solution will allow small business owners with commercial vehicles to accept card payments directly from their vehicles. The companies stated that the solution provides entrepreneurs with the ability to accept payments from their customers immediately, rather than waiting for an invoice to be paid at a later date.

The payment solution will offer small businesses with more choice with the enablement of card payments including contactless, as opposed to cash only. Customers have the option to pay by debit or credit card – either contactless or by chip and pin.

3. Backbase and Advanzia Bank

European digital bank Advanzia recently announced a collaboration with digital banking tech provider Backbase in a bid to boost digital transformation and optimise the customer experience. The companies stated that the partnership will include the implementation of Backbase-as-a-Service, which allows banks to develop and release new digital services.

The collaboration will enable Advanzia to implement a customer-centric, digital UX platform that covers the complete lifecycle of cardholders with the integration of all touchpoints. Advanzia also aims to include the harmonisation of all underlying business processes, enhanced data management and service partner integration.

Three new mobile apps have gone live for Advanzia’s credit card customers in France (carte ZERO), Austria (free Mastercard Gold) and Spain (Tarjeta YOU), offering real-time transaction and available balance overview, monthly billing statements, customer authentication (SCA/PSD2 compliant), in-app validation of online transactions and biometric login using face ID and fingerprint.

4. Lunar and FIS

Nordic challenger bank Lunar selected FIS‘ cloud-based treasury and risk management solution with an aim to gain support in liquidity optimisation, risk management and expansion. Lunar selected FIS’ private cloud-based Ambit Quantum for simplifying hedge accounting, regulatory compliance etc. The FinTech will implement the solution on the private cloud under a managed services contract.

FinTech Lunar will be utilising FIS SWIFT Service Bureau for connecting its treasury and payment operation to banking partners through SWIFT and other industry exchanges and networks. The challenger bank said that it was looking for a treasury management solution that provides rich functionality while leveraging open application programming (API) interfaces to ensure simple integration with cloud-based applications.

5. Phos and bunq

FinTech phos announced a partnership with Dutch neobank bunq in a bid to transform payment acceptance in the retail space. bunq will be implementing phos’ solution, thus enabling customers to replace the physical POS terminals or cash with a software-based POS.

Neobank bunq stated that it will be offering the new feature to its retail merchant customers across its European markets, including Belgium, France, Germany, Ireland, Italy, the Netherlands, Portugal and Spain.

phos allows merchants to accept contactless payments on their own mobile devices without the need for additional hardware. Recently, phos and Stanchion Payment Solution announced a partnership for enabling payment processors and banks to speed up their time to market contactless payments acceptance solutions for European merchants. The companies will collaborate to help banks and payments companies meet customers’ demands for a range of secure payment options, including contactless payments straight from a mobile device.

6. Avaloq and Google Cloud

Digital banking solutions provider Avaloq announced a strategic partnership with Google Cloud for supporting financial organisations in their digital transformation. The partnership is expected to enable financial institutions to leverage Avaloq’s Banking suite and other platforms on Google Cloud.

The integration of Avaloq’s Banking Suite with Google Cloud will enable customers to offer provision infrastructure for the deployment of their Avaloq applications, combined with the flexibility provided by the cloud including Bare Metal solutions to meet the unique needs of each customer.

7. ThinCats and nCino

Cloud banking solutions provider nCino announced that UK-based alternative mid-sized business lender ThinCats will be expanding its use of the nCino Bank Operating System across its wider SME lending processes. The company recently deployed nCino’s Coronavirus Business Interruption Loan Scheme (CBILS) workflow.

The partnership will allow ThinCats’ SME clients to benefit from a better digital lending experience. ThinCats will utilise nCino to manage and improve the time-consuming process of collating documents through nCino’s Document Management, Collateral Management and Covenant features.

8. Sopra Banking and Kensington Mortgages

Sopra Banking Software announced the launch of a new digital platform for UK-based Kensington Mortgages. The upgraded software aims to improve the latter’s core platform and help deliver Sopra’s new digital solutions for onboarding journeys.

According to Sopra Banking Software, the platform is live across Kensington’s entire broker network. The project involved upgrading the core platform to leverage the FinTech’s platform, delivering the new digital broker portal and delivering integration out to key partners to simplify the end to end mortgage journey through Sopra’s marketplace platform.

9. Contis and Token

European payment solutions provider Contis announced a strategic partnership with open banking payments platform, Token in a bid to create new value for payment service providers, banks and merchants across Europe.  The partnership is expected to enable Token’s merchant, digital wallet and PSP customers to perform account pay-outs and refunds via the Token platform using established payment rails, such as Faster Payments in the UK, SEPA and SEPA Instant across the EEA.

Contis’ corporate customers will also be able to benefit from open banking including a reduction in the cost of payment initiation with Token’s account-to-account payments and data services. Post-completion of platform integration, Contis will be able to utilise Token’s AISP and PISP functionality to deliver open banking services to their end-customers through its platform.

10. Barclaycard Germany and Amazon

Barclaycard Germany has announced a partnership with Amazon in a bid to offer financing for purchases made through Amazon.de above €100. The partnership will allow Amazon customers to pay for their purchases in instalments directly during the checkout process and set up instalment payments on their future purchases.

Barclaycard Germany will also offer purchase financing through Amazon.de at a competitive APR of 7.69%. Users will be allowed to use the agreed rolling credit line added to their wallet on future purchases and also choose to make one-off repayments or pay the balance early in full.