Top 10 FinTech deals of January 2021 (UK & Europe version)

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. The new year saw some significant deals being undertaken by FinTech companies.

Check out the top FinTech deals that took place in January 2021 (UK & Europe) :

1. Phos and Mastercard

FinTech Phos recently announced an expanded partnership with Mastercard to support Tap on Phone, a solution that turns phones into payment acceptance devices. SMEs, with the solution, can turn any near-field communications-enabled android mobile device into a PoS, accepting contactless payments from debit or credit cards, mobile wallets and wearables. The solution is expected to lower the barrier to entry for small and medium-sized enterprises that want to offer contactless payments.

According to phos, the android agnostic SoftPoS solution is expected to offer an alternative to cash and allow merchants to digitalise effectively. Mastercard has also raised the Card Holder Verification Limit (CVM), the amount merchants can accept for contactless transactions in over 80 markets, removing a further barrier to adoption and supporting retailers’ ability to offer a safe method of payment.

2. FSS and Okay

Global PayTech company, FSS Technologies collaborated with Norwegian FinTech Okay, in January, in a bid to offer focused authentication security to consumer payments including transaction validation and mobile authentication. The development aims to accelerate FSS’ reach within Strong Customer Authentication (SCA) support, at a time when the numbers of at-risk devices are increasing exponentially.

FSS stated that it expects to provide new offerings in the sectors of prepaid, debit and credit card management, omnichannel acquiring, AI-based payments, SCA, and smart reconciliation solutions. According to the companies, the partnership will see them securing consumers’ online and mobile purchases. They also aim to enable issuers to optimise customer experience and protect payments while simultaneously improving their revenues.

3. Finastra and KBC Bank

Belgium-based KBC Bank selected Finastra for managing its transition through the upcoming interbank references rates changes. The Bank chose Finastra’s Fusion Loan IQ Alternate Reference Rates (ARR) module and Fusion LIBOR Transition Calculator for facilitating rates management and further its lending business expansion.

The Fusion LIBOR Transition Calculator is expected to assist KBC Bank to calculate their own ARR or Risk-Free Rates (RFR) and interest accruals. The calculator’s open API facilitates the integration with systems that don’t yet have a solution in place for calculating ARR/RFR rates, thus reducing operational risk.

The FinTech also teamed up with HCL Technologies to provide treasury management technology in the cloud to smaller banks across Northern Europe, North America, India and the Philippines. The collaboration also brings together Digital Treasury as a Service offering, that aims to enable banks to effectively manage their treasury operations.

4. N26 and Allianz

Berlin-based digital bank N26 expanded its Allianz Assistance travel insurance coverage included with N26 You, N26 Business You, N26 Metal, and N26 Business Metal to cover epidemic and pandemic related claims. The company stated that trips starting on 19th January or later will cover cancellations as well as emergency hospitalisation or medical treatment abroad, repatriation assistance and cancelled/interrupted trips.

FinTech N26 had also introduced new features and initiatives along with the travel insurance expansion. These include the launch of instant banking service, which allowed new customers to begin using their accounts immediately through their digital wallets. It also allows them to switch to branchless banking immediately without having to wait for their physical card or worry about postal service interruptions during the lockdown. The company boosted its efforts on cybersecurity education with the launch of the Secure Online Banking consumer guide.

5. Temenos and Schroders Wealth Management

Switzerland-based Schroders Wealth Management selected Temenos‘ Wealth Front Office to automate and enhance its advisory business. According to Temenos, Schroders Wealth Management will implement the portfolio management system on its Transact core banking platform, thus enhancing capabilities for relationship managers, advisers and portfolio managers.

According to Temenos, the new solution includes dashboards for relationship managers and portfolio managers, client and investment profiling, investment proposal process, advanced order generation, comprehensive pre-and post-trade compliance checks, flexible benchmarking and performance reporting. It also provides a range of portfolio modelling and rebalancing tools, covering a wide range of assets, in a user-friendly and highly intuitive user experience.

In January, Czech Republic-based financial institution Komerční banka also selected Temenos Transact in a bid to enhance its retail and corporate banking solutions. Komerční banka, a member of the Société Générale Group, will benefit from improved account management services, reduced time to market and straight-through processing across its retail and corporate banking operations.

6. Marqeta and Tymit

UK-based credit card provider Tymit teamed up with Marqeta to propel the launch of its new app-based credit card offering for consumers. The partnership will allow Tymit to instantly issue virtual cards that allow users to opt-in for “buy now, pay later” instalments or access traditional credit on their mobile devices. Users will also be able to set personalised spending limits, thus giving users the choice and flexibility they need to manage spend in a way that suits their budget.

FInTech Tymit stated that the new app will do away with minimum payments and give customers the ability to create bespoke repayment plans, with interest paid on purchases rather than across the entire balance.

7. Banking Circle and PPRO

Local payments infrastructure provider PPRO joined forces with Banking Circle with an aim to enhance the former’s service offering, thus supporting PSPs working with cross border e-commerce merchants. Dr. Götz Möller, Chief Financial Officer, PPRO, explained, “Banking Circle goes to the heart of our proposition. Being able to make real-time settlements to many of our PSP-clients means we can provide reliable and fast services which sets us apart from our competition.”

According to PPRO, the collaboration will enable it to leverage Banking Circle’s accounts in multiple currencies and gaining access to various local clearing methods in just one solution. PPRO will be able to simplify internal processes as well as receive and make payments quickly. PPRO’s clients will benefit from real-time internal payments between Banking Circle accounts for PPRO and them, thereby streamlining real-time settlements.

8. Tink and BNP Paribas’ BNL 

Tink, the Swedish open banking platform provider, announced that Italian bank BNL has launched a multi-banking service with the former. BNL forms a part of the international group BNP Paribas. The collaboration aims to strengthen the collaboration between BNP Paribas and Tink that began in the first half of 2020.

According to Tink, it has worked along with the Italian bank BNL to facilitate the addition of a new multi-banking feature for BNL’s mobile banking app. The new multi-banking feature is expected to enable the bank’s customers to view their finances in one place as well as add checking accounts held with other banks in Italy, into the BNL environment.

9. Fenergo and Salesforce

Fenergo announced that it has launched Fenergo KYC & Onboarding for Salesforce on Salesforce AppExchange. The development is expected to provide customers with ways to deliver automated straight through client journeys while satisfying Anti-Money Laundering (AML) and Know Your Customer (KYC) regulatory requirements.

According to Fenergo, the app connects Fenergo’s client lifecycle management (CLM) and regulatory intelligence with Salesforce’s client relationship management (CRM), allowing financial institutions (FIs) to improve customer experience and accelerate onboarding through front-to-back office integration.

Financial institutions will be able to achieve a 360-degree client view via configurable workflows between front, middle and back-office systems and understand the status of AML and KYC compliance processes in real-time.

10. SIA and finleap

Open banking platform finleap connect has signed an agreement with SIA in a bid to deliver new Open Banking services to European banks, financial institutions, and FinTechs. The collaboration is expected to allow finleap connect and SIA to integrate their respective PSD2 compliant solutions enabling the adoption at international level of innovative use cases based on Accounting Information Services (AIS) and Payment Initiation Services (PIS) and boosting the growth of new digital payments applications to be provided through different channels.

According to the companies, the partnership will boost customers’ value proposition through new combined payment options and transactional flows. The Accounting Information Services allow financial institutions, FinTechs, and corporates to access the bank account of the customer, providing a detailed overview of the user’s finances and pursuing the creation of use cases aimed at enhancing the market value proposition.

The Payment Initiation Services enable them to take advantage of new payment systems underpinned by innovative digital channels reshaping a new user experience that is more enriched and customized. Indeed the user will be able to make any payment simply, safely, and in real-time.