Tink acquires leading german open banking technology provider FinTecSystems

May [18,] 2021: Open banking platform Tink continues its expansion across Europe with the acquisition of FinTecSystems – a leading German open banking infrastructure fintech, powering over 150 banks and fintechs in Germany, Austria and Switzerland. The acquisition will strengthen FinTecSystems’ already leading market position, with Tink further fuelling the company’s high growth and open banking capabilities in the DACH region.

FinTecSystems specialises in data analytics, digital account checks, account aggregation and open banking payments, with customers including N26, DKB, Santander, Solarisbank and Check24. With connectivity to more than 99% of banks in the DACH region, alongside leading value-added data services, FinTecSystems delivers account information in a way that enables companies to make better, data-driven and automated decisions – with three in every four online credit decisions in Germany involving FinTecSystems.

The German open banking platform has unrivalled local customer knowledge in payments, ecommerce, banking and lending – with risk decisioning and open banking payments at the core of FinTecSystems’ services. The combination of Tink and FinTecSystems will offer both local and international customers in the region the most complete solution when partnering for open banking technology.

FinTecSystems was founded in 2014, with 67 employees operating out of four offices in Germany. Following the acquisition, FinTecSystems will continue to serve new and existing customers in the DACH region, as part of Tink.

Stefan Krautkrämer, co-founder and Managing Director of FinTecSystems said:

“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.”

Daniel Kjellén, co-founder and CEO, Tink, added:

“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.”

Tink’s technology and connectivity already power some of the world’s leading banks and fintechs, including PayPal, NatWest, ABN AMRO, BNP Paribas and American Express. This acquisition builds on the €175 million investment Tink secured through two funding rounds in 2020, and complements Tink’s organic growth strategy to enhance its platform, increase connectivity and expand its product offering across Europe.

In 2021, Tink has committed to adding 200 new recruits to the almost 400 employees it has today, to double Tink’s market presence for payments by expanding its payment initiation technology to 10 European countries.

Founded in 2012 and headquartered in Stockholm, Tink currently serves 18 markets out of 13 local offices, with the open banking platform now used by more than 10,000 developers.

The acquisition of FinTecSystems is conditional upon approval from the national competent authorities.

About FinTecSystems

FinTecSystems is a leading German open banking platform specialising in account aggregation, data analytics and open banking payments. With connectivity to more than 99% of banks in the DACH region, alongside leading value-added data services, FinTecSystems delivers account information in a way that enables companies to make better, data-driven and automated decisions. FinTecSystems serves more than 150 banks and fintechs in the DACH region. Founded in 2014, FinTecSystems’ 67 employees operate out of four offices in Germany.

About Tink

Tink is Europe’s leading open banking platform that enables banks, fintechs and startups to develop data- driven financial services. Through one API, Tink allows customers to access aggregated financial data, initiate payments, enrich transactions, verify account ownership and build personal finance management tools. Tink connects to more than 3,400 banks that reach over 250 million bank customers across Europe. Founded in 2012 in Stockholm, Tink’s 400 employees serve more than 300 banks and fintechs in 18 European markets, out of offices in 13 countries. We power the new world of finance. For more information, visit tink.com.

FTS shows strong growth and generates revenues in the millions as well as first profits

Munich, September 11th 2020. FinTecSystems (FTS), the leading infrastructure fintech for open banking and account data analysis, announces that it generated revenues of EUR 3.12m in fiscal year 2019. Thus, as in past years, the open banking fintech more than doubled its earnings from the previous year. In 2020, the result is also expected to be approximately doubled.

Since spring 2020, FTS has been operating profitably and expects a clearly positive six-digit profit for the full year 2020. This makes FTS an exception among fintechs in growth phases. In previous years, FTS could already gradually decrease annual losses. In 2019, the loss was just under 1m EUR, compared to 1.7m EUR in 2018.

“Open Banking is becoming the central infrastructure of digital banking. With more than 6,000 connected banks and over 150 customers, we see FTS as the open banking market leader in the German-speaking region and are pleased about our strong growth in recent years. We want to further expand this growth rate. Business has grown faster in recent months than we had initially planned, and Covid-19 has further accelerated the online trend which supports our performance,” says Stefan Krautkrämer, Founder and Managing Director of FTS.

In the coming months, FTS intends to expand its technology and market leadership. To this end, more than 2m EUR will be invested in product development in 2020 alone, which will flow, among other things, into the further development of the automated, machine learning based categorization of financial data, which is a basis for the complete automation of credit decisions. Already today FTS provides the technological infrastructure for 3 out of 4 access to account based online loan applications in Germany.

FTS also plans to expand internationally with its existing customers. Besides Spain, Italy and France, the Benelux countries are also on the roadmap. For international growth, expansion of product and market leadership as well as team growth from 60 to up to 90 employees, the company plans to raise additional capital from 12 to 15m EUR from external investors in the course of next year.

About FTS:
FinTecSystems (FTS) is a B2B Fintech, founded in 2014 and BaFin-licensed since 2019, specializing in open banking infrastructure and (financial) data analysis. The company is managed by the experienced founders Stefan Krautkrämer and Dirk Rudolf, who are considered the initiators of PSD II and Open Banking due to their previous foundation of SOFORT Überweisung, which they later on sold to Klarna. Through this history, the FTS team has reliably forecasted industry developments on several occasions and has supported customers and supervisory authorities with its knowledge. FTS is the clear market leader in the area of open banking in the German-speaking region. The company provides access to more than 6,000 banks and reaches over 500 million end customers. More than 150 companies, including financial institutions such as Santander, DKB or N26, international corporates such as Experian as well as fintechs and comparison portals, rely on the technology and data analysis of the fintech. FTS claims to have the most powerful analysis engine on the market with an accuracy in categorizing data of over 98%.

FinTecSystems Receives BaFin Permission as an Account Information Service Provider and Payment Initiation Service Provider

  • FinTecSystems is one of the first FinTechs to receive full regulatory authorisation
  • The banking API provider enables its customers to use the license via the PSD2 License as a Service model

Munich, 5th March 2019 – FinTecSystems (FTS), one of the leading banking API providers and experts in the field of financial data analysis, received BaFin authorisation on 1st March 2019 as an Account Information Service Provider and Payment Initiation Service Provider. This enables the Munich-based company to offer its full range of services in a secure regulatory environment – from digital bank information to payment initiation. Having received authorisation from the supervisory authority, FTS will immediately strengthen its “License as a Service” (LaaS) model: FTS customers can now use the BaFin license as an Account Information and Payment Initiation Service Provider. With the PSD2 License as a Service, FinTecSystems brings companies such as billing and accounting programmes, factoring providers, lending platforms and the like under its own regulatory umbrella. This way, they comply with the BaFin requirements without having their own license. With the LaaS model, the companies concerned can offer their services in conformity with PSD2 – a further aspect of this extensive service offering.

“We are so pleased to have received BaFin authorisation after all our hard work. Since it was founded in 2014, FTS has been offering Software as a Service models as well as integrations conforming to regulatory requirements. The authorisation that has now been granted was the missing building block for us. This authorisation enables us to add another service to our customer-centric offering: Under the ‘umbrella’ of our PSD2 license, customers, including numerous FinTech companies, can offer their services in a legally compliant environment without having to deal with complex regulatory, technical or contractual challenges”, explains Dirk Rudolf, Managing Director and Founder of FinTecSystems.

In April 2018, FinTecSystems applied for the BaFin license as an Account Information and Payment Initiation Service. With the PSD2 License as a Service, FinTecSystems now offers its customers lasting legal security in a smart way: All FTS customers who opt for this solution are tested and receive a certificate including a usable seal (“certified partner”) after successful compliance and KYC testing by FinTecSystems. Furthermore, companies also eliminate the cost of legal advice and the resources required for the time-consuming licensing process. FinTecSystems, which sees itself as an infrastructure partner for banks, FinTechs and financial service providers, is thereby propelling the digital transformation of the financial sector through regulatory security and support of new business models.

Domonda, a company specialising in automated accounting, is one of the first companies to start using the PSD2 License as a Service provided by FTS.

“For us at Domonda, being able to use the PSD2 license provided by FinTecSystems is of paramount importance. We automate accounting and payment transactions for start-ups, scale-ups and digital leaders across the DACH region. FinTecSystems’ unique selling point is its comprehensive bank coverage and data quality. With the PSD2 License as a Service, FinTecSystems demonstrates absolute customer focus and a partnership approach to cooperation. We hope to establish a long-term relationship with FinTecSystems – the extensive expertise of the FTS team was what convinced us”, explains Michael Haller, CEO of Domonda GmbH.

History of the FTS founders decisive for the origins of PSD2

The founders of FinTecSystems have long-standing experience in the area of banking and payments. In 2005, Dirk Rudolf und Stefan Krautkrämer were some of the first employees to develop the payment service “SOFORT Überweisung” into one of the leading internet payment methods in Europe. The bank-independent payment method was one of the main reasons behind the European Commission’s decision to liberalise electronic payments. In 2014, Dirk Rudolf und Stefan Krautkrämer founded FinTecSystems and have since chosen to specialise in Payment Initiation Services and the fully automated financial analysis of online banking data. With the help of a PSD2-compliant API, FinTecSystems covers all banks (more than 5,000 credit institutions, 99.5 percent bank coverage, around 100 million online banking accounts) in Germany, Austria, France and Spain.

About FinTecSystems
FTS is a B2B Fintech, founded in 2014 and licensed by BaFin as a payment initiation and account information service since 01 March 2019. FTS is specialized in open banking infrastructure and data analysis. With our digital infrastructure and leading machine learning technology, we prepare account data in a way that enables companies to make better, data-driven and automated decisions. We are the market leader in the DACH region in open banking with access to over 6000 banks. More than 150 companies place their trust in us, including banks such as Santander, DKB and N26 as well as all national comparison platforms. For example, our products accelerate loan commitments, we minimize payment default risks and we categorize revenue data for our customers in real time so that it is meaningful.