PYMNTS-MonitorEdge-May-2024

Investors, Innovators Flex Their Open Banking Muscles

Open banking continues to fuel the collaborative efforts of banks, credit unions (CUs), FinTechs and other innovators. This week’s deep dive into the space finds Canada widening the scope of open banking initiatives, and investors preparing to accelerate funding for new ways to apply open banking to the business end user.

Jack Henry Embraces Autobooks Integration

Financial services technology provider Jack Henry is enhancing its Banno Digital Platform with an Autobooks integration, the firm recently announced. The platform, designed to enable financial institutions (FIs) to modernize their small business banking offering, will connect those FIs to enhanced payment and invoicing functionality, according to a press release. Their small business clients can use the offering to accept card and ACH payments, as well as generate and receive invoices, within their banking platforms. “There’s never been a greater sense of urgency to provide small businesses with the tools they need to improve cash flow and grow,” said Steve Robert, CEO of Autobooks. “By partnering with Jack Henry, we’re helping financial institutions succeed and remain at the center of their customers’ financial lives with relevant, contextual and self-service digital tools.”

Also see: Jack Henry Expands Autobooks Alliance With Banno Integration

Canada Ushers in Open Finance Amid FinConecta-FICANEX Technology Collab

A recent collaboration between FinConecta and FICANEX Technology signals the rise of not just open banking, but also open finance in Canada. FICANEX will license FinConecta’s open banking platform for credit unions and banks across Canada, leveraging APIs to provide flexible and buildable solutions for financial institutions. “Canada is going through a process of defining regulation around open banking and financial institutions, and the financial services sector is starting to pick up the benefits of doing that,” Jorge A. Ruiz, CEO of FinConecta, recently told PYMNTS.

Read More: In Canada, Basic Open Banking Just Got an Upgrade to ‘Open Finance’

Solarisbank Secures Funding for Embedded Banking Tech

As open banking initiatives give way to embedded banking efforts, Solarisbank is pressing forward with its API-first strategy. The company recently revealed a $224 million funding round, which will allow the company to acquire Contis. Based in Germany, Solarisbank offers APIs to enable third parties to build and embed a variety of financial products and services for their own clients. Decisive Capital Management led the firm’s Series D round, which TechCrunch said values the firm at about $1.65 million. Pathway Capital Management, CNP, Ilavska Vuillermoz Capital, Yabeo Capital, BBVA, Vulcan Capital and HV Capital also participated. Solarisbank noted that its Cotis takeover will help fuel the firm’s expansion throughout Europe.

Bud Links Banks to Minna Technologies via Open Banking

Open banking FinTech Bud is expanding its offering to FIs through a new collaboration with Minna Technologies. A recent announcement said FIs will have access to subscription management technology offered by Minna. The offering will combine with Bud’s data intelligence capabilities, enabling FIs’ clients to automatically analyze spend and provide actionable insights into their financials. “Our partnership with Bud illustrates our continued drive toward collaboration with the market as we continue on our mission to help retail banks deliver powerful digital experiences within subscription management,” said Joakim Sjöblom, CEO of Minna Technologies.

Element Ventures Announces New Fund for Open Banking

An investor in Minna Technologies, Element Ventures, recently announced a new fund totaling $130 million as it looks to accelerate its investment in FinTechs embracing open banking and PSD2 to modernize their products for end users. With a particular focus on B2B FinTechs, Element Ventures said it will focus on several areas, including InsurTech, throughout Europe as well as the U.S. and Asia, TechCrunch reported.

PYMNTS-MonitorEdge-May-2024