Latvia’s Open Banking Fintech Nordigen Acquires an Extra €2.1M, Completes 1,000+ Financial institution Integrations

roThe staff at Nordigen notes that it’s simply been half a 12 months since they introduced Europe’s first “free” Open Banking API, nevertheless, they’ve already managed to introduce 1,000 financial institution integrations and purchase an extra €2.1 million.

The Latvia-based Nordigen staff writes in a weblog publish that they kicked off their “freemium” enterprise mannequin on December 1, 2020. At the moment, there have been solely 300 European financial institution APIs, which implies they managed “so as to add 700 in only a few months.”

Nordigen additionally talked about that their new enterprise mannequin already “exhibits promise” and has managed to draw investments from Black Pearls VC, Inventure, Highgoal Capital, ID4 Ventures, Calchas Holding and angel buyers Artis Kehris, Henry Nilert, Gerri Kodres and Riivo Anton.

Rolands Mesters, CEO and co-founder of Nordigen, acknowledged:

“We built-in extra banks within the final six months than our opponents managed in an entire 12 months. Having much less legacy know-how to keep up means we are able to transfer lots quicker.”

Nordigen’s enterprise has been constructed on banking information analytics and presents key information insights. After teaming up with incumbent Open Banking platforms and experiencing firsthand having to pay for an API, the Fintech agency determined they “might do issues higher.”

The announcement additionally talked about that they’re investing extra capital into bettering their API platform – which ought to permit Nordigen “to deal with the inflow of shoppers additionally fleeing exorbitantly priced open banking information providers.”

The Nordigen staff additionally famous that they’ve “already managed to greater than quadruple our variety of API customers inside 4 months, and the current launch of our self-service platform ought to additional velocity up the rise.”

The announcement additional famous:

“At Nordigen we imagine that European open banking information must be free not only for open banking platforms, but additionally for the builders that use the platforms to hook up with financial institution accounts and construct their functions. Open banking incumbents nonetheless cost builders for entry to financial institution APIs. As a substitute of creating open banking extra accessible, they’re taxing entry to information that’s free underneath European banking legal guidelines (PSD2). We don’t suppose it’s truthful.”

The corporate added:

“As well as, we’re dedicated to focusing solely on open APIs created by banks. A number of the giant trade gamers nonetheless use screen-scraping and reverse engineering know-how because the default for connecting to European banks.”

Mesters additionally famous that it’s now time to “wipe out” display screen scraping in Europe. The method is sort of expensive and “hacky.” He identified that banks have created wonderful APIs to “let folks migrate their account info securely and with out friction. Nordigen permits builders to hook up with these financial institution APIs at no cost.”

Use circumstances for open banking are “quickly” increasing in a number of key sectors, the announcement revealed whereas including that the Purchase Now, Pay Later or BNPL sector went by way of regular progress in the course of the previous 12 months, and the non-public finance vertical is “primed for the subsequent super-app to look on the scene.”

The announcement added that bank cards and numerous lending functions have “a vital want for dependable information evaluation and insights.” The growth of open banking “permits fintechs to entry consumer information and construct higher buyer experiences,” the replace famous.

Aleksander Dobrzyniecki remarked:

“Establishing belief between the rising variety of on-line transactions is a major ache level for quite a few industries. Nordigen’s skilled staff and the world’s first free open banking information hub satisfied us to assist the corporate on this spherical. Entry to banking information is changing into a commodity and Nordigen is creating the subsequent worthwhile layer on prime by turning fragmented monetary information into usable info for numerous sorts of companies.”

As beforehand reported, Nordigen is the primary “free” Open Banking API in Europe offering connections to giant European banks. Since launching its providers again in 2016, Nordigen has been an “trade chief in constructing options for turning uncooked transaction information into actionable insights.”

As a licensed Account Data Service Supplier (AISP) licensed in 31 European nations, the corporate “ensures that there are not any extra upfront commitments and no hidden prices – simply free entry to PSD2 information,” the announcement famous whereas including that their providers are being utilized by  banks, lenders, and Fintechs throughout Europe, and prospects utilizing the free API have “already quadrupled in over only a few months.”