The deal will see the Swedish company expand its presence in the German-speaking market as competition increases heavily.
Fintech start-up Tink has acquired Germany’s FinTecSystems as it seeks to garner a firmer hold of the open banking market.
The deal will bolster Tink’s position in the open banking field, especially in Germany, Austria and Switzerland where FinTecSystems has more than 150 clients, including banks and other fintech companies like N26.
“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,” Daniel Kjellén, chief executive of Tink, said.
“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, which is headquartered in Stockholm, has investors including PayPal’s venture arm and NatWest. It closed its last funding round of €85m in December 2020.
This year it plans to add more than 200 new employees to its ranks as it competes in the rapidly growing open banking space where rivals Plaid and TrueLayer are heavily active. Both recently raised large funding rounds.
FinTecSystems, based in Munich, develops infrastructure for open banking and data analysis for financial institutions. It has raised €4.5m since it was founded in 2014 and its 67 employees will now be joining Tink.
“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,” managing director Stefan Krautkrämer said.
The deal marks Tink’s third company acquisition after it acquired two other fintech start-ups, Eurobits and Instantor, last year.