Five Ways Partnerships Between Banks and Fintechs Help Drive Innovation

To steal a line from Rob Base and DJ EZ Rock, when it comes to innovation in fintech, it takes two to make a thing go right. Whether the “thing” is an end-to-end digital transformation or creating the technology infrastructure to enable firms to build and market their own innovations, collaboration and partnership with fintechs increasingly seems to be the path that the most forward-looking banks and other financial institutions are pursuing.

With this in mind, here’s a look at some of the more interesting recent partnership announcements over the past month – with an eye toward what these collaborations might be saying about the near-term future of fintech.

DBS Bank: Headquartered in Singapore. Total assets of $420 billion (SGD 579 billion) in 2019. Largest bank in Southeast Asia. Operates in 18 markets around the world.

  • Partner: Infor
  • Project: Digital trade financing
  • Objective: Faster “more cost efficient” financing for the 68,000+ SMEs on Infor’s Nexus network.

Royal Bank of Canada (RBC): Headquartered in Toronto, Ontario, Canada. Has 17 million clients in Canada, the U.S., and 34 other countries. Total assets of $1.2 trillion (1.49 trillion CAD) as of 2019.

  • Partner: Red Hat, Nvidia
  • Project: In-house, AI-based private cloud platform
  • Objective: The new build will allow the bank to develop “transformative intelligent applications” and to bring those solutions to market faster.

Orange: Telecommunications corporation headquartered in Paris, France. Fourth largest telecom in Europe and one of the ten largest in the world with 26 million customers. Total assets of $124 billion (€106 billion) and revenues of $49 billion (€42 billion) as of 2019.

  • Partner: Temenos, NSIA
  • Project: Orange Bank Africa launch
  • Objective: Partnership will bring savings and micro credit services to underserved customers in Cote d’Ivoire, Burkina Faso, Mali, and Senegal.

Lloyds Banking Group Headquartered in London, U.K., Lloyds is the country’s largest digital bank with 16.9 million active customers online and 11.5 million on mobile. Founded in 1765, the bank currently has total assets of more than $1 billion (£833 billion).

  • Partner: Form3
  • Project: Along with partners Google Cloud and Microsoft, Form3 will help the U.K.-based bank “investigate and develop” a cloud-payments-as-a-service platform.
  • Objective: The collaboration, which also includes a minority equity stake in Form3, will simplify Lloyd’s payment capabilities and support enhanced data and new overlay services.

Banca Ifis: Specialty commercial and corporate banking firm for SMEs headquartered in Venice, Italy. The firm has more than 130,000 retail clients in the country, and online funding and deposits totaling more than $4.7 billion (€4 billion).

  • Partner: Raisin
  • Project: New deposit products
  • Objective: Raisin’s customers in Germany will gain access to deposit solutions available from Banca Ifis. The collaboration will enable German customers to take advantage of relatively higher interest rates available in Italy.

Other fintech/financial institution partnerships of note this month:


Photo by maitree rimthong from Pexels

Minna Technologies to Power Subscription Management Service for ING

Banking customers at ING Belgium will soon have help managing their recurring expenses. That’s because Minna Technologies has partnered with the bank to launch a new subscription management service.

Under the agreement, ING Belgium’s 1.8 million digital banking customers will be able to manage their subscriptions without leaving the digital banking channel. Minna’s solution helps users view all of their recurring subscriptions in a single place, allows them to cancel existing subscriptions, and shows them potential alternatives to some of their subscriptions.

“This is a clear example of impactful Fintech partnerships that we aim to scale within ING,” said Global Head of ING Labs & Fintechs, Olivier Guillaumond. “It will offer a differentiating experience to our customers allowing them to have a better insight into their subscriptions and save millions of euros via cancellation and fully automated switching services.”

The integration is the result of Minna Technologies’ participation in last year’s ING Labs Brussels program. During the program, the two companies completed a proof-of-concept that demonstrated the value of subscription management for users in the Benelux region.

“ING Labs Brussels is a special purpose vehicle concentrating on validating proof of concepts with mature fintechs to bring maximum value for our clients so they can stay a step ahead in their lives,” said Guillaumond, adding that it has “the potential to expand to other countries.”

Minna was founded in 2016 and has since helped users save more than $45 million with its subscription management solutions. The Sweden-based company, which has raised $6.2 million, recently demoed at FinovateEurope 2019. ING Brussels joins SpareBank1, Visa, Swedbank, and Danske Bank as clients.


Photo by Morning Brew on Unsplash

Minna Technologies Teams Up with OP Financial Group

Minna Technologies, a Swedish banking tech start-up, has sealed a partnership deal with OP Financial Group, Finland’s largest financial group, reports Tanya Andreasyan of Fintech Futures (Finovate’s sister publication).

The two companies first started working together in 2018 at OP’s Open Banking Startup Partnership Programme, and the latest deal is the extension of that collaboration.

Minna Technologies is an authorised Payment Initiation Service Provider (PISP) and Account Information Service Provider (AISP), operating under the supervision of the Swedish Financial Supervisory Authority (FSA).

Using Minna’s tech, OP will be able to better to capitalize on its Open Banking Strategy and PSD2 APIs developed for third-party providers, the vendor says. CEO Joakim Sjöblom described OP as “a leader in the Finnish market in terms of innovation, customer focus, and delivery of excellent customer experience.”

“This partnership is a great example of the importance of finding the right match in partners,” said Masa Peura, SVP of payments and personal finance management at OP, adding that the bank was “impressed by Minna Technologies’ innovation and technical capabilities.”

As for the tech firm, taking part in OP’s start-up program was “a great opportunity to get to know the OP organization, validate the technical approach, as well as the need for subscription management in the Finnish market,” said John Nyström, country manager for Finland at Minna Technologies.

Starting as a consumer application for subscription management (Mina Tjänster) in 2016, Minna Technologies has grown since to become an integrated platform for retail banks and service providers in the Nordics to improve the digital banking experience.

The company said its subscription management platform has saved more than €30 million on behalf of its users. Swedbank, SpareBank 1 and Danske Bank are all on its client list.

Minna Technologies demonstrated its subscription management platform for banks to offer to their customers, Minna Tech, at FinovateEurope 2019. The technology provides users with an automated overview of their subscription accounts and all recurring charges, making it easier for them to cancel unwanted subscriptions as well as switch to other providers that offer a better value for their services.

Minna Technologies has raised $6.2 million in funding from investors including Zenith Group and Swedbank.

Finovate Alumni News

On Finovate.com

  • ti&m and aixigo Partner to Digitize Wealth Management.
  • TransferWise Inks International Payments Deal with EQ Bank.
  • Coinbase’s New Partnership Helps Give Back with Crypto.

Around the web

  • ThetaRay Names Edward Sander as Chief Product Officer.
  • Frontier Communications deploys Neustar Certified Caller STIR/SHAKEN technology across its IP network to digitally certify phone calls.
  • Citi and PayPal expand partnership for institutional clients.
  • Worldline and CashSentinel partner to provide a payment solution to comply with Swiss and European online marketplaces.
  • Alaska USA Federal Credit Union selects MX to power mobile banking platform.
  • Minna Technologies deepens partnership with OP Financial Group.
  • Chetu continues European expansion, opens new UK office.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • SME Challenger Bank Recognise Signs on Mambu.
  • Digital Realty to Buy Interxion for $8.4 Billion.

Around the web

  • Stratifyd expands workforce by 200 people, moves to a new 30,000 square-foot office.
  • Lendio named to MountainWest Capital Network’s 2019 Utah 100 List.
  • Square leverages DriveWealth’s trading API to compete with the likes of Robinhood.
  • Signicat now offers identity verification in 208 countries through identity document scanning, web-based video interviews, and NFC scanning of passports.
  • SpareBank1 to leverage Minna Technologies to help customers cancel their unwanted subscriptions.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • When Stockholm Met Silicon Valley: Trustly to Merge with PayWithMyBank.
  • IBM Launches Hyper Protect Accelerator for Pre-Series A Startups.

Around the web

  • Multiple Finovate alums listed on Growjo’s list of 10,000 fastest growing companies.
  • Minna Technologies partners with Visa to enable subscription management through European retail banks.
  • Trust Science partners with Inovatec Systems Corporation to release an automated lending platform.
  • BeSmartee integrates with LoanBeam to streamline the mortgage loan application process.
  • Lendio CEO Brock Blake named EY Entrepreneur Of The Year finalist.
  • Revolut goes live in Australia as beta offering.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Minna Technologies Raises $6.3 Million

Subscription management tool for online banks Minna Technologies just announced it has received a $6.3 million (€5.6 million) investment, bringing its total funding to almost $9 million.

Zenith Group led the round, followed by Visa and existing investor Swedbank. Minna will use the funds to increase its presence in Europe. To support these plans, the company will bolster its team and open a new office in Europe.

“This investment round makes it possible for us to scale up and execute on our European expansion plans. As many European banks have started to embrace FinTech partnerships, we have seen a dramatic increase in the interest of our subscription management platform,” said Minna CEO and Cofounder Joakim Sjöblom. “Our current bank partnerships have proved that subscription management is well received by banking customers and that it is an essential part of digital banking.”

Founded in 2014, Minna originally began as a consumer-facing app for subscription management, then launched as a bank-integrated platform in 2016. Since then, the company has helped consumers save more than $33.5 million in unwanted subscriptions. The company is partnered with several top-tier banks across Europe, including Swedbank and Danske bank, and has a pilot agreement with OP bank.

Sjöblom demoed Minna at FinovateEurope 2019 in London. The company is headquartered in Gothenburg, Sweden and has 34 employees. In 2017, the company’s revenues totaled $536,000.

Finovate Alumni News

On Finovate.com

  • Jumio Teams Up with TruNarrative to Fight Financial Crime.
  • Currencycloud to Power Cross Border Payments for Fellow Fintech.
  • Minna Technologies Raises $6.3 Million.

Around the web

  • Dwolla introduces Labels to help application owners customize how funds are allocated.
  • Akamai launches Enterprise Defender to help customers secure all enterprise applications and users.
  • Kabbage to power loans for Azlo small business clients.
  • Lighter Capital has financed more than $150 million in 500+ rounds of revenue-based financing to over 300 startups.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • eToro Buys Blockchain Company Firmo.

Around the web

  • ING Belgium and ING Netherlands invite Minna Technologies to participate in the ING FinTech Village accelerator.
  • Tink delivers split transactions feature.
  • Pitchbook ranks OurCrowd as most active Israeli VC firm in terms of the number of deals.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • PayActiv and Visa Help Workers Access Earned Wages Earlier.
  • Temenos Drives Digital Transformation for Africa’s Vista Bank.
  • iSignthis Inks Banking and Payments Deal with Ibanera.

Around the web

  • BioCatch adds touchscreen pressure as a new behavioral biometric value.
  • NCR, Bluefin, and Powertranz team up to support POS card processing for Caribbean quick serve restaurants.
  • Experian launches Singapore-based incubator, Experian X Labs.
  • ETFLogic unveils ETFLogic Pages, a new platform for analyzing exchange-traded funds.
  • Minna Technologies and Exate earn spots in the fourth edition of ING’s FinTech Village.
  • BlueRush deploys its Individeo platform with a large Colombian bank courtesy of a partnership with Bee Concept.
  • Inspire Federal Credit Union goes live with NYMBUS.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

FinovateEurope Sneak Peek: Minna Technologies

A look at the companies demoing live at FinovateEurope on February 12 through 14, 2019 in London, U.K. Register today and save your spot.

Minna Technologies is the world’s leading subscription management solution, built to be integrated with retail banks.

Features

  • Stimulate customer engagement and customer satisfaction
  • Experience new revenue streams, enabled by Open Banking
  • Learn how Minna can increase conversion rates of your core financial products

Why it’s great
Digital banking and personal finance management are moving from insights to actions. Forget about graphs and pie-charts; the real value comes when you help the customer to make a real change.

Presenter

Joakim Sjöblom, Co-Founder and CEO
Sjoblom has founded three companies over the last 10 years and spent the latest five years within fintech. As a founder of Minna Technologies, he conducted partnerships with leading retail banks.
LinkedIn

 

Finovate Alumni News

On Finovate.com

  • BlueVine Teams Up with Bullhorn to Help Finance Staffing Firms.

Around the web

  • Avaloq announces doubling the size of its London office.
  • Entrepreneur Network partner Mars Discovery District interviews Horizn CEO, Janice Diner.
  • Qatar National Bank (QNB) the largest financial institution in the MENA region to deploy IGTB’s corporate banking platform.
  • Lendio earns spot as top financial services brand on Entrepreneur’s Franchise 500 roster.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.