German banking service provider Figo and fintech platform Finreach Solutions plan to merge into one company, reports Antony Peyton of Fintech Futures (Finovate’s sister publication).

The merger is subject to the approval of the Federal Financial Supervisory Authority (BaFin). The duo says their consolidation is the logical result of a pre-existing, long-lasting partnership.

“With our consolidation, we are responding to the growing market need for specific applications that go beyond data connectivity. Our goal is to become the leading fintech platform that delivers high quality [Software-as-a-Service] SaaS applications and API solutions – pan-European and PSD2-licensed,” said Markus Dränert, CEO of Finreach Solutions.

In the CEO role, Dränert will lead the company, which will merge gradually over the course of 2019, together with Cornelia Schwertner, chief risk officer (CRO) of Figo, and Taner Akcok, chief product officer (CPO) of Finreach.

André M. Bajorat, the CEO of Figo up until now, will soon join the supervisory board of the new company. He will also bolster the team at Finleap, a fintech ecosystem in Europe, where Finreach was developed.

As a lead investor, Finleap will also invest a “seven-digit sum” to finance growth.

Both company locations in Berlin and Hamburg will be maintained, as well as the respective teams. Dränert says the new team size will be about 90 employees.

FinTech Futures contacted the two firms to find out what the name of the combined entity will be.

A spokesperson said: “As of today, only the foundation for the merger is laid and the process of growing together just begins. This also means, that there has no decision been made concerning the company name yet.”

Figo demonstrated its technology at FinovateEurope 2013. The company was founded in 2012.