Open banking is full swing, which is good news for Bud, a fintech startup that offers a technological solution to banks seeking to connect their apps and data to third-party financial service providers. TechCrunch reports that the London-based company has closed over $20 million in Series A funding.
The outlet reports that investors in this round include banks such as HSBC (which is also a customer, as First Direct is a Bud client), Goldman Sachs, ANZ, Investec’s INVC fund, and InnoCells as well as participants such as former executive Lord Fink and VC firm 9Yards Capital.
Bud began as a consumer-focused app for users who wished to consolidate financial services in one simple interface, but has transitioned to an Open Banking/PSD2-friendly technological platform for banks.
“Essentially, Bud acts as the tech layer that intelligently connects bank account data to third-party financial services, including those provided by fintechs and more traditional financial providers, as well as doing a lot of the other heavy-lifting required to create new consumer experiences from bank data.”
“Essentially, Bud acts as the tech layer that intelligently connects bank account data to third-party financial services, including those provided by fintechs and more traditional financial providers, as well as doing a lot of the other heavy-lifting required to create new consumer experiences from bank data,” explains TechCrunch.
“The work we have done with First Direct… is a showcase of features and functionalities made possible by new regulation, data science and relevant connections to fintech and banking services,” Bud CTO and co-founder George Dunning told TechCrunch.
“We have built a number of data enrichment features using transactional data to make people’s lives that little bit easier. Connection and aggregation of people’s accounts is the standard now, so we focused on things like increasing financial literacy. ‘Smart Balance’ is a feature that shows users what they can safely spend and ‘Goals’ help them plan ahead. Our advanced regular payment finder filters and tracks bill payments and if you can save money Bud connects you to a service that will make it happen,” he added.
Funding will go towards expanding the Bud team. The company plans to double its headcount from its current number of 62 employees to create what it claims will be the “largest team dedicated to Open Banking in the world,” according to TechCrunch.