TrueLayer, an API developer for financial institutions, has raised $7.5m to expand across Europe.
The investment was led by venture capital fund Northzone.
This capital injection will support expansion in Europe with its first targets being Germany and France. Funds will also be used to grow the size of its team and for developing new products which make the most of Open Banking and PSD2.
Since the launch of Open Banking at the start of the year, TrueLayer has formed a series of partnerships and integrations with a number of financial services. These include: Monzo, Starling Bank, Zopa, ClearScore, Canopy, Plum, BitBond, Emma, Anorak and CreditLadder. There are also a number of undisclosed partnerships in its pipeline which will go live over the next 12 months.
UK-based TrueLayer provides a suite of API solutions to enabling financial services to securely access data and initiate payments in real-time. The platform offers account verification, KYC processes, and transactional data for account aggregation, fraud protection, credit scoring and risk assessment.
The company was one of the first UK companies to be approved and registered as a payment institution by the FCA to provide account information and payment initiation services under Open Banking and PSD2.
TrueLayer co-founder and CEO Francesco Simoneschi said, “We are extremely excited to see so many companies becoming seriously interested in Open Banking and PSD2 and we continue to believe this is an unparalleled opportunity for the financial and tech industries.
“It is already driving innovation and competition which is great news for consumers, yet we are only 1% done. We want TrueLayer to be the key player in the creation of a secure infrastructure that underpins Open Banking and this investment is a big step forward on this journey.”
Last year, TrueLayer received $4.3m in funding across two separate rounds. Its Series A bagged $3m to support the growth of its team and broaden the coverage for banks. Prior to that, the company secured a $1.3m investment from Connect Ventures and Graph Ventures.
Last week, TrueLayer used its API solutions to support personal finance chatbot Plum integrate its service to UK challenger banks Monzo and Starling Bank.
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