FINOM, which offers a mobile-first financial management platform to SMEs and freelancers, has acquired cross-border PayTech Kapaga for an ‘eight figure sum’.
Through this acquisition, FINOM hopes to bolster its position in financial services, as well as boost its expansion plans in the UK and across Europe.
FINOM stated that just 3% of the 24 million European SMEs use digital services to manage their finances. The majority of owner-managed businesses use traditional banks, despite the growth of the FinTech sector and personalised offerings.
It was this gap that led to the creation of FINOM. It has established a mobile-first platform that provides SMEs and freelancers with a host of back-office financial management products. Features include e-invoicing, transactions within the Single Euro Payments Area (SEPA), and digital wallets.
Since its launch in 2019, the app has seen sizable growth in France, Italy and Germany, and is now live in 27 countries. It plans to expand into more European markets soon.
With its eyes on expansion, it acquired Kapaga to support this goal.
Kapaga was founded in 2020 by Bloomberg alumna Katya Dorofejeva and has seen revenue growth surpass £10m a year. It serves as a cross-border payment service that facilitates international trade for SMEs.
Currently, Kapaga supports over 200 UK SMEs and corporate entities in managing their finances and operating internationally across currencies. Its cloud architecture provides transparency and efficiency and supports money transfers to over 190 countries.
Kapaga founder and CEO Katya Dorofejeva said, “Joining forces with FINOM enables us to explore a unique and growing product. Entrepreneurs and freelancers are facing a plethora of challenges in setting up tactile business accounts that serve their needs. There is currently no continental fintech player that equally serves the UK and Europe in specifically targeting SMEs – until now!
“This merger solidifies two companies’ pursuits of providing tailored payment services for the entire continent. Kos and the team really understand the market and the specific needs of small and medium sized businesses. I am sure that we will benefit from each other’s knowledge and expertise to serve this crucial segment and grow the fintech arena.”
Earlier in the year, FINOM signed a deal with financial crime prevention startup Resistant AI. Through the deal, FINOM has enhanced its ability to monitor transactions an uncover any unusual or anomalous behaviour.
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![Temenos (SIX: TEMN) today announced that National Bank of Iraq (NBI), part of the Capital Bank Group, has successfully gone live with Temenos core banking and payments. NBI, which has 27 branches across Iraq, offers a comprehensive range of services to individuals and businesses in the country. Since 2005, NBI has been majority owned by Capital Bank, one of the top financial institutions operating in the Jordanian and regional markets, with assets of approximately JOD 7.6 billion[1]. With this implementation, NBI moved from its legacy systems onto the same core banking platform as other entities in the Capital Bank Group. This will enable NBI to operate more efficiently and integrate seamlessly with other systems to develop new products faster and deliver an improved customer experience. Capital Bank Group is a long-standing Temenos customer with other entities in the Group including Capital Bank of Jordan, Bank Audi, Société Générale Bank Jordan and NBI Saudi Arabia, already on the Temenos platform. NBI also becomes the first part of the group to adopt Temenos Payments, which enabled the bank to process more than 100,000 transactions of incoming and outgoing domestic and international payments in the first 15 days of operation, with a 99% straight-through processing rate. The migration to the Temenos platform for core banking and payments at NBI was completed in under 12 months thanks to Temenos’ pre-configured banking and payments capabilities and APIs which reduced the need for complex customizations, as well as close collaboration between Temenos, NBI, Capital Bank and delivery partner ITSS. This success was recently recognized in the IBS Intelligence Innovation Awards, with Capital Bank winning ‘Best Implementation of Core Banking Services'. The implementation at NBI follows several other successful transformation projects with Temenos for Capital Bank in the last few years, including the launch of NBI’s branch operations in Saudi Arabia in just 45 days, as well as the integration of Bank Audi and the former Jordanian operations of Société Générale, each of which was achieved in under four months. Collectively, these projects helped Capital Bank to increase operational efficiency by more than 50% within three years, bringing significant cost savings and an improved customer experience. With faster, more accurate processing and immediate service requests, the bank has maintained high customer retention rates and a reputation for service excellence. Izzidin Abusalameh, Chief Operations Officer, Capital Bank Group, commented: “This achievement marks a significant milestone in our digital transformation journey and positions us as a leading player in the banking industry. We have seamlessly transitioned the National Bank of Iraq to a cutting-edge core banking system which will not only enhance operational efficiency but also support providing our customers with a superior digital banking experience. Our continued partnership with Temenos has not only provided us with an advanced technological platform but has also facilitated a culture of flexibility and adaptability, enabling us to execute our ambitious growth plans.” Lee Allcorn, Managing Director, Middle East & Africa, Temenos, said: “Congratulations to National Bank of Iraq and the Capital Bank team on this successful implementation that gives NBI business agility and the same modern technology platform and ability to deploy fast with pre-configured banking capabilities as the rest of the group. With Temenos, Capital Bank Group is future-ready, and we are proud to support them as they continue to innovate and leverage our platform to grow sustainably and enhance the banking experience for customers.”](https://fintech.global/wp-content/uploads/2024/04/rupixen-Q59HmzK38eQ-unsplash-2-100x70.jpg "Flutterwave teams up with Acquired.com to streamline outward remittances in EU and UK")