Open banking fintech gains seed funding

Published: 16 May 2019

Edinburgh-based fintech The ID Co has received $2 million in seed funding from global technology investor Amadeus Capital Partners, fintech fund SixThirty and other investors.

The ID Co aims to help businesses such as lenders take on their customers more efficiently with its technology removing the friction caused during the application processes by checks on risk, fraud, compliance and regulation.

This funding gives us the support we need to execute our plan to bring bank data to the global market...

James Varga, CEO, The ID Co

 

The ID Co says its mission is to make bank data readily available to any business so that it can revolutionise its offering and transform its customers’ experience. 

Using open banking data, it aims to reduce operational costs for businesses and unlock, from bank data, the information required for lenders to grant, or deny loan applications. DirectID Insights user numbers have grown rapidly in the UK and US and include Clydesdale and Yorkshire Bank, Prosper, Marlette and LendingMate.

The ID Co’s Income Verification product uses six algorithms to give a sound basis for assessing a loan application. The tool also gives additional insights such as showing supplemental income and whether the applicant’s income changes over time. 

Nick Kingsbury, partner at Amadeus Capital Partners, said: “The ID Co is delivering real value to its clients. The application of Open Banking-based data allows financial providers to personalise their services and streamline and shorten lending processes.”

Atul Kamra, managing partner of SixThirty, said: “The speed at which decisions must be made in our hyper-connected world comes with a growing customer expectation for instant value and service. James and The ID Co team have got a real nice head start here, and are well positioned to take advantage from the regulatory tail winds afforded by open banking...”

Full story via Insider News

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