✅ Visa To Buy Swedish Fintech Tink For $2.2 Billion
Our first digest takes a look at an acquisition made by Visa as the firm tries to strengthen its position in the fintech space. Visa has agreed to a $2.2 billion takeover of European open baking platform Tink. This news comes only months after it ditched a planned acquisition of the startup’s US rival, Plaid. Founded in 2012, Sweden-based Tink enables banks and other financial firms to share and access consumer financial data more easily. As we speak, the platform is already being used by more than 3,400 banks and other institutions, as well as over 250 million customers in Europe. Visa was going to invest in a similar platform, Plaid – which is based in the US, but terminated the $5.3 billion deal. The reason for the termination was apparently a US government lawsuit aimed at blocking the deal on antitrust grounds. On the other hand, European Union rules on open banking require banks to allow access to customer data by registered third party providers to boost competition. It is worth mentioning though, that some fintech experts said the Tink acquisition could face similar antitrust concerns. Simon Taylor, head of ventures and co-founded at fintech consultancy 11:FS commented on the issue. Taylor said Europe is a very different open baking market to the USA, but concerns similar to that of Plaid in the US may apply to Tink, being a major player. If the deal is completed, it will be very big for the nation of Sweden. At least in the realm of fintech, the country is shaping up to become Europe’s biggest hub for M&A exits.
✅ Wealth Management Player D1g1t Raises C$16m
In our next digest we take a look at how d1g1t Inc. has closed a new fundraising round worth $16 million CAD. The round was led by returning d1g1t investor CI Financial Corp, with the inclusion of two new investors, NAventures and MissionOG. From the funds it has secured, d1g1t will expand the capabilities of its platform, advance product innovation, scale operations and add to its sales and marketing teams. All of these improvements will be centered on one goal, cementing its presence in the US wealth management market. Dr. Dan Rosen, the company’s founder and CEO, says that they are humbled and delighted to have attracted these investments. Moreover, Dr. Rosen says that the confidence the firms have placed in them validates their unique value proposition. The announcement comes as the company continues to experience explosive growth, doubling its revenues in 2020 despite the pandemic. Darie Urbanky, the COO of CI Financial, one of the platform’s investors, praises the sophistication and scalability of d1g1t’s platform.
He adds that this sophistication and scalability is strong enabler of the firm’s growth strategy in Canada and the RIA market in the US. In addition to that, Philippe Daoust, the managing director of NAventures said d1g1t’s technology is nothing short of transformational. He continues by saying they have seen a strong demand in the industry for this type of solution. Finally, MissionOG’s managing partner Andy Newcomb noted that they are particularly impressed with d1g1t’s team and market approach. He says the firm is excited to support the company’s growth — as they further expand into the United States. There is a lesson to be learned from d1g1t’s success. If companies are bold enough to innovate, ample funding will always come.