French Startups Getting Fintechy with It – Linxo Raises 20 Million Euros
French fintech startup Linxo has raised 20 million euros to find a solution to the appalling state of technology implementation in retail banking across France.
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Based in Aix-en-Provence, France, Linxo announced on 7 September that it had raised 20 million euros from Crédit Agricole, Crédit Mutuel Arkéa and MAIF.
Linxo app users can use it to aggregate and view information from multiple bank accounts held with multiple banks on one platform. Thanks to this fund raising, the most important for this French Fintech company, Linxo intends to increase its financial assistance solutions and aims to become the personal financial hub for banking. While maintaining complete commercial independence, the company will continue to make its technology available to its direct users, via its Linxo application, and to its B2B partners such as banks, NBFCs and other retail businesses.
Currently Linxo is No. 1 in France for bank account aggregation solutions with more than 1.4 million people who use its application, with several million users accessing its technology via banks and insurance partners. Fintech now intends to open up its technology to create an open European financial services ecosystem "powered by Linxo", a view facilitated by the European Payments Services Directive 2 (DSP2) January 2018.
For several months now, Fintech has been testing Linxo Connect, a feature enabling users to facilitate the subscription to a financial service by connecting its accounts available on Linxo to third-party services. "Building on the lessons learned over the last few months, we are working to lay the foundations for an open ecosystem based on Linxo API technology (Application Programming Interface). The services that will be powered by Linxo technology will offer real differentiation to their customers by making it drastically easier to use,” says Bruno Van Haetsdaele, cofounder of Linxo.
A reference technology for banks and insurance companies
This 20 million euro fund raise is a continuation of the trust granted by Crédit Mutuel Arkéa and Crédit Agricole, two players already present in Linxo since 2012 and 2015. A new player, MAIF, is a mutual insurer and has already collaborated with Linxo to launch its new digital and mobile service, called Nestor, in 2016.
Thierry Couret, deputy managing director of the MAIF Group said, "This investment is at the crossroads of three strategic dimensions for MAIF: to increase its service offering, digitization, and introduction of new development territories. Moreover, it reinforces the partnership relationship we have with Linxo.”
For Bruno Van Haetsdaele, the confidence of these three key players reinforces a long-term model that is fully in line with Linxo's strategy, "We are the only player in France in which several banks and insurance companies have invested. While giving us the means to remain independent, our shareholders demonstrate the interest of large banks and insurance companies for players who are able to facilitate their digital transformation and bring high value-added technologies to the greatest number. In recent years, business partnerships have been built with Fortuneo, HSBC and MAIF to name only companies that have agreed to make their partnerships public. The open ecosystem powered by Linxo will also be made available to the banking partners who wish it.”
Ronan Le Moal, managing director of Crédit Mutuel Arkéa said, “The new investment of Crédit Mutuel Arkéa is a sign of confidence. We have confidence in Linxo's innovative capacity, notably through its project for increased financial assistance and its ability to develop an ecosystem open to international markets.”
Linxo's objective is to provide its technology wherever users are, whether by their banking tools or directly by Linxo, across France and Europe. "We believe that in 5 to 10 years, you will probably not use more than two financial reference applications everyday; it will be either one of your insurance banks or Linxo or both, but probably no more. Our ambition is to meet the needs of users in all these cases," summarized Bruno Van Haetsdaele.
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