German banking-as-a-service supplier finreach and banking API compatriot figo are to merge their operations to create a one-size fits all suite of products for companies entering the financial services space.
With locations in Hamburg and Berlin, the two companies are awaiting approval from German financial regulator BaFin for the tie up, which is being funded by a seven-figure investment from finreach parent, venture builder FinLeap.
Finreach appointed a new CEO in July last year - Markus Dränert from Haufe-Lexware - as part of a plan to reposition the company into the platform-as-a-service space within consumer markets. Founded in 2012, figo has received backing from Deutsche Bourse's venture unit and operates in the open banking and license-as-a-Service fields.
Commenting on the plans for consolidation, Dränert states: "We are responding to the growing market need for specific applications that go beyond data connectivity. Our goal is to become the leading fintech platform that delivers high quality SaaS applications and API solutions - pan-European and PSD2-licensed.
"Our core target group are companies of various industries that have a broad consumer customer base and are offering innovative financial solutions, or prospects that intend to offer financial services in the near future. Our API services bring significant added value to the product offerings of our partners, and with them, a stronger relationship to their customers."
Dränert will helm the merged entity, while figo chief André Bajorat will join the supervisory board of the new company.
Both company locations in Berlin and Hamburg will be maintained, as well as the respective teams, comprising 90 staff in total.