Open banking platforms are set to change the shape of financial services completely.
The platform is poised to transform not only how banks work but how and even why consumers and businesses choose their services, thus accelerating innovation in the services.
According to many experts, packaged API solutions are the way forward for any financial institution seeking to take the open banking path.
Based out of London, Yapily provides the infrastructure layer that aims to power the next wave of financial innovation through Open Banking.
Recently, the UK company raised a $51M (approx €43.3M) Series B funding round (second closing subject to regulatory approvals), taking its total investment to date to $69M (approx €58.6M).
The investment is led by Sapphire Ventures along with the participation of existing investors including, Lakestar, HV Capital, and Latitude.
The Series B funding round comes an year after raising $13 million (approx €12 million) in Series A funding from Lakestar.
Sapphire Ventures is a venture capital firm that partners with visionary teams and venture funds to build companies of consequence.
In an exclusive conversation with Silicon Canals, Stefano Vaccino, founder of Yapily says, “We will expand into new markets including France and Spain while continuing to invest in existing markets (UK, Italy, and Germany) where we have already established a strong presence with a rapidly increasing customer base. With more frameworks coming into effect around the globe, we plan to monitor and enter regulatory-led markets next year.”
Further, Yapily will also use the funding to invest in products and people in the upcoming months. Right now, the company employs around 100 people in the London office.
He adds, “We plan to grow the company significantly, especially to our engineering, product, and customer success teams. We aim to double the size of the engineering team by the end of the year. We already have an established presence in Italy and Germany, and we will be hiring team members in France and Spain to support our ambitious expansion plans.”
How was Yapily born?
For many years, financial institutions have built a barrier around consumer data, and the way money moves globally. Founded by Stefano Vaccino, Yapily connects to thousands of banks using a secure open API, removing the complexity and enabling seamless access to financial information and payment infrastructure..
Vaccino shares, “Before founding Yapily, Stefano was a trader on the floor of Goldman Sachs during the 2008 financial crash. He experienced first-hand what can happen when the financial system is closed and unjust. Fast forward to 2017, and after attending an Open Banking seminar, he founded Yapily on the simple yet firm belief that open data access is the answer to creating transparency that will lead to fairer financial services for everyone.”
This includes improving customers’ payment experiences while saving money on payment fees; securely accessing balances, identity, and transaction data; and streamlining account and digital wallet top-ups with instant payments.
In terms of business model, Vaccino, shares, “Our business model is on a consumption basis – customers pay for how much they use our open banking infrastructure. We also have several tools including data enrichment and monitoring, so our clients can maximise the value of open banking data.”
Europe is leading the world in open finance, and consumers and businesses will start to see more innovation from industries such as mortgages, pensions, and insurance, with easier access to financial data and payments infrastructure.
Since the launch of PSD2 in 2018, open banking adoption has increased significantly. According to the OBIE, nearly 3M UK adults now use open banking services. Over the last three years, API volumes have increased 850x, with more than 7 billion between 2018 and 2020.
“It hasn’t been the easiest journey though – open banking used to be the best-kept secret and the market is still fragmented across Europe. As a company born out of the PSD2 regulation, we are API-first and only, and we have worked hard to develop the infrastructure and tools that will enable the next wave of innovation and create financial inclusion for all. We have worked very closely with regulators across Europe to help shape the regulatory landscape to support the continued growth of open banking adoption and the wider ecosystem,” says Vaccino.
3.5x customer growth
During the pandemic, the company has witnessed a 3.5x customer growth as global commerce rapidly shifted towards online shopping.
Vaccino shares, “Covid-19 has accelerated digitisation of services with industries like payments and lending, accounting services moving 5-10x ahead in a matter of 18 months.”
Headquartered in London, Yapily provides infrastructure for industry leaders including American Express, Intuit Quickbooks, Moneyfarm, Volt, Vivid, and BUX.