General Observations

• Open banking technology platforms exhibit double and triple-digit revenue growth (figure 1)
• These platforms showcase triple-digit revenue multiples: Truelayer, Railsbank and Tink have valuations of more than 100x revenue (figure 2)
• High M&A and funding activity drives growth and valuation, and the cards schemes are also in the game (figure 2)
• Data aggregation and payments are the most common use cases, followed by personal finance, credit scoring, and business management (figure 3)
• Open banking platform services largely address banks and select verticals such as iGaming, insurance, and property management today. Payments and credit scoring are the most applied services across many verticals (figure 4)
  

What's Next?

• Open banking technology platform providers currently target banks, but will increase their focus on vertical-specialized use cases
• Penetration of payments via open banking in online commerce (i.e. pay for goods and services initiated directly via end user’s bank account) is likely to increase
• Platform providers will extend their geographic reach and develop services that are interoperable across multiple countries and continents
• M&A activity will continue, leading to further consolidation and sustaining high revenue multiples
  

INFOGRAPHIC: Open Banking Tech Platforms

Please do not hesitate to contact Anupam Majumdar Anupam@FlagshipAP.com, Pedro Giesta Pedro@FlagshipAP.com or Elisabeth Magnor Elisabeth@FlagshipAP.com with comments or questions.