UK’s financial technology company Bud has raised $20 million in funding from a number of companies including Goldman Sachs and HSBC. The company provides services to connect banks’ data to other financial service providers and fintech companies.
The Series A round of funding involves bigwigs in banking and financial services which include First Direct (HSBC Bank), Goldman Sachs, Investec’s INVC Fund, Banco Sabadell’s corporate venture wing InnoCells and ANZ. Other participators include 9 Yards Capital and Lord Fink.
The company launched in 2016 provides integrated banking services to banks by using open banking API’s and AI tools. The Open banking era has necessitated companies to integrate their services to other banks and financial service providers. Bud’s technology enables app developers create new apps to remain competitive by managing all banking and financial services within a single app. Bud essentially provides technology solutions to connect bank account data to other fintechs and financial services providers and also uses bank data to create new consumer experiences.
Bud’s co-founder and CTO George Dunning said that their association with First Direct has allowed them to create new data enrichment features which uses transactional data to make financial transactions easier. He added that they have worked to increase financial literacy among people. A feature called ‘Smart Balance’ shows users what they can spend safely and also allows management of goals to plan ahead. They also offer a regular and advanced payment finder which tracks and filters bill payments. If users want to save money, Bud connects them to appropriate service providers.
Bud’s also enables predictions about customers behavior and patterns to effectively provide services for example if someone is going abroad on a trip, they can be offered travel insurance by using app instead of randomly calling people for offering travel insurance.
The bank has integrated with 80 fintech partners with 15 different service categories form insurance to rewards to credit cards. Other than First Direct owned by HSBC, the company offers its services to a number of companies including fintechs like PensionBee and Wealthify, AJ Bell and Hiscox.
The new round of funding will help company to expand its current headcount of 62. The company stated that the expanded team will be the largest in the world dedicated to open banking. The company refused to reveal the names of its clients and partners, however Bud CTO Mr. Dunning did reveal the company’s association with the UK government’s treasury department through rent recognition challenge.