Konsentus, which provides SaaS solutions to help financial institutions comply with PSD2, has closed a pre-Series A financing round.
The value of the round was not disclosed but it was a ‘multi-million-pound’ deal. Mastercard led the investment, with participation also coming from a selection of unnamed backers.
Having closed the round, funds will be used to support Konsentus’ growth plans which includes international expansion and new services launches to support PSD2.
UK-headquartered Konsentus provides financial institutions with identity and regulatory checking services to aid their PSD2 and open banking compliance processes. The SaaS-based platform provides real-time validation of TPPs and every time one requests access to a financial institution, Konsentus checks its regulated status and advises the FI.
Konsentus CEO Mike Woods said, “The RegTech market is growing at 45%+ per annum and with 9,000+ Financial Institutions in Europe that must deliver PSD2 open banking, the demand for the Konsentus service is significant and this investment will support an accelerated growth plan across Europe.
“With plans to launch new related services later in 2019 and international expansion in due course, we will be pursuing a Series A financing round in late 2019.”
This investment from Mastercard furthers the existing partnership between the two. Earlier in the year, Konsentus partnered with Mastercard to give the card issuer tools for third-party provider (TPP) identity and regulatory checking services.
The tools ensure financial institutions using Mastercard can meet PSD2 compliance and ensure the TPPs requesting customer data are legitimate.
Mastercard SVP of Open Banking Jim Wadsworth said, “We see significant potential for the Konsentus service as Open Banking evolves both in Europe and globally. Through its targeted investments in payment technology, Mastercard continues to provide real value in the way it delivers new solutions to its customers and end-users.”
Earlier in the year, Konsentus established a strategic partnership with Neonomics. Through the agreement, clients of Neonomics, an inter-bank solution helping banks and third-party providers work together for account aggregation, can access Konsentus to ensure PSD2 compliance and guard their transaction account customers from unregulated and unauthorised third-parties.
Konsentus’ full profile below:
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