German Fintech Firm figo Secures Over $7m in Funding from Deutsche Börse

The German Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term sector is starting to flex its muscles, with the Hamburg-based startup figo securing almost $7.2 million (€6.8 million) in Series B financing, with additional investments coming from DB1 Ventures, the Corporate Venture Capital arm of Deutsche Börse Group.

figo is a provider of comprehensive fintech solutions and services to help support firms overall Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term Services Directive strategies (PSD2), which will dramatically impact multilateral interchange fees (MIFs). figo has strategically placed itself at a key point in the payments realm, helping build a new banking infrastructure in a world hamstrung by open APIs.

Presently, PSD2 is one of the key instigators of a global move to help open up banking, which is slowly forcing traditional banks’ hands in offering heightened access to account information in order to better facilitate innovative payment initiation and account aggregation services.

Legacy Challenges

The propensity of legacy IT challenges faced by many banks across Europe, seems to also illustrate a demand for technological solutions such as figo’s Banking API and other solutions with regard to PSD2. DB1 Ventures, the Corporate Venture Capital arm of Deutsche Börse, has handed over a seven-figure sum to secure a ‘significant’ minority stake.

Deutsche Börse’s investment constitutes an endorsement of PSD2’s implementation – according to DB1 Ventures’ MD and Head of Venture Portfolio Management, Ankur Kamalia, in a statement on the investment: "In a changing financial landscape, figo has established itself as a reliable partner and has built up a fantastic fintech ecosystem around itself. We look forward to supporting their growth and also learning from the innovation they are driving.”