ANZ is now working with a UK open banking platform
The bank took part in a Series A funding round for the platform along with HSBC and Goldman Sachs.
ANZ has invested an undisclosed amount in a UK fintech platform that offers financial institutions and companies a way to take part in open banking. Bud's platform acts as an additional layer of technology that increases the functionality of new or existing apps. Through APIs, Bud is essentially offering a way for banks to securely connect to fintechs through existing bank apps. If its Series A funding round is anything to go by, the banks are on board.
Bud raised $20 million from a number of high-profile financial institutions globally with the round co-led by HSBC and Goldman Sachs. Other financial institutions that took part in the Series A funding include ANZ, South Africa's Investec and Spain's Banco Sabadell.
"ANZ is pleased to be working with Bud and its open banking technology as we look to provide our customers with the best digital banking experience," said an ANZ spokesperson.
Open banking, the first iteration of Australia's Consumer Data Right which will see consumers able to direct their financial data to be shared between authorised companies, will start in Australia by 1 February 2020.
The investment is one of many steps ANZ has taken to prepare for Australia's new open banking environment. In February 2018 ANZ announced a strategic investment and partnership with startup Data Republic. Data Republic's platform offers a way for institutions to securely store and share data and will allow ANZ to participate in the open banking regime.
Bud's co-founder and chief executive Ed Maslaveckas told CNBC the sector has seen a shift to a marketplace baking model.
"The market dynamic is such that open banking is a much bigger change for banks than I think people realise," he said. "Open banking essentially allows the customer to get their banking data and make payments from any app or service of their choosing."
Bud currently operates out of a UK office where open banking has been in operation since January 2018. Maslaveckas confirmed to CNBC that international expansion was part of Bud's strategy but the company would not be making any major moves until the end of this year.
- Australia and New Zealand might collaborate on open banking
- SocietyOne: Peer-to-peer lending offers a “better deal than the bank”
- Separating fintech from finance: Why we have fintech influencers
- Government maintains R&D eligibility, offers more clarity on claiming
- Raiz Invest to introduce machine-learning technology to its platform