Tandem, the U.Okay. challenger financial institution co-founded by fintech veteran Ricky Knox, continues to be on a procuring spree. Following the acquisition of Harrods Financial institution, the banking arm of the well-known luxurious British division retailer, the corporate is buying Pariti, a cash administration app that has garnered 95,000 customers.
Phrases of the deal stay undisclosed, though I’m instructed that Pariti CEO Matthew Ford and CTO Peter Townsend are becoming a member of Tandem. They’ll be brining their account aggregation experience to the Tandem app group, so in that sense there’s greater than a whiff of acqui-hire to this acquisition. Pariti’s traders embody Index Ventures, and JamJar Investments.
Based in 2014 by Ford, who was beforehand head of acquisitions for OnTrees, a private finance app that exited to MoneySuperMarket, Pariti was billed as a cellular app that plugged into your present financial institution accounts that will help you keep watch over your spending.
This included monitoring how a lot you might be paying out servicing present debt, comparable to overdrafts or bank cards, and suggesting modifications you might make to repay that debt extra shortly. In a bid to supply fairer charges of credit score, Pariti additionally had integrations with lending fintechs Zopa and Lendable.
Nevertheless, in a name this morning, Ford defined that Pariti had all the time meant on growing further good monetary merchandise of its personal, not merely partnering with best-in-class third celebration suppliers, with the intention to assist shoppers save and keep away from paying an excessive amount of for his or her debt.
The pondering goes monetary management centre powered by account aggregation supplies entry to plenty of helpful information, and that a few of that worth might be captured and returned to prospects within the type of extra bespoke and revolutionary merchandise that higher match their life-style, spending habits and credit score profile. However to do that is in probably the most significant and impressive manner, it is advisable to have better management over the design and supply of these merchandise.
In different phrases, relying on product class, third-party integration (or, dare I say, market banking) can solely get you thus far. And that’s the place Tandem’s acquisition of Pariti comes into focus.
The challenger financial institution has a full banking license (which means that it may possibly do steadiness sheet lending), affords its personal account aggregation app, and lately launched its first bespoke monetary product within the type of a travel-friendly and beneficiant cash-back bank card.
Though coming from two totally different regulatory angles — Pariti didn’t have a banking license and Ford as soon as instructed me he had no intention of doing steadiness sheet lending — the 2 corporations have been on an analogous mission, so the acquisition genuinely appears to be like like a very good match.
It’s additionally enjoyable to see the Pariti duo be part of forces with a bonafide challenger financial institution. The startup had partnered with HSBC to energy the incumbent financial institution’s ‘SmartSave’ app, which helped prospects to robotically save their spare turn into their HSBC financial savings account. Nevertheless, regardless of a reportedly profitable trial of the app, the partnership with HSBC didn’t proceed any additional.