Latvia’s free open banking and data insights API Nordigen has raised €2.1 million in a funding round that saw participation from EstVCA member Superangel as well as Black Pearls VC, Inventure, Highgoal Capital, ID4 Ventures, Calchas Holding, and Angel Investors Artis Kehris, Henry Nilert, Gerri Kodres, and Riivo Anton.
Founded in 2016 by Roberts Bernans and Rolands Mesters, Nordigen is a free open banking API that provides PSD2 data connections to all major European banks. These connections are a fundamental ingredient, and used by, just about every bank, lender, and fintech. And while not the only firm on the block providing this service, the differentiator here is that Nordigen offers it for free.
“It's time to wipe out screen scraping in Europe. It's expensive and hacky. Banks have built amazing APIs to let people migrate their account information securely and without friction. Nordigen allows developers to connect to these bank APIs for free,” says Mesters.
So if Nordigen is just giving the service away, one that is free under European banking laws, but still charged by industry players including Tink, what’s the business model?
Photo credit: Nordigen; https://unsplash.com/@flo_