Tandem, the United Kingdom's challenger bank co-founded by Ricky Knox, fintech veteran, continues to make purchases. Following the acquisition of Harrods Bank, the banking branch of the famous British luxury department store, the company acquires Pariti, a money management application that has attracted 95,000 users.
The terms of the agreement are not disclosed, although I am told that the CEO of Pariti Matthew Ford and the chief technology officer Peter Townsend join Tandem . They will be bridging their account aggregation expertise with the Tandem app team, so that there is more than a breath of acquiring of this acquisition. Pariti investors include Index Ventures and JamJar Investments.
Founded in 2014 by Ford, who was previously responsible for the acquisition of OnTrees, a personal finance application that came out of MoneySuperMarket, Pariti was billed as a mobile app connected to your existing bank accounts to help you monitor your expenses .
This included tracking the amount you pay to pay off existing debt, such as overdrafts or credit cards, and suggesting changes you could make to pay off that debt faster. In order to offer more fair credit rates, Pariti has also had integrations with Zopa and Lendable loans.
However, at a call this morning, Ford explained that Pariti had always intended to develop other smart financial products, and not just to associate with them. best third party providers, to help consumers save money and avoid paying. too much for their debt.
It is thought that a financial control center powered by account aggregation gives access to a lot of valuable data and that part of that value can be captured and returned to customers under the form of more bespoke and innovative products that fit better lifestyle, consumer habits and credit profile. But to do this in the most meaningful and ambitious way, you need to have greater control over the design and delivery of these products.
In other words, depending on the product category, the integration of third parties (or, dare I say, the market bank) can only help you until now. And it is there that intervenes the acquisition of Pariti by Tandem.
The challenger bank has a full banking license (that is, it can do the balance sheet), offers its own account aggregation application and has recently launched its first customized financial product in the form of a generous cash-back credit card.
Although coming from two different regulatory angles – Pariti did not have a banking license and Ford told me once that he had no intention of doing balance sheet loans – both companies were on a similar mission, so the acquisition really looks like good fit.
It's also fun to see the Pariti duo partner with a bona fide challenger bank. The start-up was associated with HSBC to feed the "SmartSave" application of the bank in place, which allowed customers to automatically save their reserve currency in their savings account. HSBC. However, despite an apparently successful trial of enforcement, the partnership with HSBC has not continued.