HSBC & Goldman back U.K. Open Banking startup Bud

HSBC Holdings PLC and Goldman Sachs Group Inc. are among the investors in a $20 million funding round for U.K. banking-technology startup Bud.

Bud said on Monday that it will use the money to create the world’s largest team dedicated to the development of Open Banking technology, connecting customers’ bank data with third-party applications and products.

“The investment proves that banks are looking seriously at how open banking can evolve beyond what regulation requires into something that genuinely puts customers first,” Bud cofounder and Chief Executive Ed Maslaveckas said.

Bud said it has ambitions to double its team of 62 within a year. Founded in 2015, the startup signed a deal with HSBC in 2017. Last year, HSBC launched its first product as part of the partnership, an application allowing users to see accounts from different banks and analyze their spending data.

Raman Bhatia, HSBC’s head of digital banking, will be joining Bud’s board as part of the investment. Other investors include Banco de Sabadell S.A. (SAB.MC), Investec Ltd. (INL.JO) and Stanley Fink, former chief executive of hedge fund manager Man Group PLC (EMG.LN).

Source: Bud