Luxembourg-based open banking startup LuxHub has raked in €7.4m ($8.07m) additional capital in internal funding round.
The funding came from its founding banks, Banque Raiffeisen, BGL BNP Paribas, Post Luxembourg and Spuerkeess.
The latest capital raise will help the open banking fintech firm to boost its business in the European markets.
The company will use the funding to fast-track the development of its proprietary open banking and open finance products.
LuxHub CEO Jacques Pütz said: “We’re currently in a uniquely accelerated period of digital transformation, and LUXHUB is uniquely positioned to play a key role in this when it comes to financial institutions.
“We have the firm commitment of our four founding shareholders, alongside a deep-rooted philosophical core of innovation and collaboration.”
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By GlobalDataThe open banking sector, which emerged at the end of 2015, has adopted the revised Payment Services Directive (PSD2) introduced by the European Union.
The PSD2 allows users to gain control over their financial data and creates a secure playground for tech innovation within financial services.
Founded in 2018, LuxHub currently employs over 30 people and has successfully delivered PSD2 compliance to almost 40 financial institutions.
LuxHub COO Claude Meurisse explained: “The new investment comes largely as a result of the operational and technological success we have had with regards PSD2 compliance.
“But, on top of this, it’s the opportunities we have created, and are creating, for a broad range of financial institutions beyond compliance that provides real enthusiasm about our future outlook.”