obconnect Company Profile

Background

Overview

obconnect is a leading global provider specializing in Open Banking and Confirmation of Payee (CoP) solutions. Established in 2019, the company has rapidly become an industry expert, leveraging its expertise dating back to Open Banking's inception in 2017. obconnect's mission is to deliver exceptional solutions to financial institutions and corporate banks, aiming to revolutionize the Open Banking landscape and empower these entities to thrive in the digital era.

Mission and Vision

The company's mission is straightforward: to provide industry-leading technology solutions in Open Banking and Confirmation of Payee across the globe. With a tech-first approach, obconnect offers secure, cloud-native, and real-time API-driven solutions, ensuring continuous availability without scheduled downtime. Their vision is to remove barriers and provide fair and accelerated access to Open Banking solutions, regardless of organization size, thereby promoting financial inclusion and innovation.

Industry Significance

obconnect plays a pivotal role in the financial technology sector by offering comprehensive Open Banking solutions that enhance payment security and efficiency. Their services, particularly in Confirmation of Payee, are crucial in reducing fraud and improving the payments experience for consumers and businesses alike. The company's innovative approach has positioned it as a key player in the rapidly evolving Open Banking ecosystem.

Key Strategic Focus

Core Objectives

obconnect aims to deliver seamless end-to-end processing through its cloud-native and API-driven approach. The company focuses on providing scalable and resilient infrastructure that maintains continuous availability across all its Open Banking and Ecosystem products. A significant objective is to support Open Banking Financial-grade API (FAPI) compliance, ensuring security and functional compliance in all its solutions.

Areas of Specialization

The company specializes in:

Open Banking Solutions: Offering a range of services that cover every aspect of Open Banking, simplifying complex processes, driving operational efficiency, and enhancing user experience.

Confirmation of Payee (CoP): Implementing CoP to cross-check recipient names during payments, thereby enhancing security and reducing fraud risks.

Bank Compliance Architecture: Providing the necessary technology for banks to expose data and initiate third-party payments.

TPP Software for Corporates: Delivering technology to service corporate customers via pay-by-bank, linking accounts and transaction access.

Key Technologies Utilized

obconnect employs a modern technology stack that is API-driven both internally and externally. The company leverages robust cloud platforms to address challenges posed by on-premise, legacy-based systems, such as backups, disaster recovery, release management, and incident management fixes. This approach ensures reliability, scalability, and advanced security measures, enabling the company to deliver exceptional user experiences and stay ahead of the competition.

Primary Markets and Conditions Targeted

obconnect primarily targets financial institutions, corporate banks, and fintech companies seeking to implement Open Banking and Confirmation of Payee solutions. The company's services are designed to meet the needs of organizations aiming to enhance payment security, improve operational efficiency, and comply with regulatory standards in the evolving financial landscape.

Financials and Funding

Funding History

obconnect has attracted significant investment to support its growth and technological advancements:

July 2022: PayPoint Plc made a £3 million investment in obconnect, marking the beginning of a strategic partnership aimed at enhancing PayPoint's digital payments offering by adding Open Banking services.

August 2024: PayPoint increased its stake to 59.3% by investing an additional £10.5 million in obconnect. This strategic investment was intended to further leverage obconnect's Open Banking technology platform and unlock greater opportunities within both businesses.

October 2024: PayPoint completed its investment in obconnect, holding a 55.3% position in the business. This investment enabled the group to further leverage their Open Banking technology platform and unlock greater opportunities within both businesses.

Utilization of Capital

The capital raised has been utilized to:

Enhance Technological Capabilities: Develop and deploy advanced Open Banking and Confirmation of Payee solutions.

Expand Market Reach: Secure contracts with major financial institutions and payment organizations.

Support Global Expansion: Implement services in new markets, such as the Confirmation of Payee ecosystem in New Zealand.

Pipeline Development

Key Pipeline Candidates

obconnect has developed a robust pipeline of services and partnerships:

Confirmation of Payee Ecosystem in New Zealand: In October 2024, obconnect secured the contract to deliver the Confirmation of Payee ecosystem in New Zealand, partnering with the New Zealand Banking Association (NZBA). The contract commenced in November 2024, providing services to major banks in New Zealand, including ANZ, ASB, Bank of China, BNZ, CCB, The Co-operative Bank, Heartland Bank, ICBC, Kiwibank, Rabobank, SBS Bank, TSB, and Westpac.

Open Banking Services Expansion: The company has expanded its Open Banking services to over 28 clients, including BBC and Crown Commercial Service for Confirmation of Payee, demonstrating significant growth in this sector.

Stages of Development

The Confirmation of Payee ecosystem in New Zealand is in the implementation phase, with services already live as of November 2024. The Open Banking services expansion is ongoing, with continuous onboarding of new clients and enhancement of existing services.

Target Conditions

The primary focus is on enhancing payment security and reducing fraud risks through the implementation of Confirmation of Payee services. Additionally, obconnect aims to streamline payment processes and improve operational efficiency for financial institutions and corporate banks through its Open Banking solutions.

Anticipated Milestones

Key milestones include:

Confirmation of Payee Ecosystem in New Zealand: Achieving full deployment across all major banks and ensuring seamless integration and operation of the ecosystem.

Open Banking Services Expansion: Onboarding additional clients and expanding service offerings to meet the evolving needs of the financial sector.

Technological Platform and Innovation

Proprietary Technologies

obconnect's proprietary technologies include:

Cloud-Native and API-Driven Solutions: Ensuring real-time and efficient operations with scalable and resilient infrastructure.

Open Banking Financial-Grade API (FAPI) Compliance: Prioritizing security and functional compliance in all solutions.

Advanced CoP Matching Logic: Enhancing the accuracy and reliability of Confirmation of Payee services.

Significant Scientific Methods

The company employs advanced algorithms and data analytics to support its Open Banking and Confirmation of Payee services, ensuring high levels of security and efficiency.

AI-Driven Capabilities

While specific AI-driven capabilities are not detailed, obconnect's focus on advanced data analytics and real-time processing suggests the integration of AI methodologies to enhance service delivery and operational efficiency.

Leadership Team

Key Executives

Darran Morford: CEO and Co-Founder of obconnect. With over 30 years of experience in financial systems and payment processing, Darran is responsible for delivering large-scale global and market projects, with specific expertise in global interoperability, payment systems, Open Banking, and Open Data delivery.

Rui Engana: CTO and Co-Founder of obconnect. With over 20 years of experience in IT strategy, security, and API management, Rui has led high-performance professional services teams to deliver strategic enterprise solutions across Fortune 500 organizations, advising, architecting, and engineering scalable Open Banking solutions to large financial services groups.

Simon Lyons: CSO of obconnect. With over 30 years in banking and a reputation as "The Open Banking Guru," Simon brings vast expertise to the Open Banking landscape. He has led diverse projects from all angles, starting with digital connectivity at The Co-operative Bank, handling e-banking, data transfer, PCard, and payment schemes.

Leadership Changes

As of the latest available information, there have been no significant changes or appointments within obconnect's leadership team.

obconnect