Crossfin Ventures, a South African venture capital company providing pre-seed funding to promising, scalable, FinTech startups, has announced that it has invested in Fintech startup, truID. truID leverages banking customers data to allow financial services institutions and other Fintech startups to build solutions from it.

truID has what they call a Connect API which provides financial institutions, such as banks, with secure access to consumer banking data. Their model is said to be consent-driven and it is in compliance with South Africa's Protection of Personal Information Act. As such, consumers can opt-in to truID amd then securely share their bank statements, transaction history and other relevant information with third-party providers, who in turn can develop a range of value-adding services and products.

โ€œThe companyโ€™s simple and secure API brings convenience to consumers while helping financial institutions retain customers through improved application processing. Their vision for enabling consumers to take control over their banking information creates immense opportunities for fintech innovation. There are also exciting synergies with some of our other portfolio companies which we hope to explore over the coming months," said Anton Gaylard, COO at Crossfin.

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What is Open Banking?

Open Banking is a set of standards that give consumers control over their banking identity and data. An example is the PSD2 standards that have been signed into legislation in the European Union.

Beyond that, it presents many technology startups with the opportunity to build value added services on top of what banks already offer by leveraging the customer data. What is great is that it is all permission-based as far as the customer is concerned.

โ€œThe idea is to give consumers the power to share their banking information with qualified third parties of their own choice, who then develop products and services that add value and convenience to their lives,โ€ says Drabkin. โ€œThe model has already shown immense success in the European Union, where it has been officially instituted by local regulators. It is the next evolution of financial services," said Dmitry Drabkin, co-Founder of truID.

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Funding will be used to scale truID operations

The South African Fintech startup has indicated that it is looking to use the funding received from Crossfin Ventures to scale its operations and look for synergies. Considering Crossfin's portfolio of financial services companies, this shouldn't prove difficult.

truID currently works with South African financial services providers to digitize and optimize their internal processes.

โ€œSouth Africa sees 3.2 million credit applications per month, each one requiring three monthsโ€™ bank statements and account verification. Our first objective is to expand our services to a greater audience of these affected applicants who often lose valuable time and money sourcing the required paperwork.โ€

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