Consolidation comes as fintechs face increasing competition from big banks. Tandem, the UK based digital bank, closed a deal to acquire Pariti, also UK based PFM app with 95k registered users. Earlier this year, Tandem had acquired UK incumbent Harrods Bank to get a full banking license.
Digital bank Tandem has agreed to buy fellow British fintech group Pariti, as it looks to head off rising competition from established lenders taking advantage of new legislation that gives them greater access to customer data. New rules that came into force in January allow companies such as Tandem and Pariti to access customer data from other lenders if the individuals give consent. The change is designed to allow alternative providers to offer more tailored financial services, boosting competition in the sector which is currently dominated by a small number of big banks. Pariti aggregates data from across customers’ different bank accounts and credit cards, and offers free savings tools as well as loans provided through partnerships with peer to peer lenders like Zopa.