Open banking API platform LUXHUB has raised €7.4m

Open banking API platform LUXHUB has received €7.4m in an internal funding round led by its founder banks Banque Raiffeisen, BGL BNP Paribas, POST Luxembourg, and SPUERKEESS to help with the companies European expansion plans.

Based out of Luxembourg and founded in 2018, open banking API platform LUXHUB has quickly positioned themselves as a leading European Open Banking API platform who connect their customers to Fintechs and financial institutions through ‘powerful, robust, and secure API connectivity’.

Speaking on the funding round, Jacques Pütz, CEO, LUXHUB said: “LUXHUB has rapidly emerged as a leader within Luxembourg’s new Open Banking ecosystem. But our ambitions have always been to have a strong Europe-wide presence, and it’s our progress in this respect that has been most impressive.”

Claude Meurisse, COO, LUXHUB explained the successful funding round went through due to their PSD2 compliance: “The new investment comes largely as a result of the operational and technological success we have had with regards PSD2 compliance,”

LUXHUB’s funding comes at a time where FinTechs are aggressively seeking new funding and are successfully getting it with Revolut raising $500m at the end of February and Previse raising $11m in early April.

Since the companies inception, LUXHUB has helped close to 40 financial institutions meet PSD2 compliance through their APIs that simplify the interconnection between different parties.

LUXHUB have seen their team grow from a team of four in 2018 to more than 30 coming up to the midway point for 2020.

Meurisse continued: “… 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.”

The funding round will allow LUXHUB to continue its growth across Europe and also provide more available resources and capital for R&D on their suite of banking and open finance products and services.

Pütz gave a more detailed comment on the growth LUXHUB is experiencing: “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.”