Supporting development and ensuring investors confidence
Completion of a due diligence on a fintech by a pension fund, prior to raising funds to ensure the European development of this banking aggregation API.
The aim of our support was to carry out a due diligence on a PSP providing a banking aggregation API, at the request of an investment fund with the intention of acquiring a stake in its share capital.
The analysis work was to be carried out on the offer proposed by this PSP, the associated products and services and the technology used to provide them.<br>All of this was to be put into perspective with a benchmark of the payment services ecosystem in the same geographical area and in particular the competitive landscape of this market.
The perfect match
Analysis of the proposed offer, products, services and technology used by the target
Assessment of the maturity and commercial & technical skills of the target
And concretely?
Compliance
of the deadlines for the completion of the work
Analysis
of relevant key elements
Decision
informed and controlled
Our methodology
Evaluate the maturity and the commercial and technical skills of the target via interviews with key contacts of the target, an analysis of the relevant internal and external documentation, completed by our experience acquired on similar missions.
Analysis of the offer, the product and the associated services
In order to provide an accurate picture of the target, we collected, consolidated and analysed data on the relevant components, including the AIS/PIS licensing and distribution model; the coverage of the Open Banking use cases; and product functionalities (including product complexity and data flows).
Analysis of the technology used by the target
We have analysed and assessed the maturity of the technology used by the target to provide its Open banking services: Scraping, API and Reverse engineering and in particular the target's ability to retrieve data, to ensure connectivity to third party PSPs and to anticipate the evolution of technologies.
Benchmarking of the target's major competitors
In order to situate the target in the payments ecosystem and more particularly in French Open Banking, we carried out a benchmark by studying in particular the coverage of the main players in the market similar to the target, their service offers and the technologies they use.
Support for decision-making
By contributing to the comprehensive analysis of the target and the identification of the risks and opportunities of this transaction, our client was able to make an informed and controlled investment decision.
Crossed views
Our ability to develop an analysis of the strength of this target, to assess its positioning and relevance in its market helped to build trust between our client and the target. Indeed, the target particularly appreciated our ability to create an "equal to equal" exchange without them having to "explain" their business model and its technical underpinnings to us.
Thierry Leblond
Head of Payment Advisory | Oaklen Consulting
Deciding to invest in the target PSP in an informed manner required our client, in addition to having an analysis of the commercial and operational robustness of this target, to evaluate its positioning and relevance in an already busy French PSP market. The quality of our work enabled him to make a positive decision to enter the capital and trust a French Fintech, we are proud to have contributed to this.
