British fintech start-up Bud has secured $20m in a funding round co-led by HSBC and Goldman Sachs.
The London-based company's platform lets banks update their apps to give users access to financial services products from rivals. Banks can also categorize a customer's spending data using Bud's technology to help them find more cost-efficient products.
Bud said that it will use the money to create the world's largest team dedicated to the development of open-banking technology, connecting customers' bank data with third-applications and products.
The investment proves that banks are looking seriously at how open banking can evolve beyond what regulation requires into something that genuinely puts customers first"
Its offering is part of an emerging theme in the world of fintech known as "open banking," which essentially means banks sharing their customer data with third-party providers to enable them to create new financial products.
Open banking paves the way for features such as being able to pay your gas bill directly from your banking app or check your bank balance within Amazon.
Proponents of open banking say that it will increase competition in the industry and benefit consumers, giving them more choice over who they bank with.
"The investment proves that banks are looking seriously at how open banking can evolve beyond what regulation requires into something that genuinely puts customers first," Bud co-founder and chief executive Ed Maslaveckas said.
Raman Bhatia, the head of digital bank at HSBC Retail Banking and Wealth Management, who will be joining Bud's board as part of the investment, said: "[Bud has] helped to shape our approach to open banking, working with us to deliver services that make banking easier for our customers."
Other investors include Banco de Sabadell, Investec and Stanley Fink, former chief executive of hedge fund manager Man Group.