French banking company Crédit Agricole has agreed to acquire a majority stake in fintech firm Linxo Group. Founded in 2010, Linxo Group is one of the major players in bank data aggregation and payment initiation in France. The fintech company offers application programme interface (API) ‘bricks’ and complete white label apps for banking and insurance start-ups.
After the deal is closed, Crédit Agricole Group will own more than 85% of the stake in Linxo. The remaining stake will be held by directors and founders of Linxo, who will also be involved in its further development.
Linxo Group has been a long-standing partner of Crédit Agricole, offering its account aggregation solution through their banking apps that include Crédit Agricole – Ma Banque, LCL – Mes Comptes, and others.
Linxo will also leverage Crédit Agricole’s position as a European banking major to continue its growth and to expand its development in the banking sector.
Crédit Agricole and Linxo combination to create opportunities in new digital services
Furthermore, the combination of the bank’s know-how and Linxo’s technological prowess could create opportunities in new digital services based on financial data for Crédit Agricole’s customers in the retail, professional, corporate sectors.
Crédit Agricole Payment Services CEO Bertrand Chevallier said: “the acquisition of this major banking aggregation player in France, a long-time partner of the Crédit Agricole Group, is an important part of our strategic aim of offering customers of the Group’s banks innovative payment services that meet the highest market standards.
“Moreover, it represents a major contribution in terms of technology that will enable the Group to take full advantage of the innovation opportunities offered by changes in regulations.”
Pending approval from French Prudential Supervisory and Resolution Authority (ACPR), the regulatory authority in France, the deal is expected to help the banking company to strengthen its position in digital payment services space.
Linxo Group president Bruno Van Haetsdaele said: “This transaction enables us to accelerate and strengthen our services for the Crédit Agricole Group, while giving us the opportunity to develop our offering in France and internationally for our clients and prospects with Oxlin, our ACPR-authorised payment institution, and to continue the development of Linxo, one of France’s most popular personal financial management apps.”
In December last year, Crédit Agricole and Santander completed the previously announced merger of CACEIS and Santander Securities Services (S3).
The deal has merged two strong players in custody and asset services in Europe and around the world.