NextGen.Net acquires open banking pioneer

by Madison Utley07 Jul 2020

NextGen.Net yesterday announced it has acquired Frollo, a fintech on the front line of delivering open banking solutions to Australia’s financial services sector as one of the only two Accredited Data Recipients able to receive data as of the system's 1 July launch. 

The acquisition has brought the two companies and their complementary technology together to more effectively and efficiently usher the industry into the new data-sharing environment.

NextGen.Net, already a leader in lending technology, plans to integrate Frollo’s open banking solution into its platform to reduce the cost of responsible lending and improve decision times, resulting in an improved experience across the board.

“Frollo recognised the potential of CDR early on, had a clear vision and demonstrated a singular purpose in building that vision,” said Adrian Macleod, CEO and founder of NextGen.Net.

“They are the Australian market leader in open banking and the Frollo platform is by far the most advanced, particularly in its use of Artificial Intelligence (AI). We are very excited by the possibilities ahead for the two organisations.”

Frollo’s current aim is to help neobanks, traditional banks, fintechs and lenders get ahead of the competition through adopting open banking solutions, including the development of API-led digital money management features that can be integrated into a white label solution or third-party app.

“We are thrilled to now be part of the NextGen family,” said Frollo founder and CEO Gareth Gumbley.

“There is a huge potential for growth. We’re excited to explore the opportunities for our technology in lending services alongside NextGen.Net, and leverage learnings as we continue to support our fintech and banking partners to get ahead in open banking.”

The Frollo brand and business will continue to operate independently, as the two companies pursue their individual visions while benefitting from the ability to leverage one another's experience.

Recently, Frollo has reported increased demand from both banks and non-banks applying its AI technology to their aggregated or first-party data to help customers make better decisions.