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Ohpen, a Dutch fintech-scale-up offering cloud banking software closed a €15 million Series B funding round at a valuation of €100 million. Private equity firm Amerborgh led the round to help Ohpen scale up the company and enter new markets. Running on Amazon Web Services, the company helps banks outsource software of their core systems such as savings, current accounts, pensions, and wealth management.
— Ohpen (@Ohpen) July 4, 2017
Value proposition Ohpen
A key value proposition of Ohpen is it eliminates the infamous ‘spaghetti code’ problem that most banks develop due to their reliance on several legacy systems. Providers of legacy systems tailor the software code to support business processes which end up twisting the code so much that it’s called ‘spaghetti code’.
However, enterprise customers have to tailor their processes according to the Ohpen’s single instance software. They can connect the front-end using Ohpen’s API. The core modules of Ohpen include investment accounts, payments, savings accounts, audit and risk management, CRM, portfolio management, order management, reporting, and back office.
The company charges a fixed fee per account making it possible for financial institutes to know how much it would cost to move to the cloud with their existing customer base. “We are saying you will not make a difference by buying back office, you make the difference on the front end. The good thing is that we have a system in the cloud, so you as a bank don’t have to worry; we will guarantee these back office processes work,” said Chris Zadeh, founder-CEO Ohpen.
Robeco, SNS Bank, Regio Bank, Aegon, and ASN Bank are among the startup’s growing list of customers. Dutch entrepreneurs entering legacy industries and upending traditional business models.