Issue link: https://go.axway.com/i/1321495
28 Open Banking APIs State of the Market Report 2020 introduce business models at that time. With the ongoing impacts of COVID-19, it is expected that these fintech will be the first to falter, as investment dries up for businesses that are not able to demonstrate early profitability. Our analysis is fairly rudimentary: we only tally the business model for the primary product released by each fintech (when they may in fact have multiple products, each with a different business model). However, it is clear that we are not yet seeing more nuanced business models that draw on multiple revenue streams. There are some emerging promising practices, however. The budget app Cake is a good example of the new revenue models that fintech could implement. The European fintech based in Belgium but expanding to other countries in Europe uses account information APIs to provide a budgeting app to their users. They aggregate and anonymize data on the spending patterns of all of their users and sell that to enterprise customers who want to analyze spending behavior trends. They also offer channel marketing sales to businesses who want to offer sales discounts to Cake app users. Other models are under development, such as offering an enterprise's loyalty program to app users. This type of multi-pronged business model is fairly novel in the open banking world at present. BUSINESS MODELS OF FINTECH KNOWN TO BE USING OPEN BANKING APIS (N=569) Subscription revenue Not Applicable Freemium Interest Data Analytics sales Affiliate Direct sales Commission based Transactional revenue 151 246 1 2 8 8 9 11 32 101 Unknown Number of models