Digital-only neobank Moven has announced a five-year extension of its money management app tech licensing deal with Canada’s TD Bank, in a move which is expected to fund the business to the tune of more than $20m over the next two years alone.
Under the terms of the agreement, TD continues to have the exclusive Canadian distribution rights to Moven’s technology, and extends this to the US market. The first app of its kind in Canada, TD MySpend launched in May of 2016 and immediately shot to the number one spot on Canadian App stores beating out Facebook, Snapchat, Instagram and others.
Rizwan Khalfan, chief digital officer, TD, says: “Within nine months we’ve already exceeded 850,000 registered users. Moreover, we are seeing customers who are using the app reduce their spending by around four to eight per cent, with most frequent users seeing the greatest impact.”
Moven operates in a hybrid fashion with a global enterprise software business licensing technology to banks around the world and a direct to consumer neo-banking service in the US.
The service is already live in four geographies (Canada, New Zealand, UK, and US) with over one million users, and Moven expects that to increase to more than five million users in six geographies by the end of this year.
Brett King, founder and CEO of Moven, says: “We realised early on that we couldn’t get tens of millions of customers using the app across multiple geographies without partners like TD, who bring us real scale and solve one of the biggest problems that fintechs face today, which is recurring revenue growth. We continue to offer direct to consumer capabilities in the US, and we just announced the launch of our app in the UK, but the bigger numbers are coming from our global banking partnerships.”