A new set of digital banks are arriving in Australia to compete with the big four — NAB, ANZ, Westpac and the Commonwealth Bank — with a new one approved to operate on Thursday.
86 400 — named for the number of seconds in a day — has now been authorised to accept deposits, and promises to be in operation later this year.
Anthony Thomson, the chair of 86 400, has a history of founding successful challenger banks, including Metro Bank, which was the UK’s first new high street bank in over 150 years.
Competitors Xinja, Digital banks Volt and Judo have already arrived in Australia and are at different stages of approval.
Fintech startup N26 is raising $170 million a few months after raising $300 million. While it’s technically structured as a new round, the company considers today’s new funding as an extension of the Series D round.
N26 has only reached out to existing investors. All the investors in the Series D round are investing again, as well as a few investors that have been around for a while. So that’s Insight Venture Partners, GIC (Singapore’s sovereign wealth fund), Tencent, Allianz X, Peter Thiel’s Valar Ventures, Earlybird Venture Capital and Greyhound Capital. (more…)
N26 is keeping its three-tier system with a free basic bank account, a premium account (N26 You) and a super premium account (N26 Metal). With N26’s free plan, you can pay anywhere in the world without any foreign transaction fee, but there’s a 1.7% markup on ATM withdrawals in a foreign currency.
N26 You costs the same price as the previous premium plan N26 Black, €9.90 in the Eurozone and £4.90 in the U.K. In addition to a travel and purchase insurance package, you can withdraw money without any foreign transaction fee (€9.90 is roughly what you’d pay in fees if you withdraw the equivalent of €580 with a free N26 account). (more…)
The announcement from MAS that non-banking fintechs will be eligible to create banks in the digital format, and provide services without any physical branches whatsoever can be considered as the biggest headliner in the financial news of Singapore in July. Altogether, MAS is planning on issuing 5 digital banking licenses in the nearest future.
Applications admission shall begin in August and financial enterprises are, one after another, already announcing their interest in getting the license. As early as today, top managers form Validus, Grab, Razer, Singtel, and InstaReM have already expressed such intentions.
The new licenses issued for digital banking allow the performing of the following services: depositing, lending, and investing for both businesses and natural persons. Customer onboarding therefore, will become essential as the very first step towards utilizing the product. This step has to take into consideration the requirements of the regulations as well as internal risk assessment. This motivates companies to engage in specific partnerships in order to perform the onboarding and KYC. (more…)
Curve, the London-based “over-the-top banking platform,” has raised $55 million in new funding. The startup lets you consolidate all of your bank cards into a single Curve card and app to make it easier to manage your spending and access other benefits.
Curve’s Series B round is led by Gauss Ventures, the London-HQ’d fintech investor, alongside Creditease, IDC Ventures and previous backer Outward VC (formerly Investec’s INVC fund). A number of other early investors, including Santander InnoVentures, Breega, Seedcamp and Speedinvest also followed on.
The new round of funding values Curve at $250 million (or one-quarter unicorn, so to speak), and will be used by the company to continue adding more features to its platform and for further European expansion. (It also plans to launch in the U.S. in 2020). To date, the company claims 500,000 users and says it is on track to reach 1 million by the end of the year. (more…)
There are a handful of firms gunning to become leaders in the challenger bank space. There are the usual suspects, like Revolut and N26. But there are others firms that are growing their userbases and assets. One of those companies is CARD. It has 600,000 accounts and $3 billion in customer deposits to date. With some new growth initiatives, CARD claims it is on track to surpass 1.5 million new accounts in 2019.
CARD’s kind of an unbank bank — meaning, the product focus is on branded debit cards, including logos from popular sports teams, athletes, and music groups.
CARD CEO Tim Coltrell joins us to talk about how he’s doubling his account base year over year and what he’s doing to evolve into a competitive challenger bank brand. We discuss Card’s product pipeline and how the company acquires new customers. (more…)
Challenger bank Tandem Bank has been recognized as “Best Credit Card Provider” and “Innovation of the Year” at the Consumer Credit Awards, according to a release. The Consumer Credit Awards are run by Smart Money People.
Tandem CEO Ricky Knox said the Consumer Credit Awards mean a lot to his company because the winners are voted for by consumers. (more…)
Trulioo, which focuses on global identity verification, said Wednesday (July 10) that it now is able to verify customers in new countries, including Bahrain, Iceland, Qatar and Georgia.
The company said in a press release that it is able to verify customers in those countries through GlobalGateway, its marketplace of identity data and services. (more…)
As the challenger and neo-bank industry starts to mature, what used to be called “startups” are now reaching puberty.
These alternative banks aren’t the cute little babies that they used to be. Rather than hoping to someday be like dad, now they’re actually competing with dad.
At least this is the case of Argentina’s most famous challenger bank, Ualá. Previously succeeding in terms of debit card allocation, it is now joining the big boys club with its new credit services. (more…)
NiYO Solutions, a Benglauru-based neo-banking startup has raised $35 million in a Series B funding round. The round was led by Horizons Ventures and Tencent. While, the company’s existing investor JS Capital also participated in the funding round.
The company plans to use the funding to accelerate the development and rollout of new product offerings. It will also use funds to amplify distribution and marketing. (more…)
Digital banks are looking to make donating to charity more accessible and simple for their customers. From round-up features to charity linked loyalty programs, raising money for fintech users’ favorite causes is becoming more tech friendly.
54 percent of donors worldwide prefer to give to charity online, according to Non-Profits Sources. That’s driving $31 billion of online charitable givings in the U.S. alone. Plus, in 2018, mobile payments grew by 36 percent. While there are still some who prefer mailing donations, the number of people who are attracted to quick and easy forms of giving to charity is growing. (more…)
OVO, one of Indonesia’s leading digital payments platform, has selected Refinitiv’s World-Check to support its Know-Your-Customer (KYC) and Anti-Money Laundering (AML) procedures to minimize its exposure to financial crime risks.
This partnership comes at a time when OVO looks to continue the expansion of its business and to drive financial inclusion across the country.
With Indonesia’s push to build an inclusive digital economy and financial ecosystem, financial technology services such as OVO play an integral role in defining industry standards and enhancing measures to fight against financial crime. (more…)
Digital challenger bank Monese announced on Thursday it has formed a new collaboration with payments platform giant PayPal. Monese reported that customers in the UK will be able to do the following:
- Link Monese and PayPal accounts, to manage PayPal balance and transactions in the Monese app
- Seamlessly add Monese card to PayPal digital wallet to buy from, and send money to, PayPal’s 277 million consumers and merchants around the world
- Easily select Monese as preferred way to pay within PayPal wallet
Six major banks in the Nordic region will form a customer checking center to help combat money laundering and improve the reputation of the area’s financial institutions, according to a report by Reuters.
The banks involved will be Danske Bank, Swedbank Handelsbanken, Nordea, SEB and DNB. The banks said the KYC Utility would gather know your customer (KYC) checks to start with at large and medium-sized companies in the region, and also start offering commercial services.
Money laundering is a big concern for the region after Danske Bank and Swedbank were implicated in scandals that cost them both billions in their value on the market. (more…)
P.F.C. (Personal Finance Co.), a so-called “neobank” founded in Sweden, has raised €5 million in funding. Backing the young company is Nordea, the largest bank in the Nordics region.
In other words, chalk this up as another example of an incumbent bank placing financial and strategic bets on a fintech upstart, even if it doesn’t always end as the parties involved planned. (more…)
The new era of tech-enabled banks is coming, even in regulation-heavy Japan. Kyash, a fintech company with visions on becoming Japan’s first challenger bank, said today it has raised $14 million to continue its expansion.
To be clear, Kyash isn’t a bank. Yet. But it is currently applying for a host of licenses in Japan that could allow it to offer banking-style features, including checking accounts, ATM withdrawals and money remittance. Right now, it is a payment app that offers a connected Visa card in the style of Monzo, N26, Revolut (which has a Japan license) and others of that ilk.
The startup was founded in 2015 by Shinichi Takatori, a former banker and management consultant who saw the potential to merge tech and finance. (more…)
via FinTech Futures
SmartSearch says it is currently the only organisation in the UK with the ability to verify individuals and companies in the UK and internationally, all in a single platform via a browser or API, with full sanction, politically exposed persons (PEP) and adverse media screening and then ongoing monitoring. (more…)
Monzo, the UK challenger bank, raises £113M Series F led by YC’s Continuity fund at a £2B post-money valuation
Monzo, the fast-growing U.K.-based challenger bank with more than two million account holders, has raised £113 million (~$144m) in additional funding.
Confirming TechCrunch’s scoop in April, the Series F round is led by Y Combinator’s “Continuity” growth fund, and gives the company a new £2 billion (~$2.5b) post-money valuation. That’s double the £1 billion valuation it garnered in October last year. (more…)
The last thing anyone wants to hear from a financial organization is that the people tasked with risk management are feeling less than confident about their ability to do the job — because they aren’t sure if their data is good. If the risk experts aren’t feeling confident, it is difficult to know how anyone else in an organization will.
However, in flipping through the latest edition of the PYMNTS AML/KYC Tracker, a collaboration with Trulioo, there is a lot of data to suggest that this is the situation in many organizations.
About 29 percent of banks have not implemented know your customer (KYC) tools or external data providers across the customer life cycle. In addition, 69 percent of crypto exchanges lack “complete and transparent” KYC and customer due diligence processes, and 71 percent of trade providers have cited compliance limitations and inadequate KYC practices as key factors in driving trade finance rejection rates. Perhaps most worryingly, 63 percent of anti-money laundering (AML) compliance professionals said they lack confidence in their data. (more…)
Dave, the mobile personal finance app that helps people avoid overdraft fees, is getting into the banking market, announcing the launch of Dave Banking.
It’s the latest challenger bank to launch in the U.S. following on the heels of Monzo of the U.K. last week.
Aimed at the younger generations, Dave Banking helps customers build their credit by automatically reporting everyday payments including rent and utility bills. The service, which costs $120 a year, is free to users who deposit their paycheck into the Dave Banking account. The checking account also provides customers with a $100 no-interest overdraft protection, available regardless of the customer’s current credit score.
In conjunction with the launch of its bank, the Los Angeles startup that counts Mark Cuban as an investor raised $110 million in debt led by Victory Park Capital. Co-founder and chief executive Jason Wilk said the company is in talks with investors about raising more capital at a valuation of close to $1 billion.
Crypto Friendly Digital Bank Arival Accepting Investment Reservations on SeedInvest for Upcoming Crowdfunding Round
Digital challenger bank Arival is now accepting reservations for preferred stock on SeedInvest.
Arival will be a crypto-friendly bank – unlike most traditional banks in the United States which tend to be crypto-averse.
The bank was founded on the notion that banks in many places around the world are closing accounts of crypto-related businesses as they are fearful of any collateral ramifications to holding these types of accounts. Arival says they surveyed “hundreds” of Fintech and blockchain startups in their network and 90% indicated they have encountered problems in some capacity.
But it is not only the crypto-sector that Arival wants to service. The digital-only bank wants to provide banking services to all SMEs and GIG economy companies seeking an alternative to the high cost, low service, experience of traditional brick and mortar banks. (more…)
Leading Southeast Asian ride-sharing provider Grab is considering applying for a digital banking license if Singapore’s banking regulator allows it, Reuters reported citing four people with knowledge of the process.
Grab, which acquired Uber Technologies Inc.’s Southeast Asian business and now carries a valuation of $14 billion, is close to hiring a consultancy firm to advise it on the matter, Reuters said. A company representative declined to comment.
Payzello is a new challenger bank in India, focusing on the retail market that offers a wide variety of products, with a specific focus on personal finance management.
In its list of offerings, the firm includes a single card for both debit and credit, app-based loans, money transfer and request, end to end expense management, Bharat QR, three minutes’ account opening, among others – and all this with zero paperwork.
A chatbot is included in the app, called Ello. It was made for conversations regarding users’ finances and provides suggestions. (more…)
Step, a financial services startup that offers fee-free money management accounts to teens, today announced that it has secured $22.5 million in a series A round led by Stripe, with participation from existing investors Crosslink Capital, Collaborative Fund, and Sesame Ventures. The round — which also saw contributions from Will Smith’s Dreamer’s fund, hip hop musician Nas, consumer tech holding company WndrCo, former NFL player Ronnie Lott, Matt Rutler, Kevin Gould, and Noah and Jonah Goodhart — brings Step’s total raised to over $25 million. CEO and cofounder CJ MacDonald said the new funds will be used to expand Step’s offerings, workforce, and user base. (more…)
via Finivate blog
The two are hoping to foster financial inclusion by promoting access to digital identity solutions. By combining Trulioo’s GlobalGateway solution with Refinitiv’s risk intelligence, banks can verify billions of customers online while remaining compliant with AML and KYC regulations and ultimately reduce fraud. (more…)