Mettle was launched as a test last October and is now being rolled out in full. It is a standalone digital offering launched by NatWest, which does not have a banking licence – only an e-money licence like Tide. Since it comes without fees, the question arises – is it any good compared to other business bank accounts? (more…)
via Finovate blog
Revolut and Mastercard have teamed up this month to help rebuild schools in Mozambique after they were destroyed by a cyclone this spring. The effort, which is timed with UN’s Universal Children’s Day, aims to raise $207,000 (£160,000) to help get children in Mozambique back to school. (more…)
A growing throng of startups are betting you’d like to do your banking on your smartphone. San Francisco-based Chime, which offers a debit card with no monthly or overdraft fees, has seen its revenue explode over the past year. In 2019, it will reach nearly $200 million, a fourfold increase over 2018, according to a person familiar with the matter. Now the company plans to expand into other products like credit cards and investment services in its quest to become a full-service digital bank. (more…)
Brazilian Digital bank Neon has reportedly raised $95.27 million in a funding round led by Banco Votorantim and the General Atlantic fund. Neon claims a customer base of 2 million users and claims 25,000 new accounts – each day. The additional funding will help the digital bank grow with expectations to triple that number by 2020. (more…)
OBSERVATIONS FROM THE FINTECH SNARK TANK
Challenger banks, neobanks –or whatever you want to call these fintech startups–face a number of challenges themselves:
- Consumers don’t want a bank just because it doesn’t have branches.
- The digital user experience at banks–especially the mega-banks–isn’t as bad as many challenger banks claim.
- Even if a challenger bank’s user experience was superior, consumers don’t simply want a better experience–they want better products and services.
- Many challenger banks have yet to demonstrate sustainable revenue generation.
Canada has always been one of the modern and innovative countries, especially when it comes to the financial sector of the country. That is not a secret anymore that cryptocurrency, more specifically Bitcoin, has been taking over the world in many aspects of our daily life.
Thus even Canada’s biggest bank, the Royal Bank of Canada (RBC), has recently announced that it is planning to launch its own cryptocurrency trading platform. It was confirmed when everyone found out that the bank applied for four patents both in Canada and the U.S. to navigate across ways to properly integrate cryptocurrencies in its operations. (more…)
via FinTech Futures
UK banks HSBC and RBS are both set to launch new separate digital banking platforms.
HSBC has announced its app-based service for small business customers – HSBC Kinetic – is in beta testing, just as RBS, through NatWest, is gearing up to launch its new digital bank Bó to the public later this month. (more…)
Xero users will have direct access to NatWest’s Rapid Cash service, which provides businesses with a flexible line of credit to cover unpaid invoices for up to £500,000.
Starling has hit the 1 million account milestone, placing it among the three most successful UK neobanks
via Business Insider
UK neobank Starling has achieved the 1 million account mark, Starling’s founder and CEO Anne Boden confirmed to Yahoo Finance UK. The milestone places Starling among the three most successful neobanks in the UK — trailing Revolut’s 8 million customers and Monzo’s 3.3 million. (more…)
BASIS ID, the Estonia-based startup dedicated to ease the hurdles from customer onboarding and KYC will co-host with RegPac an event during the Singapore FinTech Festival. Given the tightened regulatory controls arising from recent scandals with the likes of 1MDB, BASIS ID enjoys a market leader position by offering a KYC service that exactly meets the needs from today’s landscape. By offering an agile yet efficient KYC tool, BASIS ID is making client onboarding seamless. (more…)
Digital challenger bank Tandem is expanding to Hong Kong as it begins an international expansion strategy.
The firm launched in the UK in 2016 and then swiftly, and somewhat unexpectedly, bought Harrods bank.
Now it says it offers a full-service digital bank, offering a suite of financial products in the UK, including savings accounts, mortgages, credit cards and loans but has kept quiet on plans to launch in other geographies unlike other digital banks such as Revolut and Monzo. (more…)
Bnext, a Spain-based mobile-first neobank, has successfully secured more than £2.6 million through its equity crowdfunding campaign on Crowdcube. The funding round, which originally sought to raise a minimum of £1 million, was launched just weeks after the digital banking startup raised $25 million through its Series A funding round. (more…)
Digital banking app Revolut has been named the UK’s fastest-growing tech company, with an average three-year growth rate of 48,477%.
The figures were published today in Deloitte’s 2019 UK Technology Fast 50 ranking, which calculates the fastest-growing tech companies every year.
A new Australian fintech, DayTek Capital, is due to launch “Infinity” in the first half of 2020 with a vision to becoming the first “product-disruptive” bank in Australia.
Initially starting with a prepaid card, the business is already working towards its Restricted Authorised Deposit-Taking Institution Licence, with an aim for it to be completed later that year.
Infinity has already generated great interest in Australia, with the federal government offering assistance in support of the venture. Trade & Investment Queensland, the Queensland Government’s dedicated global business promotion agency, is also supporting Infinity and its potential to create skilled jobs in Queensland.
About 12 years ago, Kenya announced the launch of M-Pesa – a mobile money transfer, microfinancing service. Back then, it was truly a step forward in the world of digital payments. But as time goes by, it’s becoming more important to start analyzing consumer behavior and how it redefines digital payment solutions.
Despite the huge impact on various market segments, consumers are becoming more aware and demanding in terms of convenience and quality of service provided. They start speaking out about the limitations of mobile money and asking for something that would imply to the fast-paced rhythm of our lives. (more…)
US challenger bank is planning to launch its product next year and reward people for positive financial behaviour. The company has set up variable annual percentage yields for accounts based on the rate its customers save. The firm will provide customers with a digital bank account that combines both checking and saving features, and will also offer one-click free credit scoring and will have a network of 55,000 no-fee ATMs . (more…)
Globally, a vast army of neobanks are targeting all sorts of consumer and small-business niches — from Millennial investors to dentists and franchise owners. McKinsey estimates there are 5,000 startups worldwide offering new and traditional financial services. Underlying this explosion is new infrastructure that makes starting a neobank cheap and easy, plus a rising generation that prefers to do everything from their phones. While it can take years and millions in legal and other costs to launch a real bank, new plug-and-play applications enable a startup to hook up to products supplied by traditional banks.
German digital bank N26 is currently leading the European challengers in the US digital banking landgrab, taking nearly 50,000 downloads for the month of September, according to figures from Apptopia.
All are playing catch-up with local digital banking challenger Current and market leader Chime with 109,000 and 740,000 downloads respectively. (more…)
One of the main reasons the U.K. lays claim to being the fintech capital of the universe is due to regulatory support and encouragement. Federal regulators in the U.S. so far have not joined the party. But when they do, the impact for financial institutions could be sweeping. (more…)
German fintech firm Wirecard has introduced a new payment app, called boon Planet, with neo-banking services. The app will enable the users to create a digital bank account, transfer money and conduct contactless payments. The customers will also receive a physical debit Mastercard as part of the offering.