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318

The Monzo effect: how traditional banks are challenging the challengers

via Which?

Many of the major high-street banks have added challenger-style features to their mobile banking offerings in recent years. The article covers key features of the apps from Barclays, Royal Bank of Scotland, HSBC, and Lloyds. When choosing a bank, it’s important to shop around to make sure you’re getting the best deal:  Starling and Monzo’s apps are known for their budgeting and personal finance features, while high-street banks tend to offer a wider range of products through their apps. (more…)

Banks, Mobile-first banks

April 19, 2019

258

New study: Challenger banks overtake traditional banks in customer satisfaction, in 4 charts

via Tearsheet

Challenger banks have leapfrogged to the forefront in overall customer satisfaction, according to a new study from FIS.

The 2019 FIS Performance Against Customer Expectations (PACE) surveyed almost 1800 US consumers.

Customers increasingly like challenger banks

63 percent of direct bank customers report being “extremely satisfied”, compared to 52 percent of credit union customers and just 19 percent of customers of the top 50 global banks. (more…)

Analytics, Banks, Mobile-first banks

April 17, 2019

264

Canadian challenger Mogo merges with Difference Capital

via Fintech Futures 

Mogo Finance Technology, the Canadian challenger bank, has signed a definitive arrangement to merge the bank with Difference Capital Financial.

Under the terms of the agreement, each common share of Mogo will be exchanged for one Difference common share. Upon completion of the transaction, former Mogo shareholders will own approximately 80% of the combined entity on a fully diluted basis. (more…)

Banks

April 16, 2019

204

New challenger Xpats kicks off from Mexico

via FinTech Futures 

Xpats Challenger Bank is a new Mexican venture targeting, as you can imagine, expats around the word, with a digital and mobile offering.

FinTech Futures understands that the new digital bank was set up by Ictineo Plataforma, which offers financial solutions for productive sectors of the population with low incomes. The company is a financial institution regulated by the CNBV. (more…)

Banks, Mobile-first banks

April 16, 2019

266

New Challenges, Competitive Threats Sharking Financial Waters

via The Financial Brand

In banking, there’s no shortage of new challenges and competitive threats keeping financial marketers up at night. Facing increasingly intense pressure, traditional institutions are innovating faster than ever. (more…)

Analytics, Banks, Global trends

April 15, 2019

1091

Goldman Sachs is Betting Big on Fintech

via Crowdfund Insider

While most of the headlines covering Goldman Sachs’ Q1 earnings report targeted the decline in earnings and profit, for investors that tuned in to the earnings call they were able to learn more about Goldman’s transformation into a financial services firm of the future.

Sure. Equity trading dipped but Fintech initiatives may be indicative of a promising future for the world’s most prominent investment bank. (more…)

Banks, Fintech news

April 15, 2019

239

Challenger banks face challenges with global expansion

via Tearsheet

European challenger banks are going global. Revolut and N26 are set on acquiring local licenses to launch in markets around the world by assembling regulatory SWAT teams. Others, like OakNorth, are licensing their technology out to go global. Regardless of the expansion strategy, it’s not all unicorns and rainbows as these neobanks push on the growth envelope. Challenger banks are quite delayed in their entry to the US market and have bumped into resistance in other geographies, too. Will challenger banks succeed with their global ambitions? (more…)

Banks, Mobile-first banks

April 15, 2019

157

Supply Chain Finance Stumped By KYC

via PYMNTS

The Asian Development Bank’s estimates that the global trade finance gap has reached $1.5 trillion has jumpstarted a new wave of competition between banks and FinTechs working to address the biggest challenges to landing capital in the hands of global traders.

FinTech has identified a particularly large opportunity in the trade finance market, pegging traditional banks as too slow to innovate, without the agility to manage the complex processes often linked with financing trade with smaller businesses. Banks’ massive compliance burdens cannot be ignored, either.

However, analysts also note that FinTechs have their own regulatory requirements as well (albeit, often much lower than those of banks), and because they aim to address the financing gap for smaller businesses seen as less lucrative by banks, the due diligence burden is lofty as well. A 2017 report by the Asian Development Bank found that, despite its efforts, FinTech had not yet made a dent on that global trade finance gap. (more…)

Analytics, Banks

April 15, 2019

121

Aussie challenger 86 400 scores home loan distribution deal

via Finextra

Australian challenger bank 86 400 has come a step closer to launching a home loan product after securing a national distribution deal with mortgage broker aggregator Vow Financial

The deal means 86 400 can deliver home loans via Vow Financial’s network of over 1200 brokers once it secures its full banking license from the Australian Prudential Regulation Authority.

(more…)

Banks, InspirAsia

April 15, 2019

182

Rise of challenger banks in Asia

via The Edge Markets MY

Challenger banks have been a trend in markets such as the UK in the last few years, but activity is ramping up in Asian markets like South Korea, Greater China and Southeast Asia, says James Lloyd, fintech and payments leader for Asia-Pacific at EY, in the recently published Citi GPS: Global Perspectives and Solutions report, titled “Bank X: The New New Bank”. (more…)

Banks, InspirAsia, Mobile-first banks

April 14, 2019

239

Aussie fintech Volt Bank starts by asking consumers what they want

via ZDNet

In January, the Australian Prudential Regulation Authority (APRA) gave fintech startup Volt Bank a licence to operate without restrictions as an authorised deposit-taking institution (ADI). The green light was given to the new player following APRA approval in May 2018 to act in the Australian finance market as a Restricted ADI.

The APRA approval gave Volt the title as the first digital startup bank in Australia to receive a banking licence since the early 2000s. Funds up to AU$250,000 deposited into Volt are guaranteed by the Australian government as part of this arrangement.   (more…)

Banks, InspirAsia, Mobile-first banks

April 11, 2019

396

The Challenger: Dozens’ Aritra Chakravarty

via AltFi

At the beginning of 2019 luminous yellow adverts promoting a mysterious new app began spreading across London.

Called Dozens, the app appeared almost out of nowhere with a digital banking service similar to a Monzo or Starling, but with the addition of a curious 5% fixed interest bond aimed at “savers”.

The only question on everyone’s mind was – who was behind this mysterious startup? (more…)

Banks, Mobile-first banks, People of fintech

April 10, 2019

316

Chase On Gen Z, Mobile Banking — 10 Years In

via PYMNTS

With more consumers than ever interested in fulfilling all their financial needs on mobile, both legacy banks and FinTech firms are focusing on creating digital-only banking services, designed to catch and keep customers using their smartphones to bank. What’s more, financial institutions (FIs) and payment providers around the world are trying their hand at providing all the capabilities of an established bank on the smartphone.

As consumers flock to banking apps, succeeding in the world of digital banking is not as easy as it used to be when mobile apps emerged a decade ago. In the new Digital Banking Tracker™, PYMNTS examines how startups are competing with legacy brands, social media services and even eCommerce companies that want to add financial capabilities to their platforms. (more…)

Analytics, Banks, Mobile-first banks

April 10, 2019

181

UK Challenger Bank Redwood Surpasses £100 Million Lending Milestone

via Crowdfund Insider

UK-based challenger bank Redwood has reportedly surpassed £100 million in lending. As previously reported, Redwood is considered one of the newest additions to the future of banking, joining peers such as Monzo, Starling, Revolut and more. Redwood is on a mission to target the SME market and its products include mortgages for business owners and professional landlords, as well as a range of savings accounts. (more…)

Banks, Mobile-first banks, SME

April 10, 2019

415

Varo Money gets NICE anti-fraud tech

via FinTech Futures

Varo Money, the US challenger bank, has selected NICE Actimize to implement its financial crime strategy for anti-money laundering (AML) protections, including know-your-customer (KYC) requirements, sanctions screening and transaction monitoring capabilities.

Varo will integrate NICE Actimize’s AML Essentials, a software-as-a-service (SaaS) AML solution that detects and scores a range of banking activities, including customer due diligence, transaction monitoring, watch list filtering and Suspicious Activity Report (or SAR) filings. (more…)

Banks, Fintech news, Mobile-first banks, Security

April 9, 2019

479

Sources: Y Combinator’s growth fund to back challenger bank Monzo

via TechCrunch

Just five months after announcing £85 million in Series E funding, Monzo is already gearing up to raise additional funding, which would almost double its valuation.

As reported in the Sunday Times yesterday, the U.K. challenger bank is close to raising £100 million in further funding in a new round led by an unnamed U.S. investor. If the deal goes through, it will reportedly give Monzo a pre-money valuation of close to £2 billion, up from £1 billion in October.

Now TechCrunch has learned that the new U.S. backer is Y Combinator. (more…)

Banks, Deals, Fintech news, Mobile-first banks

April 8, 2019

375

Envel bank launches “driverless” money management tech

via FinTech Futures

Envel, a challenger bank created around the use of artificial intelligence (AI) targeting millennials and Gen Zs, is launching a “Driverless Banking” framework that automates the steering of customer finances in real-time to stabilise spending.

The bank’s autonomous framework couples with Banking-as-a-Service (BaaS) solution Cambr, while using behavioural insights to centralise money management activities spread across multiple apps, platforms or services. (more…)

AI / Machine Learning / Big Data, Banks, Fintech news

April 8, 2019

334

Chetwood launches new savings account SmartSave

via FinTech Futures 

SmartSave is a new savings platform created by Chetwood Financial that aims to use technology to “make its customers better off”.

“We’re based outside of London and use modern technology to keep our costs low, so that we can offer great rates,” the bank says.

SmartSave was designed with its customers to offer “a simple way to save”, through an online account that is clear about when the terms are ending.

The bank says SmartSave will launch in the near future. (more…)

Banks

April 4, 2019

305

Moxy picks Nymbus to power DC’s newest bank for 20 years

via FinTech Futures

Nymbus’ SmartCore cloud-based core platform has been picked to support Moxy Bank, Washington DC’s newest bank in two decades, reports Jane Connolly.

The bank will also implement Nymbus’ SmartDigital for internet and mobile banking and SmartPayments for debit card processing and fraud protection. (more…)

Banks

April 2, 2019

525

German fintech company builder Finleap acquires SME banking provider Penta

via TechCrunch

Just since months after raising $7 million in Series A funding, German SME banking provider Penta has been acquired by Finleap. Terms of the deal remain undisclosed, although I understand that the acquisition sees Finleap and Penta’s co-founders becoming the challenger bank’s sole owners, with all other shareholders exiting.

Launched in late 2014 by Hitfox Group and Ramin Niroumand, Finleap has developed 16 ventures from scratch, as well as acquiring a number of fintechs. Companies in its portfolio include banking platform solarisBank, of which Penta is a customer, and digital insurer Element, to name just two. (more…)

Banks, SME

April 2, 2019

214

For South Africa’s first challenger bank, conversational AI isn’t just a nice-to-have

via Tearsheet

South Africa’s TymeBank has launched Max, an AI-powered conversational assistant designed to help consumers learn about personal finance.

For South Africa’s first challenger bank, conversational AI is an important piece of its product roadmap. (more…)

AI / Machine Learning / Big Data, Banks, Fintech news

April 2, 2019

550

Australian neobanks target scale of UK rivals without growing pains

via AltFi

A flurry of neo banks in Australia are threatening to make inroads into the dominance of the country’s established lenders.

Sydney-based digital bank Volt promises to offer a faster more personalised service than the country’s big four incumbents – National Australia Bank, Commonwealth Bank, Australia and New Zealand Banking Group and Westpac. (more…)

Banks, Fintech news

April 1, 2019

436

‘Why would anyone want to become a bank’: Will more challenger banks evolve as banking as a service providers?

via Tearsheet

Starling Bank recently raised £75 million to fund a European expansion. As part of that announcement, the UK-based challenger said it had signed on three new clients to its banking as a service.

According to Starling, it has 20 institutional clients on its BaaS platform, which it launched in August 2018. Payment volume through the service is doubling month over month. (more…)

Banks, Mobile-first banks, Open Source/ API

April 1, 2019

372

NatWest trials money management app

via Finextra

UK bank NatWest is trialling a standalone personal finance app that uses AI, data analytics and Open Banking APIs to help customers better manage their money.

The app, called Mimo, will help customers budget, remind them of the financial tasks they need to do and provide proactive and personal insights into their money, looking at their bills or day-to-day spending, as well as insurance, subscriptions and utilities before offering tips on the best deals on the market.

(more…)

Banks, Mobile-first banks, Open Source/ API, PFM/PFP services

April 1, 2019

361

Citi urges incumbents to grow their own challenger brands as new entrants shrink the market

via Finextra

Incumbent banks operating on ageing technology stacks are looking at a 30% revenue hit as new digital-first challengers enter the market, according to a report produced by Citibank. (more…)

Banks, Mobile-first banks

April 1, 2019

190

Rewire helps migrants in Europe with $12m funding

via FinTech Futures 

Rewire, the fintech that developed a banking platform for migrants, has completed a Series A investment round of $12 million.

This latest round, led by venture fund Viola Fintech, is supported by new and existing investors, including BNP Paribas through their venture capital fund Opera Tech Ventures, OurCrowd, Moneta, Professor Yair Tauman, Yaron Lemelbaum, Leon Vaidman and partner Standard Bank of South Africa.

Rewire provides an international banking platform for migrants who transfer most of their income to their countries of origin. (more…)

Banks, Payment processors/providers/gateways

March 28, 2019

325

Inside OakNorth’s plan to take its lending technology global

via Tearsheet

As a challenger bank, OakNorth charts a different course. While Revolut, Monzo, and N26 focus on putting their digital current accounts in the hands of millions, OakNorth doesn’t even offer a current account. While other challengers are racing to acquire banking licenses all over the world, OakNorth is happy with just a UK license.

OakNorth is also posting profits while other challengers aren’t.  The bank announced a £33.9m profit for 2018, up 220 percent from 2017. (more…)

Banks, p2p/online lending, SME

March 27, 2019

264

Hong Kong hands out virtual bank licenses as it disrupts traditional banking

via Tech in Asia 

Hong Kong’s monetary authority handed out three virtual bank licenses to allow financial institutions to operate branchless savings and lending businesses, as the city catches up with other Asian jurisdictions in disrupting traditional banking to move it beyond brick-and-mortar premises.

(more…)

Banks, Hong Kong, InspirAsia

March 27, 2019

235

Bank Negara Malaysia to Pave the Way for Neo Banks

via Fintech News Malaysia 

by Vincent Fong

Bank Negara Malaysia will soon release its requirements for a virtual banking license by end of this year. Virtual banking license seems to be all the rage these days with Hong Kong announcing their 3 approved licensees the same day Malaysia announces its ambitions to regulate this space. (more…)

Banks, InspirAsia, Malaysia, Mobile-first banks

March 27, 2019