Icelandic challenger bank indó selects Enfuce

via FinTech Futures

Icelandic neobank indó has charged Finnish fintech Enfuce with underpinning its payments, open banking and sustainability services.

Indó was seeking a full-service partner with “a focus on speed and compliance” ahead of its planned launch later in 2020.

Founded in 2018, the Icelandic neobank aims to reinvent banking in its home country with a card-linked app and current account featuring competitive interest rates.

The bank never directly manages user funds. Instead, it operates a model whereby deposits are safely deposited with a local central bank.

The challenger also claims that it will not be taking any fees on its accounts, only charging a transaction fee.

Founders Hakon Skúlason and Tryggvi Bjorn Davidsson are both former bankers.

Skúlason spent two and half years as a director at VÍB, the asset management division of Islandsbanki.

Davidsson worked as a director at Barclays Capital for seven years before joining Islandsbanki as a managing director, a post he held for five years until June 2017.

“We at indó are thrilled to partner up with Enfuce on our journey,” says CEO Skúlason.

“The core value for which indó stands, and our desire to affect a real change in the banking industry, is matched by Enfuce’s drive and vision. Enfuce is not only a partner in our venture, they are a crucial element in our above-and-beyond value proposition to our customers.”

The financial sector in Iceland emerged from the 2008 financial crisis with three of its largest banks taken over by the government.

Many of the country’s largest institutions were split apart and relaunched under supervision, including Landsbankinn, Islandsbanki, Arion Banko and MP Banki.