Neobanks – Innovative Words http://innovativewords.com/ Sat, 05 Jun 2021 04:20:52 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://innovativewords.com/wp-content/uploads/2021/04/default.png Neobanks – Innovative Words http://innovativewords.com/ 32 32 How Current’s digital leaders navigate the pandemic https://innovativewords.com/how-currents-digital-leaders-navigate-the-pandemic/ https://innovativewords.com/how-currents-digital-leaders-navigate-the-pandemic/#respond Fri, 04 Jun 2021 19:27:07 +0000 https://innovativewords.com/how-currents-digital-leaders-navigate-the-pandemic/ The digital-only upstart banks, known as neobanks , are on a growth tear. Newly released forecasts from Insider Intelligence show that by the end of next year, 1 in 10 American adults will have a neobank Account. One of the fastest growing neobanks today is New York-based Current, founded in 2015. Our forecast shows Current […]]]>


The digital-only upstart banks, known as

neobanks
, are on a growth tear.

Newly released forecasts from Insider Intelligence show that by the end of next year, 1 in 10 American adults will have a

neobank
Account.

One of the fastest growing neobanks today is New York-based Current, founded in 2015. Our forecast shows Current will have 4.0 million users by the end of 2021, more than double to reach 8.4 million in 2025.

To find out what is behind this rapid growth, Insider Intelligence interviewed two key members of Current’s executive leadership: Adam Hadi, VP of Marketing, and Josh Stephens, VP of Product.

They spoke about the skills needed to lead cross-functional teams and explained how the pandemic has changed their strategy.

Here are some excerpts from our conversation:


The following has been edited for clarity and brevity.

Insider Intelligence (II): Have you faced any marketing issues in the past year and have they affected your priorities in any way?

Current: Adam Hadi, Emma Quigley and Jeremy Barbara

Adam Hadi, Vice President of Marketing at Current.

Current


Adam Hadi (AH): We’re a new brand in the space just a few years ago, and building trust is a huge challenge. Legacy brands like Wells Fargo, Citibank, and Chase have been around for a very long time and have terrible reputations, but there is a sense of security that goes with them. They have been around for 120 years. So, for a new brand like us, stepping into the space and asking the customer who is largely paying a paycheck from their paycheck to their direct deposit requires a high level of trust. It is a big challenge that we are always trying to overcome.

II: Did Current intend to target first-time bank account holders, or was this a strategy that developed naturally?

AH: It’s pretty intentional. Banking is a high retention industry, so it is to our advantage that we can acquire people from their first bank account, but it’s a bit of a double-edged sword. It also means that it could be quite expensive to bring in someone. We have an advantage over the younger generations, but traditional banks have also made it quite easy to select clients who do not fit their business model, which sets us up well in both cases.

II: If you had to write a job description for yourself, what do you think would be the main elements of your role?

Josh_Stephens_Current

Josh Stephens, Vice President of Products at Current.

Insider Information


Josh Stephens (JS): For any product manager, there is a huge component of empathy and strategic vision. There is the ability of an artist to cut through a lot of noise to understand the real needs and problems of the users, and have a framework to look for a solution that can solve those needs.

… [My role is] about providing that framework to serve as benchmarks for the rest of the team to come up with the right kinds of product features, product services, and ultimately a strategic brand map to execute against those solutions. . .

II: If you had to look forward to five years, what would Current’s success look like?

JS: I often say, the way you spend your money is the way you live your life. Whether it’s where you go to eat, who you interact with, whether or not you can go on vacation, where you shop or how you get to work, these are all financial decisions that need to be considered. . . I think traditional banks weren’t good at it, and they weren’t designed for it. Currently, we have the opportunity to participate in this conversation. So if we look five years from now, we hope to be one of the first five institutions in the United States to participate in this discussion.


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An Efficient Bank Continues to Transform Thanks to the Synergy of Offline and Digital Solutions | Kiev post https://innovativewords.com/an-efficient-bank-continues-to-transform-thanks-to-the-synergy-of-offline-and-digital-solutions-kiev-post/ https://innovativewords.com/an-efficient-bank-continues-to-transform-thanks-to-the-synergy-of-offline-and-digital-solutions-kiev-post/#respond Fri, 04 Jun 2021 14:01:08 +0000 https://innovativewords.com/an-efficient-bank-continues-to-transform-thanks-to-the-synergy-of-offline-and-digital-solutions-kiev-post/ The past year has brought many changes to fairly familiar facets of our society: consumer sentiment and the communication model. It has been a difficult and stressful year, but also an interesting one for meeting challenges and recognizing new opportunities. The year 2020 has become a catalyst for the digital transformation of the financial system, […]]]>


The past year has brought many changes to fairly familiar facets of our society: consumer sentiment and the communication model. It has been a difficult and stressful year, but also an interesting one for meeting challenges and recognizing new opportunities.

The year 2020 has become a catalyst for the digital transformation of the financial system, which was ultimately forced to do everything it didn’t have time to complete as the pandemic and quarantine restrictions changed habits. of Ukrainians in favor of the Internet. solutions, digital technologies and cashless transactions.

In the same year, the National Bank of Ukraine adopted the necessary decisions to make remote identification possible via Bank ID and launched the Diia (Action) application, which is a breakthrough in the field of remote maintenance. This opened a new era in the development of banking technologies.

We can say that the market is already saturated with banking products. Customer demands and desires have already changed, and customers are increasingly demanding in technology, contactless service and remote and fast account opening.

As a result, competition in the financial sector has shifted to technology and digital innovation, highlighting banks’ lack of products, sales channels and technologies and forcing them to invest in the changes. transformational.

At O.Bank, our digital solution, launched in early 2020, received positive market feedback, supplying a third of Idea Bank’s new customers. This is clear proof of the demand for new technologies and digital solutions in the market.

Digital transformation has also had an impact on banks’ business models and strategic planning. Online sales are starting to push back offline sales and hence there is a need to determine the future of offline sales channels. Neobanks are successfully implementing the branchless business model, using only digital technologies. The majority of the big banks only use the applications and the online versions as a platform to sell their products offline and to access accounts, which is no longer sufficient.

As a result, combined business models comprising both offline sales channels and digital solutions will emerge, with separate dedicated products, technologies, people and units.

We can now see that some banks are optimizing their cumbersome and inefficient branch networks. However, the low efficiency of these branches does not largely depend on the efforts of their management. The problem concerns the competitiveness of products in the market, the demand for them, the right sales technologies, business processes and communication with customers.

On the other hand, some banks do not plan to reduce their branch networks, but rather to develop efficient points of sale, to rebuild the functionalities offered by the branches, to build competitive and demanded products and to improve the level of communication with customers.

Therefore, within 3-5 years, the focus will be on online sales and the combined business models will continue to improve their efficiency, as the diversification of sales channels and the ability to work with different segments of customers will provide optimization opportunities. expenditure and improve the efficiency of these banks.

Rue Valova 11, Lviv, Ukraine, 79008
info@ideabank.ua
www.ideabank.ua
NBU license n ° 96 of 04.11.2011



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Inside The Card Network’s digital currency plans https://innovativewords.com/inside-the-card-networks-digital-currency-plans/ https://innovativewords.com/inside-the-card-networks-digital-currency-plans/#respond Thu, 03 Jun 2021 08:38:01 +0000 https://innovativewords.com/inside-the-card-networks-digital-currency-plans/ Visa has broad plans for digital currency, as the payments industry begins to embrace the … [+] cryptocurrency opportunities. getty It’s been brewing for some time, but 2021 finally sees established payment companies taking cryptocurrency opportunities seriously, and among those leading the pack is Visa. V . An industry that was previously rife with volatility […]]]>


It’s been brewing for some time, but 2021 finally sees established payment companies taking cryptocurrency opportunities seriously, and among those leading the pack is Visa.

V
.

An industry that was previously rife with volatility and speculation is starting to see its business-friendly side flourish, and according to the card network, the opportunities are plentiful.

“The world of digital currencies and crypto has evolved and evolved considerably since the launch of Bitcoin in 2009,” says Nikola Plecas, Head of New Payment Flows, Visa Consulting and Analytics, Europe at Visa.

“Visa’s strategy is to be a network of networks and to be truly able to generate and complete new payment flows outside of the card rails. We’ve taken a huge step forward in these new flows over the past couple of years with products like B2B Connect, Visa Direct, Push to Pay – and digital currencies naturally fall into that category. “

However, that doesn’t mean that the world’s most famous cryptocurrency – Bitcoin – features prominently in the card network’s plans. Instead, Visa characterizes the industry as being made up of two distinct groups: conventional and unattached cryptocurrencies and digital currencies backed by fiat currencies, often referred to as stablecoins, which are attracting greater interest from the market. institutional and governmental organizations despite a currently smaller share of the overall market. .

The former is viewed by the company as a marketable asset with limited industrial potential – CEO Alfred Kelly described it as “digital gold” in the company’s second quarter 2021 earnings call. However, it is in the latter case that Visa sees significant potential for payments.

“We see them as having the potential to be used by consumers and traders in the same way as existing fiat currencies,” Plecas explains. “And when it comes to areas of opportunity, there are plenty for organizations like ours.”

The Five Pillars of Visa’s Cryptocurrency Plans

While many use the terms cryptocurrency and digital currency interchangeably, Visa has chosen to characterize the area it focuses on – the stable side of the industry – as digital currencies.

Visa’s digital currency efforts currently fall into five areas. Some of them are well established and are already contributing to the company’s revenue growth, while others are in their early stages and are unlikely to have a significant impact on top line. of Visa in the near future. However, together they represent a long-term view of the market.

The first is perhaps the most obvious: making it easy for consumers to buy cryptocurrencies, which has involved working with ‘drive acceptance’ wallets and exchanges. This area was mentioned in Visa’s latest earnings call as the second largest contributor to growth in its non-present card segment, excluding travel – the strongest growth has been the rise of e-commerce .

The second is a natural progression from the first: allowing the cryptocurrency to be cashed in fiat.

“We want to make sure that as a consumer, once you exit your cryptocurrency positions in exchanges and wallets, you can cash out on a Visa ID and then start spending on any of our over. 70 million merchant endpoints, ”explains Plecas.

While these two are in full swing, a more recent development is the third pillar, which is the use of digital currency APIs to allow banks and neobanks to add cryptocurrency options for their customers. This is still in its infancy, with US neobank First Boulevard becoming the pilot customer earlier this year, but Plecas points out that Visa is “looking to expand into other markets and regions” with the product.

“We quickly realized that there was potential to be the next generation of neobanks,” he explains. “They also do a lot of their treasury operations, paying vendors and employees already in stablecoins.”

To do this, the company needed to allow customers to “stay in their ecosystem when they have also settled their obligations” with Visa, where the fourth pillar, the settlement in stable coins, comes into play. This allowed Visa to settle its first transaction in a stablecoin, USDC pegged to the US dollar, this year.

“Moving to USDC is very similar to moving to USD,” he explains.

“What we have done is an upgrade of the existing treasury infrastructure operations to be able to receive these assets, as their reception is now via public blockchain rails. And as time changes, we want to support other stable coins. “

The final pillar, however, is the most long-term: central bank digital currencies (CBDCs). According to the Bank for International Settlements, 86% of the world’s central banks are now considering launching CBDCs in some form, with more than one in ten currently engaged in pilot projects.

CBDCs have a variety of benefits, including the ability to better reach the underbanked, and Visa argues that their implementation will require public-private partnerships.

“This way they will be integrated in the right way into the existing payment ecosystem,” explains Plecas.

“At Visa, we want to ensure that our products and services act as a bridge between our existing customers and new customers and the blockchains involved in digital currencies.”

Top five digital currency opportunities according to Visa

Potential in B2B payments

While much of this focuses on the consumer side of cryptocurrency and digital currencies, Visa also sees significant potential in B2B payments.

“B2B is a fast growing area of ​​great importance and interest to all of Visa. And we see that digital currencies can complement and complement some of the existing solutions that we have in the space, ”explains Plecas.

However, while digital currencies can impact the B2B space, and in some cases already do, wider institutional adoption will likely take time.

Nevertheless, in areas with weak infrastructure, the potential of CBDCs in particular is strong for B2B.

“In some countries the infrastructure is just not there yet, and for those types of countries and regions, digital currencies can complement what we already have.”

The cross-border opportunity

One area that comes up often in discussions about digital currency is cross-border payments, with many citing potential benefits in terms of speed and cost. However, Plecas stresses that while there is potential, this is not a simple, clean solution.

“The cross-border space is very complex and has a large number of players trying to solve the consumer experience in terms of price for the end user and time efficiency,” he said.

“It’s not easy to solve, even if you try new technologies that would theoretically give you advantages with this aspect.”

However, he says Visa sees particular opportunities in global markets that bring together buyers and sellers of different currencies.

“In these cases, potentially digital currencies can help them reach some of these markets faster and more profitably.”



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Coatue deposits $ 20 million directly into Pinwheel, a payroll API for neobanks – TechCrunch https://innovativewords.com/coatue-deposits-20-million-directly-into-pinwheel-a-payroll-api-for-neobanks-techcrunch/ https://innovativewords.com/coatue-deposits-20-million-directly-into-pinwheel-a-payroll-api-for-neobanks-techcrunch/#respond Wed, 02 Jun 2021 14:01:55 +0000 https://innovativewords.com/coatue-deposits-20-million-directly-into-pinwheel-a-payroll-api-for-neobanks-techcrunch/ One of the most strategically important financial relationships for neobanks is to become the destination of the account for a user’s paycheck. If you’re a bank and have that specific relationship, more and more people will be using this account for everything from daily spending to saving (after all, that’s where their money goes). This […]]]>


One of the most strategically important financial relationships for neobanks is to become the destination of the account for a user’s paycheck. If you’re a bank and have that specific relationship, more and more people will be using this account for everything from daily spending to saving (after all, that’s where their money goes). This activity in turn leads to many opportunities to sell other financial products to users and generate the kinds of fees that banks like to pay.

It turns out, however, that users are often confused as to how to change their direct deposit instructions. To do this, they still have to go to the old payroll systems, fill in the account and routing data, verify that they are correctly configured and much more, all steps that can confuse users who will simply give up. .

Reel is a “payroll connectivity” API designed to bridge this gap. It helps neobanks and other clients connect to a user’s payroll information system, offering everything from direct deposit transfer to income verification (a hot space these days) and related loans. paychecks.

It has proven to be very popular, especially amid the pandemic which has seen millions of people change jobs as well as neobanks reaching stratospheric growth as account holders sought cheaper and more flexible banking options. The company saw its revenue increase 11x last quarter and claims the current and mobile payment service Square Cash as customers.

This early pull attracted a new round of capital. Michael Gilroy of Coatue led a $ 20 million Series A in the business. Gilroy, who arrived at Coatue about two years ago from Canaan, has a long-standing interest in fintech, recently investing in companies such as B2B Melio debt platform, Quanto financial transaction API. and the neobank for teenagers Step.

In addition to Coatue, Primary Ventures and Semper Virens recently joined the round, and seed investors First Round Capital and Upfront Ventures have also joined the round.

We last featured Pinwheel a year ago with its $ 7 million funding round, exploring how the founders went from offering benefits to solving the more fundamental issue of connectivity in the world. pay. Co-founder Curtis Lee, who was then executive chairman and also venture capital partner at Primary Ventures, has since moved full-time to become president and chairman of the startup. He said the company has doubled its efforts in particular on direct deposit switching as a gateway to the rest of its API offerings.

“For us, it was really about picking one and using it as a wedge and then increasing from there,” Lee said. “Direct deposit transfer was the most urgent and top priority for all of our customers, mainly because there wasn’t much of an alternative. According to him, the company is becoming a market leader in this strategic niche. “In a quarter, we will be making almost half of all direct deposit transfers in the neobank market,” he said.

Pinwheel Co-Founders Anish Basu (CTO), Curtis Lee (Chairman and Chairman) and Kurt Lin (CEO). Image credits: Reel

Once a customer starts with direct deposits, they begin to migrate to other offerings, like paycheck loans. As low-cost neobanks strengthen their consumer base, they are frantically seeking sources of income to cover their massive growth. Credit is a rich target, and having direct access to payroll data can make it much easier to take out a loan.

Pinwheel has aggressively grown its team, growing from a small coterie a year ago to around 40 people. The company is reopening its offices today in New York’s Flatiron District, and Lee noted that the company is “remote friendly” and has about a third of its staff outside of the New York subway.

Among the notable hires, Lauren Crossett, formerly of Plaid and Quovo, has joined the company as a sales manager. The company has also signed a vice president of engineering, who will join it in the coming weeks.

In addition to institutional funds, a litany of individual investors joined the round, including Gokul Rajaram, Adam Nash, Jackie Reses, Raj Date, Tony Xu, Shishir Mehrotra, Amit Agarwal and Shiva Rajaraman.



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Belvo, LatAm’s response to Plaid, raises $ 43 million to scale its API for financial services – TechCrunch https://innovativewords.com/belvo-latams-response-to-plaid-raises-43-million-to-scale-its-api-for-financial-services-techcrunch/ https://innovativewords.com/belvo-latams-response-to-plaid-raises-43-million-to-scale-its-api-for-financial-services-techcrunch/#respond Tue, 01 Jun 2021 12:11:05 +0000 https://innovativewords.com/belvo-latams-response-to-plaid-raises-43-million-to-scale-its-api-for-financial-services-techcrunch/ Belvo, a Latin American startup that has built an open finance API platform, today announced that it has raised $ 43 million in a Series A funding round. A mix of venture capitalists and angel investors from Silicon Valley and Latin America participated in the funding, including Future Positive, Kibo Ventures, FJ Labs, Kaszek, MAYA […]]]>


Belvo, a Latin American startup that has built an open finance API platform, today announced that it has raised $ 43 million in a Series A funding round.

A mix of venture capitalists and angel investors from Silicon Valley and Latin America participated in the funding, including Future Positive, Kibo Ventures, FJ Labs, Kaszek, MAYA Capital, Venture Friends, the co-founder and President of Rappi Sebastián Mejía, Harsh Sinha, CTO of Wise (formerly Transferwise) and CEO and founder of Nubank, David Vélez.

Citing data from Crunchbase, Belvo believes the tour represents the largest A-Series ever raised by a Latin American fintech. In May 2020, Belvo raised a $ 10 million seed round co-led by the Silicon Valley Founders Fund and Argentina’s Kaszek.

Belvo aims to work with the leading fintechs in Latin America, spanning verticals such as neobanks, credit providers, and personal finance products that Latin Americans use on a daily basis.

The goal of the startup, with its API platform designed for developers, which can be used to access and interpret the financial data of end users, is to create better, more efficient and more inclusive financial products in America. Latin. Popular Neobank app developers, credit providers, and personal finance tools use Belvo’s API to connect bank accounts to their apps to unleash the power of open banking.

As TechCrunch editor-in-chief Alex Wilhelm explained in this piece last year, Belvo could be seen as similar to US-based Plaid, but more tuned to the Latin American market so that it can integrate a more diverse data set to better meet the needs of the various markets it serves.

Thus, while Belvo’s objectives are “similar to the overall objective[s] of Plaid, ”co-founder and co-CEO Pablo Viguera told TechCrunch that Belvo isn’t just starting a banking API business in the hope of connecting apps to financial accounts. Instead, Belvo wants to build a finance API, which collects more information than is normally collected by these systems. Latin America is massively underbanked and unbanked, so the more data from more sources the better.

“Basically we are pushing for similar results [as Plaid] in terms of when you think of open banking or open finance, ”Viguera said. “We are working to democratize access to financial data and allow end users to port that data and share that data with whoever they want.”

The company assumes that just because a significant number of the region’s population is underbanked does not mean that it is not yet financially active. Belvo’s goal is to link all kinds of accounts. For example, Viguera told TechCrunch that some companies in the concert economy in Latin America issue their own cards that allow workers to cash in at small local stores. Over time, all of these transactions are data that could be linked with the help of Belvo, creating a much larger network than we are used to nationally.

The company’s work to connect banks and non-banks with each other is key to the company’s goal of enabling “any fintech or developer to access and interpret users’ financial data.” according to Viguera.

Viguera and co-CEO Oriol Tintoré founded Belvo in May 2019, and it was part of Y Combinator Winter 2020 lot. Since launching its platform last year, the company claims to have built a customer base of more than 60 businesses across Mexico, Brazil and Colombia, handling millions of API calls monthly.

This is important because, as Alex noted last year, Like the other players in the API space, Belvo invoices each API call that its customers use (in this sense, it has a model similar to that of Twilio).

Image credits: Co-founders and co-CEOs Oriol Tintore and Pablo Viguera / Belvo

Additionally, over the past year, Belvo said it has extended its API coverage to over 40 financial institutions, giving businesses the ability to connect to over 90% of personal and business bank accounts in Latin America. , as well as tax authorities (such as the SAT in Mexico) and concert economy platforms.

“Essentially, we’re taking unstructured financial data that an individual might have outside of a bank, such as the integrations we have with gig economy platforms like Uber and Rappi. We can extract a driver’s information from their Uber app, which is sort of designed like a banking app, and turn it into meaningful banking information that third parties can use to make assessments as if it were data. from a bank, ”Viguera explained. .

The startup plans to use its new capital to expand its product offering, continue to expand its geographic footprint and double its current workforce to 70 people. Specifically, Belvo plans to hire more than 50 engineers in Mexico and Brazil by the end of the year. It currently has offices in Mexico City, São Paulo and Barcelona. The company also aims to launch its bank-to-bank payment initiation offering in Mexico and Brazil.

Belvo currently operates in Mexico, Colombia and Brazil.

But he sees “a lot of opportunity” in other Latin American markets, particularly Chile, Peru and Argentina, Viguera told TechCrunch. “In due course, we will look to continue our expansion there.”

Fred Blackford, founding partner of Future Positive, believes that Belvo represents “a real transformative opportunity for the region’s financial sector”.

Nicolás Szekasy, co-founder and managing partner of Kaszek, noted that the demand for financial services in Latin America is growing at an exponential rate.

“Belvo is developing the infrastructure that will allow both large institutions and the emerging generation of young players to successfully deploy their solutions,” he said. “Oriol, Pablo and the Belvo team have led the development of a sophisticated platform that solves very complex technical challenges, and the company’s exponential growth reflects how it delivers a product that perfectly matches the requirements. of the market. ”



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Would you like to bank with Afterpay? Why more brands offer bank accounts https://innovativewords.com/would-you-like-to-bank-with-afterpay-why-more-brands-offer-bank-accounts/ https://innovativewords.com/would-you-like-to-bank-with-afterpay-why-more-brands-offer-bank-accounts/#respond Tue, 01 Jun 2021 01:46:49 +0000 https://innovativewords.com/would-you-like-to-bank-with-afterpay-why-more-brands-offer-bank-accounts/ Steve Weston discusses BaaS at Intersekt. Image: http://www.bake.agency/ Dealing with a non-bank might be the norm sooner than you think. If your favorite brand started offering a bank account, would you change? This is the question Australians may have to start asking themselves as a new banking model allows you to open a bank account […]]]>


Steve Weston discusses BaaS at Intersekt. Image: http://www.bake.agency/

Dealing with a non-bank might be the norm sooner than you think.

If your favorite brand started offering a bank account, would you change? This is the question Australians may have to start asking themselves as a new banking model allows you to open a bank account with a business that is not a bank.

This new model, called Banking as a Service (BaaS), will allow businesses to use a bank’s license to offer financial products. This means that you will be able to open a bank account with your favorite brands and enjoy the same security as a traditional bank.

Volt Bank, the first of Australia’s new neobanks to be licensed as a bank, plans to allow other businesses to use the license to offer bank accounts.

Volt Bank CEO and founder Steve Weston believes this is the future of the bank.

“In the future, more of us will be banking with our preferred technology provider, retailer, air insurer, telco and fintech,” he told The Finder. “And they will want to offer banking products and have access to payment rails, but they don’t want to become a bank, so they will need banking partners like us.”

As a first step, Volt Bank is looking to work with partners who will have a Volt branded account. Subsequently, it will offer a white label option, in which companies can add their own branding to the account.

Banking partners

Volt Bank is not the first bank to look into BaaS. Westpac, one of Australia’s Big Four banks, also allows others to use its banking license to offer products. One company that will accept this project will be the Afterpay platform, which soon plans to offer a cash management account and a savings account.

“Afterpay customers will be able to use their new savings account to conduct the majority of their money management activities, including paying bills, withdrawing cash and budgeting,” says ASX’s announcement. ‘Afterpay.

Using Afterpay’s license and regulatory infrastructure, Afterpay will be able to offer a secure and comprehensive account without becoming a bank itself.

While this is still a relatively new concept, it is a concept that is happening in other markets as well. In the United States, Apple launched its credit card through Goldman Sachs and Google Partners With Banks To Provide Digital Bank Accounts Through Google Plex.

Weston believes these types of partnerships will become more common.

“We’ve always said the majority of Volt’s customers will go through partnerships,” he said. “And it was actually aimed at what customers would want and need from the banks in the future.”

Is it safe?

In Australia, bank deposits up to $ 250,000 are protected by a government guarantee. For this guarantee to apply, the bank must hold a banking license. As these companies offer licensed partner bank accounts, your money will also be protected.

Why do business with a non-bank?

The neobanks that have taken to Australia in recent years have all started with one common goal: to change the way people do their business. They do this in different ways, but common strategies include easy enrollment, a sleek account, no branches, low costs, and perks like insurance and reimbursement. Businesses that want to offer bank accounts want to do something similar.

Speaking to the financial reviewLee Hatton, executive vice president of Afterpay, says Afterpay bank accounts will be more like a shopping experience than a banking experience.

“We are not building another ‘me too’. There are some functions, like capturing a deposit and making payments, which are the same. But the experiences we are building around will be nothing like a bank or a neobank. “

Competitors in the space include Up Bank, which offers a transaction and savings account, as well as 86,400 which offers the same. Volt Bank currently has a beta testing savings account and a transaction account, Volt Pay, which it plans to launch to the public by 2021-2022.

No BaaS banking product has been released to the public so far, so it remains to be seen whether how Australian banks will be turned upside down or whether Australians will simply have more choices as to who to bank with.

To learn more about neobanks, including Volt Bank, check out our guide to neobanks or find out how Afterpay works in our review.



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Africa has another unicorn as Chipper Cash raises $ 100 million in Series C led by SVB Capital – TechCrunch https://innovativewords.com/africa-has-another-unicorn-as-chipper-cash-raises-100-million-in-series-c-led-by-svb-capital-techcrunch/ https://innovativewords.com/africa-has-another-unicorn-as-chipper-cash-raises-100-million-in-series-c-led-by-svb-capital-techcrunch/#respond Mon, 31 May 2021 05:01:20 +0000 https://innovativewords.com/africa-has-another-unicorn-as-chipper-cash-raises-100-million-in-series-c-led-by-svb-capital-techcrunch/ Fintech in Africa is a gold mine. Investors are betting big on startups offering a plethora of services ranging from neobank payments and loans, remittances and cross-border transfers, and Well Named therefore. Each of these services solves unique sets of challenges. For cross-border payments, these are the outrageous rates and regulatory hassles associated with carrying […]]]>


Fintech in Africa is a gold mine. Investors are betting big on startups offering a plethora of services ranging from neobank payments and loans, remittances and cross-border transfers, and Well Named therefore. Each of these services solves unique sets of challenges. For cross-border payments, these are the outrageous rates and regulatory hassles associated with carrying out transactions from one African country to another..

Chipper Cash, a three-year startup that facilitates cross-border payments across Africa, closed a $ 100 million Series C round to introduce more products and grow its team.

It wasn’t that long ago that Chipper Cash was in the news for the last time. In November 2020, the African cross-border fintech start-up raised $ 30 million in Series B led by Ribbit Capital and Jeff Bezos fund Bezos Expeditions. This was after the closing of a $ 13.8 million Series A round from Deciens Capital and other investors in June 2020. As a result, Chipper Cash went through three rounds totaling $ 143.8 million in one. year. However, when the $ 8.4 million raised in two rounds of funding in 2019 is included, that number rises to $ 152.2 million.

SVB Capital, the investment arm of the American high-tech commercial bank Silicon Valley Bank led this series C. Other participants in this cycle include existing investors – Deciens Capital, Ribbit Capital, Bezos Expeditions, One Way Ventures, 500 startups, Tribe Capital and Brue2 Ventures.

Chipper Cash Was launched in 2018 by Serunjogi ham and Maijid Moujaled. The couple met in Iowa after coming to the United States for studies. Following their stint with big names like Facebook, Flickr and Yahoo !, the founders decided to work on their own startup..

Last year, the company that offers free mobile services, P2P payment services, was present in seven countries: Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa and Kenya. Now it has expanded to new territory outside of Africa. “We’ve expanded into the UK, it’s the first market we’ve expanded outside of Africa,” CEO Serunjogi told TechCrunch.

In addition and as a sign of growth, the company, which has more than 200 employees, plans to increase its workforce by hiring 100 employees throughout the year.. The number of users on Chipper Cash has risen to 4 million, up 33% from last year. And WAlthough the company averaged 80,000 transactions per day in November 2020 and processed a payment value of $ 100 million in June 2020, it is unclear what those numbers are now as Serunjogi has declined to comment on them, including his income..

When we announced their Series B last year, Chipper Cash wanted to offer more business payment solutions, cryptocurrency trading options, and investment services.. So what has been the progress since then? “We launched card products in Nigeria and we also launched our crypto product. We are also soon launching our US equity product in Uganda, Nigeria and a few other countries, ”replied Serunjogi..

Crypto is widely adopted in Africa. African users are responsible for a significant portion of the transactions that take place on some global crypto-trading platforms.. For example, African users accounted for $ 7 billion of Luno’s $ 8.3 billion total trade volume. Binance P2P users in Africa too increased by 2000% in the last five months as their volumes have increased by over 380%.

Individuals and small businesses in Nigeria, South Africa and Kenya account for the bulk of crypto activity on the continent. Chipper Cash is active in these countries and seize this opportunity is essentially An evidence. “Our approach to product growth and product addition is based on what our users find valuable. As you can imagine, crypto is a technology that has been widely adopted in Africa and many emerging markets. So we want to give them the power to access crypto and to be able to buy, hold and sell crypto at any time, ”added the CEO.

However, its crypto service is not available in Nigeria, Africa’s largest crypto market. The reason for this is the Central Bank of Nigeria (CBN) regulations on crypto activities in the country prohibiting users from converting fiat to crypto from their bank accounts.. To survive, most of the crypto players have adopted P2P methods but Chipper Cash does not offer this. one againAccording to Serunjogi, the company “looks forward to any development in Nigeria that would allow it to be offered freely again. “

The same goes for the investment service Chipper Cash plans to roll out soon in Nigeria and Uganda. Currently, Nigeria’s financial market regulator, SEC, oversees local investment platforms and brings their activities under its jurisdiction. Chipper Cash will not be exempt when the product is powered on in Nigeria and has started to engage regulators to be ahead of the curve.

“As fintech explodes and innovation continues to advance, consumers need to protect yourself. We invest millions of dollars every year in our compliance programs, so I think job closely with regulators directly so that these products are offered in a consistent manner is important,Serunjogi noted.

Six billion dollar companies in Africa; the fifth fintech unicorn

During our call, Serunjogi made some remarks about Nigeria’s central bank that resemble comments from Flutterwave CEO Olugbenga Agboola in March..

While acknowledging the central banks of Kenya, Rwanda and Uganda for creating enabling environments for innovation, he said: “Nigeria has Probably Africa’s most exciting and dynamic tech ecosystem. And that’s the credit directly to the CBN to create and foster an environment that has enabled many startups like us and others like Flutterwave to thrive. ”

Most fintechs would argue that CBN is stifling innovation, but comments from the two CEOs seem to suggest otherwise. From any indication, Chipper Cash and Flutterwave strive to be on the right side of the country’s umbrella banking policies and regulations. That’s why they’re one of the fastest growing fintechs in the region and also billion dollar companies.

Obviously, we do not enter into our evaluation, but we Probably the most valuable private startup in Africa today after this round. It is therefore a reflection of the environment that regulators like CBN have created to enable innovation and growth, Serunjogi commented when asked about the valuation of the company.

Until last week, the only private unicorn startup in Africa this year was Flutterwave. Then, OPay, fintech supported by China and focused on Africa the company is said to be raising $ 400 million for a valuation of $ 1.5 billion. If Serunjogi’s comment has anything to say, Chipper Cash is currently valued between $ 1-2 billion, joining the exclusive $ 1 billion club..

But to be sure, I asked Serunjogi again if the company was indeed a unicorn. This time he gave a more cryptic answer. “We do not comment on the size of our assessment publicly. One of the things that interests me a lot internally and externally is that the valuation of our company has not been a priority for us. It is not a goal that we aspire to achieve. For us, what motivates us is that we have a product that has an impact on our users. “

Maijid Moujaled (CTO) and Ham Serunjogi (CEO)

Serunjogi added that this investment materializes the importance of having a strong balance sheet and integrating SVB Capital and that doubling existing investors is one means to this end.. According to him, a solid balance sheet provide the necessary infrastructure to support key long-term investments that will translate into more attractive products in the future.

“We see our investors as key business partners. So having very strong partners around the table makes us a stronger company. They are partners who can invest in our business and we can also learn from them many other ways, ”he said of investors backing the three-year company.

Much like Ribbit Capital and Bezos shipments in last year’s Series B, this is SVB Capital’s first foray into the African market.. In an email, SVB Capital Managing Director Tilli Bannett confirmed the fund’s investment in Chipper Cash. According to him, the venture capital firm invested in Chipper Cash because it created a simple and accessible way for people living in Africa to meet their financial needs through improved products and user experiences..

“As a result, Chipper has had a phenomenal trajectory of consumer adoption and volume across the product.. We are excited to the role Chipper has forged in fostering financial inclusion across Africa and the vast potential that still awaits us, ”he added.

Fintech remains the positive point of African technological investment. In 2020, the sector represented more than 25% of the nearly $ 1.5 billion raised by African startups. That number will likely increase this year, as four startups have already raised $ 100 million: TymeBank in February, Flutterwave in March, OPay and Chipper Cash in May.. All of them except TymeBank are now valued at over $ 1 billion, and this is the first time Africa has seen two companies or more than $ 1 billion in a year.. more at Jumia (e-commerce), Interswitch (fintech) and Fawry (fintech), the continent now has six billion dollar tech companies.

Here is another interesting piece of information. The time frame in which startups reach this benchmark appears to be getting shorter. While it took Interswitch and Fawry seventeen and thirteen years respectively, it took Flutterwave five years; Jumia, four years old; then OPay and Chipper Cash three years.



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Neobank Paybby to Bring Crypto Investing to Black and Brown Communities https://innovativewords.com/neobank-paybby-to-bring-crypto-investing-to-black-and-brown-communities/ https://innovativewords.com/neobank-paybby-to-bring-crypto-investing-to-black-and-brown-communities/#respond Fri, 28 May 2021 12:48:00 +0000 https://innovativewords.com/neobank-paybby-to-bring-crypto-investing-to-black-and-brown-communities/ Wicket by Paybby, a challenger bank offering services targeted at black and brown communities, has announced its intention to launch a cryptocurrency investment on its platform this summer. Paybby, which started out as a marketer to help underserved people access Paycheck Protection Program (PPP) loans, began offering banking services this year after purchasing Wicket in […]]]>


Wicket by Paybby, a challenger bank offering services targeted at black and brown communities, has announced its intention to launch a cryptocurrency investment on its platform this summer.

Paybby, which started out as a marketer to help underserved people access Paycheck Protection Program (PPP) loans, began offering banking services this year after purchasing Wicket in Overland Park. , Kansas for an undisclosed amount in January 2021.

The neobank partners with Radius Bank to offer free savings and chequing accounts insured by the Federal Deposit Insurance Corp. (FDIC) and early access to direct deposits. It also has an automatic savings tool.

The notion of crypto offerings is attracting a lot of interest from the startup’s clients – something Paybby’s chief marketing officer, Miranda Tan, initially said as a surprise.

Paybby is partnering with several cryptocurrency exchange companies to add their services to its app, Tan said.

The neobank allows its clients to register as beta testers for its crypto investment product. It also plans to distribute digital tokens to beta testers via crypto “airdrops”, a popular crypto marketing technique used to generate interest in a particular token.

Paybby’s expansion into crypto comes as growing interest in the space leads financial institutions to decide which side of the digital asset fence they want to stand on.



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Neobanks Market Size Current and Future Industry Trends, 2020-2025 https://innovativewords.com/neobanks-market-size-current-and-future-industry-trends-2020-2025/ https://innovativewords.com/neobanks-market-size-current-and-future-industry-trends-2020-2025/#respond Fri, 28 May 2021 12:06:42 +0000 https://innovativewords.com/neobanks-market-size-current-and-future-industry-trends-2020-2025/ Market Study Report LLC adds a Global Neobanks market study providing the latest industry data and covering future trends, enabling you to identify products and end users that are driving revenue growth and profitability. The industry report lists the major competitors and provides information on the industry’s strategic analysis of the key factors influencing the […]]]>


Market Study Report LLC adds a Global Neobanks market study providing the latest industry data and covering future trends, enabling you to identify products and end users that are driving revenue growth and profitability. The industry report lists the major competitors and provides information on the industry’s strategic analysis of the key factors influencing the market.

The recent research report on the Neobanks market offers a generalized assessment of market trends, as well as factors affecting the expansion of the market during the study period. It also incorporates details relating to market segmentations and leading manufacturers. The report also assesses market drivers and opportunities. Additionally, the research report includes factors which may restrain the growth of the Neobank market during the analysis period.

Request a Sample Neobank Market Report from: https://www.marketstudyreport.com/request-a-sample/2738826?utm_source=algosonline.com&utm_medium=SK

Further, the report provides notable data based on the impact of COVID-19 on the market scenario.

Important Features of the Neobanks Market Report:

    • Atom Bank
    • Monzo Bank
    • Fidor Group
    • Movencorp
    • Ubank
    • Simple financial technology
    • Holvi bank
    • Pockit
    • N26
    • MyBank (Alibaba Group)
    • Soon Bank
    • Jibun
    • WeBank (Tencent Holdings Limited)
    • Bank K
    • Digibank
    • Rocket bank
    • Hello Bank
    • Jenius
    • Timo
    • Koho Bank
    • Kakao Bank
    • Starling Bank
    • Tandem Bank

    are the established companies that shape the competitive landscape of the neobank market.

  • Basic information about the company, their manufacturing base, and major competitors are listed in the report.
  • In addition, financial highlights such as total revenues raised by each company presented in the report are studied.
  • The report also highlights the products and services offered by each company mentioned in the report.
  • Each company’s market share is also listed in the report.
  • The product line of the neobank market is ranked in terms of
    • Own banking license
    • In partnership with a traditional bank

    .

  • Based on the spectrum of applications, the report divides the neobank market into
    • Personal consumers
    • Business companies

    .

  • The report includes important information related to the market share, revenue generated, product price, and sales recorded based on the terrain of the application.
  • The report includes details related to dealers, traders, types of sales channels – its pros and cons, and distributors operating in the Neobank market.

Request a discount on the Neobanks market report at: https://www.marketstudyreport.com/check-for-discount/2738826?utm_source=algosonline.com&utm_medium=SK

An overview of the regional analysis of the Neobanks Market:

  • North America, Europe, Asia Pacific, South America, Middle East, and Africa are the segments of the Neobank market based on the regional analysis.
  • The report breaks down the regional hierarchy into an in-depth analysis by country.
  • The essential information related to the recorded sales, market share and revenue generated by each region is incorporated into the report.
  • The estimated growth rate that each region is expected to experience over the duration of the study is shown in the report.

Strengths of the neobank industry:

  1. Market share of neobanks by the main players: Here, the analysis of capital, revenue and prices by the company is included along with other sections such as expansion plans, assisted areas, products offered by major manufacturers, the alliance and the acquisition and delivery to headquarters.
  2. Global growth trends: Industry trends, growth proportion of major producers, and production analysis are the segments included in this chapter.
  3. Market Size by Application: This segment includes Neobank Market Consumption Analysis by Application.
  4. Neobank Market Size by Type: It includes analysis of product value, utility, market percentage and production market share by type.
  5. Manufacturer Profiles: Here, the major players of the Global Neobanks Market are studied on the basis of sales area, key products, gross margin, revenue, price, and production.
  6. Market value chain analysis and neobank sales channels: It includes analysis of customers, distributors, market value chain and sales channels.
  7. Market forecast: This section is obsessed with Production and Production Value Forecast, Major Producer Forecast by Type, Application and Regions

For more details on this report: https://www.marketstudyreport.com/reports/global-neobanks-market-2020-by-company-regions-type-and-application-forecast-to-2025

Related reports:

1. Global Hospital Management System Software Market 2020 by Company, Regions, Type and Application, Forecast to 2025
Read more: https://www.marketstudyreport.com/reports/global-hospital-management-system-software-market-2020-by-company-regions-type-and-application-forecast-to-2025

2. Global LIMS Software and Laboratory Information System Market 2020 by Company, Regions, Type and Application, Forecast to 2025
Read more: https://www.marketstudyreport.com/reports/global-lims-software-laboratory-information-system-market-2020-by-company-regions-type-and-application-forecast-to-2025

Related report: https://www.marketwatch.com/press-release/automated-dispensing-machines-market-segmentation-growth-assessing-major-growth-opportunities-by-2025-2021-05-27

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5 personal loan trends that will prepare India for the future https://innovativewords.com/5-personal-loan-trends-that-will-prepare-india-for-the-future/ https://innovativewords.com/5-personal-loan-trends-that-will-prepare-india-for-the-future/#respond Fri, 28 May 2021 09:25:00 +0000 https://innovativewords.com/5-personal-loan-trends-that-will-prepare-india-for-the-future/ May 28, 2021 6 min read Opinions expressed by Contractor the contributors are theirs. You are reading Entrepreneur India, an international Entrepreneur Media franchise. Over the past decade, the banking and financial sector has changed dramatically, with the industry integrating advanced technologies into its day-to-day operations. The increased proliferation of the internet and the use […]]]>


May 28, 2021

6 min read

Opinions expressed by Contractor the contributors are theirs.


You are reading Entrepreneur India, an international Entrepreneur Media franchise.

Over the past decade, the banking and financial sector has changed dramatically, with the industry integrating advanced technologies into its day-to-day operations. The increased proliferation of the internet and the use of smartphones have paved the way for a paradigm shift in the way people and financial institutions interact with each other. Technology has simplified the banking process to a great extent and this ease of banking and financial services has also been reflected in the borrowing behavior of Indian customers. One of the most significant changes observed concerns the personal loan market.

According to data from RBI (Reserve Bank of India), there has been a 26.9% increase in the number of personal loans over the past year. Like other financial services, the personal loan segment has been grown thanks to digital services and the rise of instant loan startups. Since the start of the pandemic, like other segments, the personal loan market has also undergone a massive, albeit positive, transformation.

As the country began to crawl towards recovery from the first wave and subsequent lockdowns, a disastrous second wave of the pandemic has struck. Declining economic activity and lockdowns imposed in several states have once again prompted many people to turn to instant loans to avoid a financial crisis. Even as this scenario continues, the personal loan market is witnessing the emergence of multiple trends which are sure to shape the future of the segment and prepare India for the future. Here are 5.

Increased demand for digital lending channels

As mentioned earlier, technology has been instrumental in the change in the personal lending segment and platforms have jumped on the digitalization bandwagon. Considering the convenience that digital platforms offer, there has been a massive adoption spike, especially over the past year or so. Lending platforms are already taking advantage of technology and increased internet penetration to create fast, secure and easy-to-use applications / infrastructure, thereby digitizing the entire loan application and approval process. .

Unlike traditional institutions and processes, digital lending platforms follow a seamless and risk-free approach to borrower and lender with features like KYC registration, digital credit history, and more. Soon lending will be revolutionized by digital transformation into the low income segment where the true potential of technology will be unleashed, enabling people to avail personal loans through platforms of a full nature.

The rise of NBFCs

Until recently, it is the traditional financial institutions such as banks or informal sources of credit that people turn to for personal loans. The problem, however, is that banks need a lot of paperwork to fill out and the loan approval process can take a long time, even months in some cases. Also, when it comes to personal loans, banks often require borrowers’ monthly / annual income to be above a certain level, which makes it difficult for low income people to qualify for bank loans. When it comes to informal sources of credit, for example money lenders, borrowers are often charged unreasonably high interest rates, which ultimately leads them to fall into the debt trap. However, with NBFCs, especially instant loan applications, the scenario is different.

NBFCs cater to the low income segment of the population, charge reasonable interest rates, have a transparent process, and also offer low cost personal loans. The past few years have seen the country’s NBFCs climb to the top of the personal loan market, with their market share increasing from 22.68% in March 2018 to 44.92% in March 2020 according to the Credit Information Bureau. Through convenience, fluidity and transparency, NBFCs have managed to rapidly expand their borrower base in a short period of time.

When speaking of NBFCs, it is important not to overlook an emerging category of financial service providers – neobanks. A fully digital bank with no branches, neobanks are a wide range of financial service providers that crave today’s savvy customers. Neobanks take a less confrontational approach in positioning their offering vis-à-vis traditional banks and are rapidly gaining ground for faster customer acquisition and consumer appeal. While neobanks are still at an early stage in India, it is predicted that they will soon become a go-to solution offering multiple services including personal loans under one roof.

Lenders adopt new-age underwriting

Today, in addition to financial and credit history, lending platforms have adopted new-age data collection methods such as borrower’s digital footprint, mobile data, etc. to get in-depth information about their repayment capacity and their behavior. This allows them to bypass conventional data points or even process loan requests when conventional data is insufficient.

In addition, today’s lenders use advanced AI and ML-based underwriting models as opposed to the human-centric pen-and-paper underwriting which relied on the ability to evaluate. subjective of the human underwriter compared to new age models which are more objective and robust. While this conservative appetite will prevail in the near term, the long-term outlook for the Indian lending segment is still optimistic given the huge credit penetration gap.

Greater preference for non-Tier I markets

With the surge in digital adoption, people across the country, especially those in Tier II, III, and IV cities, and even hinterlands can access digital lending channels. In fact, a recent report published by the Internet and Mobile Association of India (IAMAI) and Nielsen showed that rural India has slightly more Internet users than urban India, further facilitated by very affordable data prices. And as lenders can now access clients in these areas, the focus will be on non-Tier I markets, as these markets have historically demonstrated good credit repayment behavior, making them lucrative and facilitating broader scope for lending platforms.

Wide range of loan products

During this time, the standard personal loan was the only product available. However, with the changing times and the rise of digital payments and technology-enabled financial services, credit cards came into play. Then came cashier financing, virtual credit cards and consumer products. line. In addition, the personal loan segment has also witnessed the introduction of specific products for use cases such as tuition financing etc. With the consumption of the personal loan segment expected to experience explosive growth, there will be more credit products added in the future.

The lending landscape has changed a lot over the years and applying for a personal loan is now a quick and easy process that will see the money deposited into your account in just a few hours. With the increasing adoption of technology and increasing competition in the market, the personal loan segment will continue to evolve and adapt to changing scenarios.

Besides these, there is yet another element that has gained immense traction in recent times: cryptocurrency. Over the next decade, crypto will become a defining trend in the FinTech industry and we will see the dawn of new credit products such as cryptocurrency-based lending over the next 5-10 years. In fact, portals such as Aave, Compound and Yearn in the western market have already introduced this concept. The aforementioned trends are expected to continue for the foreseeable future, setting the stage for the personal loan market.



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