Decades ago, people could recognize the best banks for their well-trained employees. They delivered exceptional services to customers in the luxury branches. But today, especially during the COVID-19 pandemic, consumers do not need bank branches or face-to-face services like even one year ago. For example, in the US market, digital and contact-less financial activities increase almost twice after quarantine begins. Such circumstances drive the rise of the neo bank industry even faster.
Today best digital banks have become top challenger banks. They can offer citizens financial products that will have more benefits than traditional financial institutions with physical branches. Top digital banks organize a new approach to banking. They do not need branches. They reduce costs assigned for employees’ wages. Thet provides easier paperless and transparent processes that, for example, allow a consumer to get a loan faster. The cutting-edge technology makes the user experience more satisfying. Technology rewards digital banks with additional scores if compared with traditional finance institutions.
Starling bank set a motto: changing banking for good and set a goal to support customers and their money through coronavirus. This personal and business banking solution is designed for the way we live today. Starling allows thousands of businesses to skip the admin and stay on top of their finances. Besides offering customers simple and safe managing of their money, the bank also takes social responsibility for the environment. When customers seed the digital plant, the bank, together with partners, seeds a real plant. The headquarters is in London, United Kingdom. The total funding of the Starling bank, raised in eight rounds, is £363 million. Among the six investors of the company are Merian Chrysalis and JTC Group.
Tandem Money offers a guaranteed interest rate for a set period of time to help clients save money. Funds will be digitally secured and protected by the FSCS. Application has a tool that supports people to automatically send free money to saving accounts. Of course, such an approach, when a consumer can manage finances from home, is more pleasant than going to the branch. People can feel they control their own financial activity, growth, and future. Tandem bank was established in 2015, but the latest funding was in March 2020. This startup was founded by 11 investors, including Qatar Investment Authority and Convoy Global Holdings. The total funding amount is £134.3 million.
Monese offers its clients to open an account and use the opportunity to conduct financial operations like spending, sending, and saving in minutes. Customers have a chance to spend money in different countries like locals. Monese opens accounts in multiple currencies. Moreover, users are supported by the Faster Payments network, which requires no fees. Monese is available in 30+ countries in the European Economic Area and carries over 2 million customers. Monese has raised a total of $80.4 million and 20 investors fund it. Augmentum Fintech and Tera Ventures are among them.
Zero is modern banking that combines a debit-style functionality with credit card rewards. A Zero bank provides the customer with a credit card, a checking account, and an app that combines them both. This neo bank has a valuable idea that targets millennials. It solves the hesitance of the young generation to sign up for credit cards. Zero’s design feels clean and simple compared to the cluttered and dated apps from traditional banks, TechCrunch wrote. The USA-based Zero bank raised 147 million in five rounds, and the latest funding was in February 2020. The company has eight investors, including New Enterprise Associates and Neuberger Berman Group.
Point Card is an innovative banking application that adapts to customers’ needs. For instance, the Point Card covers out-of-pocket expenses if the clients’ trip was canceled, providing cancelation insurance. This fintech solution offers rewards to every account user. Both physical and digital cards can satisfy contemporary cunsomers’ expectations in safe banking operations, transparent money management, and easy use. The total funding of San Francisco (California, United States) based company is $12 million. In the last funding round, which was series A, Point got $10,500,000 from eight investors. Among them was Y Combinator and Chapter One Ventures.
NorthOne bank target is a business. The motto of the bank is that it takes the hard part of running your business easier to help you serve your communities. NorthOne offers simple access to instruments business use every day. Customers can open a business account here for a few minutes and save valuable time. Moreover, NorthOne promises its clients o that they can never visit the bank branch again. On the other hand, every consumer has real human support. But the main advantage of the NorthOne is they assist business people to concentrate on what really matters. NorthOne has raised $23.3 million in 4 rounds from 8 investors. The most recent investors were Redpoint and Conconi Growth Partners.
Wingocard is a simplified banking service for children and teens who rely on their parents for money. It is designed to teach teens the cashless economy and strengthen their financial literacy skills. So it can become one of the top digital-only banks while planning to attract the young generation to banking. The product allows parents to transfer money and control spending. Wingocard is a company with Seed Funding. It raised $2 Million in July 2020 and already has 50,000 new users on its waiting list. This financial startup is based in Montréal, Quebec, Canada, and was founded in 2019.
FairMoney represents itself as the mobile banking revolution for emerging markets. It raised €14,000,000 in four rounds. Among their investors are Flourish Ventures, Newfund, DST Global partners, and SpeedInvest. The vision of FairMoney is to give access to money for people in developing markets. The idea is to reach Africa and South-East Asia. Due to this, 2.5 million+ loans were given in recent years by FairMoney. The startup is also working for users without smartphones. They can transfer money through SMS.
MyMy Bank is Malaysia’s first real multi-currency account and card. It is a fintech working in banking and financial services. The company has raised a total of A$1.5 million in funding over a Seed round raised in Jun 2018. MyMy focusing on financial inclusion and digital payments. It ensures that its card can be used globally on the MasterCard/VISA network. Through their digital banking, MyMy provides people with financial inclusion. Also, MyMy account gives access to instant currency exchange with no hidden fees.
TymeBank is a digital-only personal bank, based in Johannesburg. It does not have physical bank branches. Tyme runs its core-banking system in the cloud, firstly in South Africa. The absence of physical bank branches helps Tyme rich 11 million unbanked South Africans. Service provides them with access to banking services. TymeBank offers a transaction account, savings account, and an educational App. Moreover, fintech products include money transfer services and loans to small and medium businesses. In November 2019, the bank reached one million customers. The total funding of the banking company is $71.2 million, raised in two rounds. The main investor is the African Rainbow Capital.
As we can see, the number of reliable mobile-only banks is growing every year. They replace some traditional bank institutions and take customers from them to the digital world of simple banking.
We at Kindgeek follow the latest fintech industry trends. Our company has the first-hand experience in the field of finance technology. We have worked with different business models for various platforms and countries. For example, for the UK, we created HyperJar, a fintech finance management tool that provides a user with a network of mini-accounts. Each of them suits the user’s plans, lifestyle, and relationships.
We also provide our own solutions, such as a white label banking platform, which serves as a foundation for digital finance products. The customizable white-label core allows you to build on top of it and create a unique customer experience. No need to start from scratch – go to market quickly and cost-effectively.
So if you are looking for a trusted fintech partner to build your own digital banking platform from scratch or through a white label fintech solution, consider Kindgeek.
The topic of the gateways is a little more complicated and interesting than it seems.…
The rise of Buy Now, Pay Later (BNPL) services has disrupted the traditional lending landscape,…
Introduction or “What problem are we solving?” This article aims to illustrate how to create…
In today's fast-paced digital world, providing exceptional customer experience is crucial for businesses to stay…
It`s no secret that many parts of our lives become digital, and banking is no…
We discuss 5 top machine learning use cases in Finance and Banking industries to shed…