Category: digital banking

One banks $40M to offer ‘all-in-one’ financial services to the middle class



One, a startup that aims to bring “all-in-one banking” to the middle class, announced today that it has raised $40 million in a Series B round of funding.

Progressive Investment Company (the insurance giant’s investment arm) led the round, which included participation from Obvious Ventures, Foundation Capital, Core Innovation Capital and others. The financing brings One’s total raised since its 2019 inception to $66 million.

Since making its product generally available in September of 2020, Northern California-based One has grown to have “hundreds of thousands” of customers, according to CEO and co-founder Brian Hamilton, who previously co-founded PushPoint (which was acquired by Capital One).

“Stretched middle-income households and working families deal with financial stress on a daily basis and are largely unsupported by current offerings,” Hamilton said. “This can be viewed as a kind of a noisy market, and so this funding has been a good validation of the vision and kind of the products, in that we have been able to stand out in that market.”

Over the past 11 months, the startup has worked to enhance its core product offering, launching overdraft protection, an auto-save feature that rewards automatic savings contributions at 3.00% APY, cash flow-based credit lines and a credit builder product to help its customers build financial health. One claims that it has helped its users automatically save over $2 million collectively since its launch, a number that grows daily, according to Hamilton.

The company is also trying to change up how people share (Read more...)

Ribbit Capital leads $26.7M round for Brazilian fintech Cora



Cora, a São Paulo-based technology-enabled lender to small-and-medium-sized businesses, has raised $26.7 million in a Series A round led by Silicon Valley VC firm Ribbit Capital.

Kaszek Ventures, QED Investors and Greenoaks Capital also participated in the financing, which brings the startup’s total raised to $36.7 million since its 2019 inception. Kaszek led Cora’s $10 million seed round (believed at that time to be one of the largest seed investments in LatAm) in December 2019 with Ribbit then following.

Last year, Cora got its license approved from the Central Bank of Brazil, making it a 403 bank. The fintech then launched its product in October 2020 and has since grown to have about 60,000 customers and 110 employees.

Cora offers a variety of solutions, ranging from a digital checking account, Visa debit card and management tools such as an invoice manager and cashflow dashboard. With the checking account, customers have the ability to sending and receive money as well as pay bills digitally.

This isn’t the first venture for Cora co-founders Igor Senra and Leo Mendes. The paid had worked together before — founding their first online payments company, MOIP, in 2005. That company sold to Germany’s WireCard in 2016 (with a 3 million customer base) and after three years the founders were able to strike out again.

Cora co-founders Léo Mendes and Igor Senra; Image courtesy of Cora

With Cora, the pair’s long-term (Read more...)

Digital banking solutions provider Meniga closes additional €10M investment



Meniga, the London fintech that provides digital banking technology to leading banks, has closed €10 million in additional funding.

The round is led by Velocity Capital and Frumtak Ventures. Also participating are Industrifonden, the U.K. Government’s Future Fund and existing customers UniCredit, Swedbank, Groupe BPCE and Íslandsbanki.

Meniga says the funding will be used for continued investment in R&D, and in particular further development of green banking products — building on its carbon spending insights product. In addition, the fintech will bolster its sales and service teams.

Headquartered in London but with additional offices in Reykjavik, Stockholm, Warsaw, Singapore and Barcelona, Meniga’s digital banking solutions help banks (and other fintechs) use personal finance data to innovate in their online and mobile offerings.

Its various products include a software layer that bridges the gap between a bank’s legacy tech infrastructure and a modern API, making it easier to build consumer-friendly digital banking experiences. The product suite spans data aggregation technologies, personal and business finance management solutions, cash-back rewards and transaction-based carbon insights.

Meniga tells TechCrunch it has experienced a significant increase in the demand for its digital banking products and services over the past year. This has seen the fintech launch a total of 18 digital banking solutions across 17 countries.

Image Credits: Meniga

Helping fuel that demand is the need for banks to attract and retain a generation of customers that increasingly care about sustainability and the need (Read more...)

New challenger Ikigai combines digital banking and wealth management



Ikigai, a London fintech founded by former McKinsey partners, thinks there’s room in the crowded challenger market for a new premium offering that combines digital banking with wealth management.

Targeting future and present high-net-worth individuals, Ikigai is iOS-only for now and consists of a current account and savings account, with adjacent wealth management features, all combined in a single app and card. The thesis, says the founding team, is that currently there is very little on the market that provides a modern digital-first banking experience and the kind of premium banking services typically offered by legacy banks to their more affluent customers.

“Our typical client is young — usually in their late twenties or thirties,” explains Ikigai co-founder Edgar de Picciotto. “They’re entering their prime spending and earning years, and are looking to secure their financial future. Although they’re not high-net-worths yet, they have aspirations and goals — and they want to do more with their money”.

Rather than a freemium model, Ikigai charges a flat subscription fee from the get-go, and new users gain access to a relationship manager, which differentiates it from most digital-first banking. Features include an “everyday” spending account, and a saving section of the app, dubbed “nest”. The latter is separate from the spending account, including having its own account number, but can be easily topped up from the everyday account.

So far, quite me-too, you might conclude. However, where some more differentiation arguably comes into play is that (Read more...)

Sweden-based digital bank Northmill raises $30M



Northmill Bank, the Sweden-based challenger that has around 200,000 customers across three European countries, has raised around $30 million in new funding.

Leading the round is M2 Asset Management, the Swedish investment company controlled by Rutger Arnhult, and asset management firm Coeli. The injection of cash will be used for continued geographical expansion and to accelerate the development of new products. Notably, this will include plans to launch in 10 new markets as Northmill aims to step on the gas. Next stop, Norway.

As it stands, 2006-founded Northmill is available in Sweden, Norway and Finland, where it competes with incumbent banks with physical branches and the likes of Lunar, Revolut and Klarna (which operates as a bank in its home country of Sweden, and Germany).

More adjacent, another competitor is Anyfin, which is similar to Northmill’s “Reduce” product, which promises to help customers consolidate their existing loans/credit and lower their interest payments. “Our fastest-growing product and main driver today is Reduce, which lowers people’s interest on existing credits, part-payments and credit cards,” explains a Northmill spokesperson.

Founded nearly 15 years ago and originally operating as a credit provider, in 2019 Northmill secured a full banking license, regulated by the Swedish Financial Supervisory Authority. The bank employs 150 people and offers savings, credits, payments and insurances. More generally, it has taken a different and slower path than most of the newer crop of challengers in Europe, relying less on investment to fuel its growth and (Read more...)