Latest news with #neobank
Finextra
04-06-2025
- Business
- Finextra
ABN Amro targets young customers with new neobank
The team behind ABN Amro's Tikkie payments app has developed a full-service neobank designed for young people. 1 Launching later this year, Buut has been "developed entirely around the world as young people experience it," claims Dutch bank ABN Amro. It was built from the ground up in 12 months by the team behind Tikkie, the hugely popular payments app with millions of users. Annerie Vreugdenhil, chief commercial officer, personal and business banking:, ABN Amro, says Buut is "easy to use, interactive, 100% visually driven and totally at home in the world of the new generation. "Buut is everything you expect of a bank, but designed to Tikkie a different box."
Zawya
02-06-2025
- Business
- Zawya
PalmPay Ranked Top Fintech and #2 Overall in the Financial Times Fastest-Growing Companies 2025 List
PalmPay ( a leading neobank and fintech platform focused on emerging markets, has been recognised as the fastest-growing financial services company in the Financial Times' Fastest-Growing Companies in Africa 2025 list, compiled in collaboration with Statista. PalmPay placed #2 overall out of 130 companies featured in this year's list. The annual ranking evaluates Africa-based businesses based on key performance indicators such as revenue growth, user adoption, and operational scale. From 2020 to 2023, PalmPay achieved a compound annual growth rate (CAGR) of 583.6% - a result of scaling tech-enabled financial services in Nigeria. With over 35 million registered users and up to 15 million daily transactions as of 2025, PalmPay has emerged as a key player in the digital transformation of Africa's economy. 'The Financial Times' recognition of PalmPay as Africa's fastest-growing fintech is a powerful validation of our approach to closing financial access gaps in underserved markets', said Sofia Zab, Founding Chief Marketing Officer at PalmPay. 'We've combined cutting-edge technology with localised innovation and distribution to build a leading neobank used by tens of millions to access payments, credit, savings, insurance and more. As we expand our ecosystem and enter more markets, we're excited to continue supporting our users to achieve their financial goals, while accelerating growth for our partners.' PalmPay's innovative model combines a user-friendly financial superapp with an extensive offline network of over 1 million merchants and agents, enabling seamless financial services even in underbanked communities. Its product suite includes money transfers, merchant payments, credit, savings and investment products, micro-insurance, and business tools for MSMEs. PalmPay also provides B2B payment services to streamline collections and disbursements to local and international merchants targeting African consumers. The company currently operates in Nigeria, Ghana, Tanzania and Bangladesh. 'Our growth is propelled by a clear vision: to empower businesses and individuals with frictionless, reliable financial tools', said Jiapei Yan, Group Chief Commercial Officer at PalmPay. 'We're deepening partnerships across the fintech ecosystem to enhance payment infrastructure and foster a more connected African economy. As we scale, we remain focused on accessibility, innovation, and regional collaboration to drive the growth of digital economies in emerging markets.' PalmPay's leading position in the Financial Times' ranking further underscores its pivotal role in advancing financial inclusion and cashless payment adoption since launching in 2019. On average, customers complete over 50 transactions per month, using the platform for everything from everyday payments to services that build long-term financial health, such as yield-bearing savings and insurance - products previously out of reach for many. A quarter of its users report that PalmPay was their first-ever financial account, demonstrating its strength in onboarding excluded populations into the formal economy while driving consistent, high-frequency engagement. For more information about PalmPay and its services, visit Distributed by APO Group on behalf of PalmPay. About PalmPay: PalmPay is a leading emerging markets-focused fintech platform committed to driving financial inclusion and economic empowerment. Through its secure, user-friendly, and inclusive suite of financial services, PalmPay empowers individuals and businesses with tools to manage and grow their money. PalmPay offers a comprehensive range of products including mobile payments, embedded credit, savings and micro-insurance via its app and mobile money agent network. Since launching in Nigeria in 2019 under a Mobile Money Operator license, the platform has grown to over 35 million app users and connects over a million businesses through its network of agents and merchants. PalmPay has operations in Nigeria, Ghana, Tanzania, and Bangladesh.. For more information, visit
Yahoo
02-06-2025
- Business
- Yahoo
Starling Bank: The rise and fall of a fintech darling
Over a decade ago three fintechs entered the banking scene and set their sights on reshaping its landscape. Starling, Monzo and Revolut rapidly expanded as they leveraged modern tech to streamline banking operations, enhance consumer experience and disrupt traditional financial models. The trio of fintech darlings ballooned customer bases in record numbers. But as two continued their charge, one faltered. Revolut topped £1bn in profit this year as its customers surpassed 50m – even beating Europe's biggest lender HSBC. Meanwhile, all eyes are on Monzo as the firm gears up for a blockbuster £6bn IPO on the London Stock Exchange. But whilst its peers live the fintech dream, Starling's fantasy has turned into a nightmare. The neobank's profit tumbled to £223m in 2024, down from £301 the previous year. This came as operating costs ramped up to £403m, from £332m, helping offset modest revenue growth of £32m to £714m. Starling's troubles were driven by a £29m fine handed to it by the Financial Conduct Authority (FCA). The City regulator slammed the firm's regulatory failings as 'shockingly lax' after its 'measures to tackle financial crime did not keep pace with its growth'. The fintech opened over 54,000 accounts for 49,000 'high-risk customers' between September 2021 and November 2022, according to the FCA. Starling was also forced to set aside a £28.2m provision in its 2025 accounts after identifying a group of pandemic-era loans that failed to meet a key guarantee requirement. These loans were issued under the Bounce Back Loan Scheme (BBLS), a UK government initiative launched during the COVID-19 pandemic to support small businesses with fast, low-interest loans backed by government guarantees. But because some loans did not meet eligibility or compliance criteria, Starling chose to remove the government guarantee and absorb the potential losses itself. David Sproul, chair of Starling's board, said the firm had 'resolved some important legacy matters' in the last year. The regulatory burden is bound to weigh on Starling's reputation and notably came as the firm enlisted its first chief marketing officer. Michele Rousseau was tasked with handling the fintech's brand and reputation as its turmoil deepened over the last year. Her appointment followed reports of a staff exodus after Raman Bhatia, who took the helm in 2024, ordered staff back to the office for 10 days each month despite not having office space to hold all employees. The business's headcount ballooned in the last 12 months, with staff costs topping £304m. However, this came as momentum on the customer side began to slow. The number of open accounts increased by ten per cent to 4.6m, but this was half the amount of growth made in the previous year. Meanwhile, in 2024 Monzo's customer base jumped 31 per cent to 9.7m and its customer deposits swelled 88 per cent to £11.2bn. The firm is expected to post its latest annual report in a matter of weeks. John Cronin, founder of Seapoint insights, said: 'Starling has no choice but to move up the risk curve – and this isn't something we learned today or yesterday either.' 'Its limited scale and consequent lack of operating leverage, high risk weights (standardised credit risk modelling) and relatively higher deposit funding costs mean it just cannot compete with mainstream banks. But that cuts to the heart of the business model – what competitive advantages does Starling have?' The fintech may hope its competitive edge will come in the form of Engine – the company's software-as-a-service (SaaS) subsidiary. Engine's contribution to group income was a modest £8.7m, but it marked a 284 per cent year-on-year increase. The company looks to be throwing its full weight behind the division with plans for expansion across the US. Raman Bhatia, chief executive, said the North American market offered a 'huge opportunity' as he eyed revenues of £100m in the 'short to medium term.' It's no surprise the firm's boss is betting big on the new venture — because if it fails, Starling may risk losing more than just fintech darling status. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
21-05-2025
- Business
- Forbes
Chime's IPO Is A Milestone For Fintech, But Has The Real Test Just Begun?
The neobank's public filing is a win for underserved-centric banking, but delivering true financial resilience for all Americans will require deeper innovation and a broader business model. The businessman climbs the stacks of coins, art collage. Success and innovation in the financial ... More sector. If you are in the fintech world, you already know that Chime filed its S-1 last week, aiming to go public on the NASDAQ under the ticker 'CHYM' sometime later this year. With over 8.6M 'active' users, $1.67B in 2024 revenue, and a valuation expected to exceed $20B (though educated estimates vary), Chime's IPO is a major event for the fintech industry. But for ResilienceVC and other investors focused on supporting fintech innovation for the underserved, this is a watershed moment, an industry-defining proving ground for the ability to build a real, scalable, and ultimately profitable American fintech company that focuses on the core needs of the un- and underbanked. But there is much more to do. 'CHYM' proves inclusive fintech can work Chime confirms that a neobank with no branches, no monthly fees, and a product-led growth model can reach profitable escape velocity. Chime built its business on reducing financial harm and doing right by its customers. Its core banking product eliminated overdraft fees, avoided harmful monthly charges and steered clear of predatory lending. That's a shift from how many Americans have experienced traditional banking, especially those that are financially unstable and lack the capital they need to get through the week or month. And some of the early evidence on growth and profitability is promising, though it has taken time to get there. In a space that has had its fair share of challenges, Chime has stayed disciplined and grown sustainably with solid unit economics. This model, ultimately fueled by deep consumer trust, clean user design, and a pure focus on the underserved, also marks the end of digital banking for inclusion as an experiment in the United States. Arjan from Core Innovation Capital says that 'while Chime's business model is not new, what makes them stand out is a flywheel stemming from consumer-obsessed products and an aspirational brand.' A business based on swipes (for now) Beneath the celebration, however, is a business model still anchored on the basic interchange fee. Roughly 80% of Chime's revenue comes from card swipes — merchant fees collected every time a customer uses their debit card. It's real revenue, but it's also fragile, as is its intrinsic growth. It is reliant on ever-rising spending behavior, and vulnerable to regulatory sentiment and any potential shifts in the Durbin Amendment. Even if 67% of active users use Chime as their primary financial provider, loyalty shifts, and there is always risk of customer flight. The company's flagship non-interchange features, like SpotMe (for fee-free overdrafts), Credit Builder (a secured card for building credit), and MyPay (early wage access), generate additional revenue and are more directly tied with consumers' ultimate financial needs. But their ability to deepen revenue is not yet proven. Chime's impact case, and its valuation case, are still tied to interchange and a benign checking account. Harm reduction is not the same as building resilience Financially unstable Americans ultimately need more than a gentler checking account. They need tools to manage short-term volatility and liquidity and ultimately to build long term wealth. That means tackling the next level of financial services challenges: income smoothing, rising home costs, growing childcare expenses and stable incomes for retirement. Chime helped millions get the starter set of financial products. But to help them truly thrive and build through inevitable uncertainty, it needs to go further – by expanding its core services and working with new fintechs on additional products that can drive real resilience. This next generation of fintechs go beyond avoiding fees. They build on trust and basic banking services as table stakes, but then focus on tangible progress toward resilience: authentic credit score improvements, lower volatility, debt reduction and growing net worth. Neobank 2.0 will be built on financial resilience. This includes innovators like Piere and Robora that are automating financially healthy behaviors, and companies that are helping everyday Americans 'find money' like Mirza, Coral, or Starlight. This new generation also includes solutions like Parento, Chaiz, Flora, or District Cover that improve access to risk mitigation tools for massive underserved markets. While every innovative fintech founder will have a different approach, the revenue and value necessity of financial resilience is consistent. Chime's IPO is indeed a generational milestone for inclusive consumer fintech. It proves that a mission to serve the underserved, if executed with discipline and scale, can deliver returns for both users and investors. But big market moves are also opportunities to learn and begin the innovation cycle anew. This moment should be celebrated, but it should also be used to ask harder questions. Not just 'how big and valuable can neobanks get?' but 'how deep can they go in building real value for their customers?' Chime showed us what's possible. The customer is still looking for what's necessary.
Times
12-05-2025
- Business
- Times
‘In the UK there's a lot of growth to be had, a lot of opportunity'
The government gathered leading fintech entrepreneurs to kick off UK fintech week in London this week and was met with a resounding thumbs up. Jaidev Janardana, co-founder and chief executive of the neobank Zopa was among those providing an upbeat assessment of the industry's prospects. Last week, it said it doubled pre-tax profits to £34.2 million in 2024 and grew its customer base to 1.4 million people. 'In the UK there's a lot of growth to be had, a lot of opportunity from sectors, such as fintech, to grow. I'm really encouraged by what the government is doing here to make sure we continue to remove barriers to growth,' he told the audience from financial services firms and government agencies. Richard Davies, chief executive of
