Vroon Modgill

Mate, How does that matter to you and me? Are we going to get any money from it? Is society going to get anything out of it? Will that risk them their banking license? Will that impact their valuation? Will that impact their NPS ( Net Promoter Score)? Will that impact their growth and expansion?

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🤦‍♂️. App downloads ≠ monthly active users (#MAU) And: MAUs ≠ transactional accounts with salary mandates / regular income (ie profitable) I think I have 10+ payment / banking apps installed on my phone that I haven’t clicked on this year, let alone this month… https://lnkd.in/dZBEcqws #champion #challenger #neobanks #fintech #payments

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UK digital bank Monzo Bank invests $4 million on its Irish division to push the expansion in Europe UK-based digital bank #Monzo has injected €4 million into its new Irish division, marking a significant step in its European expansion plans. This move follows CEO TS Anil's announcement earlier this year that Ireland will serve as Monzo's gateway to European markets. By establishing an EU office in Ireland, Monzo aims to extend its innovative banking services across the continent. Founded in 2015 by Tom Blomfield, Jason Bates, Paul Rippon, and Gary Dolman, Monzo has rapidly grown to serve around 10 million personal customers and over 450,000 business customers. Competing with other digital banks like Starling Bank and Revolut, Monzo has distinguished itself with user-friendly features and a focus on making money work for everyone. The bank recently reported a pretax profit of £15.4 million for the 13 months up to March, a significant turnaround from a £116 million loss the previous year. This financial upswing was fueled by a surge in revenue to £880 million and lending £1.4 billion to customers—a remarkable 84% increase. With its expansion into Ireland, Monzo is not only solidifying its presence in Europe but also setting the stage for further growth, including plans to enter the U.S. market. The bank continues to innovate with new products like Monzo for Under 16s and Monzo Pension, aiming to provide comprehensive financial solutions for a diverse customer base. The article on Crowdfund Insider in the first comment.

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UK-based fintech ClearScore has acquired credit marketplace Aro Finance Limited as part of its strategy to grow its presence in Embedded Finance. #fintechnews #creditmarketplace #embeddedfinance #ThePaypers

Big Banks Denying UK SMEs Vital Cash as the Savings Gap Grows Again Richard Davies, CEO of Allica Bank, said: “Our latest data continues to underscore the need for an overhaul of the status quo, as UK SMEs continue to be short-changed by the big banks and their meagre interest rates. With the savings gap once again breaching 3%, there has never been a more appropriate moment to make steps towards a more transparent savings market. “The current state of the market means that the average UK SME is missing out on an average of £2,268 a year. For more established SMEs, the impact of this can be even greater. According to our data, a business with £1 million in the bank would be losing out on an average of £30,200 if it banks with one of the big six. “Business banking needs to change for the better – and we can start by making sure that all businesses have a clear picture about how to get the best deal on their savings. Better rates are out there – but customers need to know where to look.” https://lnkd.in/e3V7BRSs Philippa Gerrard Chloe Fenton (née Vaidya) Pragyani Bora Carlie Southworth James Heath Conrad Ford Grant Brown #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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#UK #neobank Zopa Bank has announced the raise of #USD 85 #million in #equityfunding, aiming to accelerate its #development journey and meet the expectations of clients. #fintechnews #payments #paymentnews #thepaypers #investment #fundinground #funding #banking #onlinebanking #mobilebanking #digitalbanking #financialservices #financialinstitutions

New Report Indicates UK SMEs Are Optimistic About the Future Corin Camenisch, Product Marketing Lead at SumUp commented on the survey: “As champions for small merchants, we conducted this survey to discover the confidence levels of small business owners and decision makers in the UK to better understand the challenges they face, gauge their optimism about their future, and identify areas where support for SMEs might be needed. “Overall, confidence levels of small business owners and decision makers across the UK are high. This positive outlook suggests that small merchants are prepared to navigate potential uncertainties and continue to thrive. “We have provided tips off the back of our findings for those just starting out in business, or who are looking to deal with unexpected market fluctuations on our full campaign page.” https://lnkd.in/e975UtrF #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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Financial Conduct Authority Fines Barclays £40 million Stephen Smart, joint executive director of enforcement and market oversight at the FCA said: "Barclays’ misconduct was serious and meant investors did not have all the information they should have had. However, the events took place over 16 years ago and we recognise that Barclays is a very different organisation today, having implemented change across the business. "It is important that listed firms provide investors with the information they need.” https://lnkd.in/eSE-HFcf Daniel Thornton Pratiksha Patel Luke Peyton Jamie Bell Helen Packard Brian L. Eyles #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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Broken Business Savings Market Is Costing British SMEs £9 Billion a Year in Missing Interest Richard Davies, CEO of Allica Bank, said:  “There’s no question the SME savings market is broken. “The fact the SME savings penalty has got larger since we first did our research last year – while the Bank rate has reduced slightly – is a travesty many SMEs will find hard to understand. “It’s very unfair SMEs don’t get similar rates to large companies, and our research suggests big banks won’t be improving their rates for SMEs any time soon. “It’s time for something to be done to make that change, get SMEs a better deal and release billions of pounds into the real economy.” https://lnkd.in/eqAmuVCf Chloe Fenton (née Vaidya) Georgie Burks Joe Jones James Heath Ravneet Shah Conrad Ford Mitch (Munish) Trehan Nick Baker #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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THIS. IS. HUGE! 🤯 Swift have announced plans to help FIs streamline the cross-border payments experience for their corporate customers by extending ISO 20022 across the ENTIRE payment chain 👏 💸 🌍 Activated at the click of a button, this will enable FIs to capture rich data AT THE SOURCE and marks a SIGNIFICANT milestone in delivering its strategy for instant and frictionless transactions 🏦 🤝 The plan has been developed with a working group of 25 LEADING cash management banks and 20 sector-leading corporates with the aim to introduce a universal standard that can maximise the BENEFIT of ISO 20022’s richer, more structured data 👨‍💻 Boris Lipiainen, Chief Product & Technology Officer at Kyriba, said: "We are pleased to be working alongside Swift and many others for this pilot programme. By utilising a single standard for payment initiation in ISO 20022 and enabling direct corporate access to tracker data, we are able to integrate additional services that improve the payment experience for multibank clients across the payment lifecycle. Together with Swift, we are able to reduce friction, streamline operations, and increase value for our customers." Read more on the link below! 👇 Thierry Chilosi MUFG Noritoshi Murakami BNP Paribas Damien Godderis DBS Bank HSBC Societe Generale FIS Citi Santander UniCredit Bank of America BBVA Barclays #swift #crossborderpayments #iso20022 #corporatepayments #digitalpayments #fintech #fintechnews #financialservices

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ColCap UK and Molo Complete £300 Million Securitisation ColCap UK’s Treasurer, Paolo Tanca, commented, “This deal represents a significant milestone for us, showcasing our ability to structure and execute successful RMBS transactions in the UK market. We are excited about the opportunities for future growth and expansion.” Esther Morley Matthew Kimber https://lnkd.in/eyBXKnyR #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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Monzo Bank Raises Additional $190 Million TS Anil, CEO of Monzo: “The huge interest we see from global investors is testament to the momentum and strength of our business model and the commitment of our teams, who put our customers at the heart of everything we do. With even more rocketfuel for our ambitions and exciting products in the pipeline, there’s no doubt in my mind that the best of Monzo is yet to come.” https://lnkd.in/etJWG4yq #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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Zopa Bank & ClearScore-Led Campaign Pledge2025.org Surpasses 15 Million Actions Milestone in Bid to Build the Financial Resilience of UK Consumers Jaidev Janardana, CEO of Zopa Bank said: “We’re thrilled to see the 2025 Fintech Pledge continue to progress so rapidly. While our economy is stabilising and inflation has largely abated, there is no room for complacency. The fintech ecosystem can jump-start the UK economy, helping consumers bounce-back by embracing new behaviours that support their long term financial well-being.” https://lnkd.in/eR7Y2uEZ Wilfred Collins Lucas Germanos Clare Gambardella Peter Donlon Michael Woodburn Vicky Saliari Justin Basini Andy Sleigh Michael Woodburn #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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The Competition and Markets Authority (CMA) has announced the completion of its Open Banking Roadmap unlocking a new era of financial innovation. Ben Beecroft, Head of Monitoring at OBL comments Read more here >> https://lnkd.in/eZSAKjvJ #OpenBanking #SmartData #OpenFinance #Innovation #DigitalInnovation #TechInnovation #Payments #VRPs Financial Conduct Authority | HM Treasury | Payment Systems Regulator

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🚨Best merchant acquirer at the 2024 payment awards 🚨 The Swift Payment Solution in partnership with Dojo have been back to the drawing board to see how we could help many more customers who take card payments happy😀 & here is how we are going to to do it⬇️ 1. Already taking card payments? well switch to us & we will cover the cost of your terminal fees for the lifetime of being a customer🚀 2. Don’t like the cost of the rental of the terminal? well you can now buy the terminal outright, which means you pay no terminal fee. & you will then own the terminal 😎 3.Don’t need a terminal? well that is also fine move over to us & just use your iPhone to take payments. 4. We hear you you do not want to be locked into a contract? well that’s fine move over to us on our 30day rolling!! 5. Want guaranteed rates?? great let’s lock you in for 12 months.🔒 Not forgetting some of the great benefits on offer like⬇️ •Money 365 days a year •Intergration into your EPOS •Online payments •5* customer service *Business funding Let’s give your business the tech upgrade it deserves before Christmas 📞 07983 124 180 📧[email protected] The Swift Payment Solution #freeterminal #upgrade #offer #free #getdojo #kiosks #tapandpay #uk #cardpayments

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Starling Bank’s Screening Failures — A Lesson in Compliance In an era where financial institutions face mounting pressure from regulators, Starling Bank’s recent enforcement action by the Financial Conduct Authority (FCA) serves as a poignant reminder: a robust compliance framework isn’t just a regulatory checkbox; it’s essential for the integrity of the financial system. As regulatory penalties become all too common, any lapse in compliance can have dire consequences.  https://lnkd.in/eEYwzJhu ThetaRay Cedric Iggiotti #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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ThinCats Passes £2bn Funding Milestone for UK SMEs Mike Hackett, Chief Commercial Officer at ThinCats: “This milestone reflects ThinCats’ dedicated approach to the mid-size market and support for the local finance community with whom we work in partnership to help mid-sized businesses thrive. ThinCats’ commitment to regional investment has been a critical driver of growth and we have built up experienced teams across our network of regional support offices, and they work hard to deliver flexible funding solutions for mid-sized businesses across the UK”.   https://lnkd.in/eqMUA4Jk Daisy Knight Ricardo Bougi Ravi Anand Gary Nutley Beth England Diana Portman Stuart Thompson Amany Attia #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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NEO BANKS – UK IS TYPICAL OF NEO BANK FAILURE Start-up banks are not new – there have been five groups since 1990. The latest are Neo banks usually founded from 2014 onwards – the 2008/12 group have all but vanished… a big clue! UK new players Atom, Monzo, Starling and Revolut launched 2013/15 Today, none have scale so important in banking, none making consistent profits so important to ensure consumer Trust and keep a banking license “A decade after these fintechs burst on to the scene, they have arguably succeeded in their mission of setting new standards for digital banking…” “…consumers are using neobanks as a convenient payment management service, rather than as a replacement for traditional current accounts” Only 6% UK consumers use neo bank exclusively - no USP! SECURITY & COMPLIANCE RISKS “..the ability to quickly open accounts and make transfers has also proved a boon for criminals. Britons lost £1.2bn to financial fraud last year..” “…start-ups struggled to scale up their anti-financial crime capacities at the same speed they were attracting new users… new sanctions imposed..2021 increased the amount of due diligence banks had to conduct..” “There cannot be a trade-off between quick and easy account opening and robust financial crime control,” FCA “…compliance has also raised concerns” Revolut has more complaints than all other Fintech’s combined NEO BANK TEST “But they are now being tested in a downturn..” “The plentiful venture capital that financed their heady growth… — is drying up” “Global fintech investment has dropped by nearly 50% in 2023..” “Investors in fintechs are increasingly scrutinising the neobanks’ differing business models and assets, looking for proof they can be durably profitable and attract sufficient deposits to fund lending” “….high-street banks have raised their game by upgrading their own digital banking services, with the result that about 60% of adults living in Britain now use a mobile banking app, up from 33% in 2015 NEW ‘DIGITAL’ BANKS JP Morgan launched September 2021, has 2 million customers with avg deposits £27,000 (US$29,084) well above Neo Banks That’s more than Monzo Bank and Starling Bank togther Goldman Sacs another ‘legacy’ player launched in UK 2018, now has 1 million customers JP Morgan and Goldmans are growing at a much faster rate than Neo Banks at the same stage GLOBAL GROWTH In 2020 242 Neo-banks existed as VC's pilled in, the number swelled to 450 by 2022 – while 139 failed in 2022-24 A recent report questions the future especially profitability, so essential in banking. Simon-Kucher report is stark “Of 400 neo banks in the world, less than 5% are breaking even.....several are in the cash-burn zone losing as much as $140 per customer annually.” “..neobanks recognise they will not survive at scale and be sustainably profitable without a two-sided balance sheet.." https://lnkd.in/gT_je9Ux

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