Issue link: https://maltatoday.uberflip.com/i/1215405
27.02.2020 11 ANALYSIS Revolut is about much more than market share let them get on with it. Six months later or whenever, the IT side will come back with the product. The new banks operate quite differ- ently. They focus on so-called "agile" principles, which develop products/ updates using "squads" or "scrums" of people from relevant departments who are jointly responsible for the project. It's a less hierarchical approach that may involve producing a quick pro- totype in "sprints" of as little as two weeks. It will then be beta-tested by customers to garner feedback, and then refined – similar to when Mi- crosoft, for example, issues new soft- ware to select customers. Any compa- ny can adopt this cultural approach, though of course legacy IT makes it much harder for traditional banks. Having said that, the best example is arguably from that side of the fence: DBS Bank of Singapore, which is ac- tive across Asia, was crowned Eu- romoney Bank of the Year 2019 for "embedding digital innovation into everything it does". Bó arrives In contrast to DBS Bank, RBS and other traditional UK banks appear to be backing two horses – the old and the new. RBS/NatWest is both mod- ernising the traditional operation with things like banking apps and vir- tual cards, while also setting up Bó for retail customers – as well as another brand called Mettle for businesses. Both will compete with the existing retail bank, though RBS/NatWest may incentivise its customers to transfer across. Bó is certainly more likely to appeal to millennials and Gen Z than to older generations, and thus may be a good gateway to ensuring that the RBS Group keeps attracting young customers. Unlike rivals like Starling and Monzo, however, it does not yet have all the features of a full-service bank. So, for instance, while the app gives you instant-spending notifica- tions and lets you create spending budgets, there is no offer of interest on savings and no overdraft facility. There is also no Google/Apple Pay feature. Some people in the industry have accused RBS of doing too little too late for this venture to be suc- cessful, predicting it will lose inter- est after a year or two. This ignores RBS's major incentive here: if Bó and Mettle succeed, it will make it easier for RBS to close branches in future, and to move away from the ancient IT architecture that makes it so difficult for legacy banks to progress. RBS/NatWest could then have the pre-conditions for future financial success - top-class IT, greatly reduced costs and a large enough customer base to make Bó profitable - a great combination that the independent start-ups yet lack. For some challeng- ers, their best hope must still be that an incumbent bank launches a bid for them at some point in the future. Malta: Revolut Revolut launched its services in Malta in Sep- tember 2018 and quickly went on to become the digital bank of choice for the Maltese, with 100,000 customers signed up within 11 months. UK: Revolut Revolut is a UK fintech company that offers banking services including a prepaid debit card (MasterCard or Visa), fee free currency exchange, commission free stock trading, cryp- tocurrency exchange and peer-to-peer (P2P) payments. Revolut has more than 7 million customers and operates across the European Economic Area (EEA), in Switzerland, the US, Canada, Australia and Singapore. Ireland: Fire Fire is a challenger bank from Ireland that helps businesses to manage payments with digi- tal accounts and debit cards and which supports a range of payment services all accessible via a powerful API. Founded in 2009, the company provides du- al-currency euro and sterling accounts to busi- nesses in the UK and Ireland, as well as personal accounts. Germany: N26 N26, formerly Number 26, is a German mo- bile bank that provides a free basic current account and a debit MasterCard to all its cus- tomers, as well as a Maestro card for its custom- ers in certain markets. Additionally, N26 offer premium accounts which come with additional features for a monthly fee, and customers can also request overdraft and investment products. N26 counts 3.5 million customers across 26 markets. Netherlands: Bunq Founded in 2015, Bunq is a Dutch, interna- tionally active mobile bank, headquartered in Amsterdam. e company offers a range of online financial services, primarily through its mobile app. e company's app enables cus- tomers to open one free transaction account, or up to 25 accounts for a monthly fee. Addi- tionally, customers can request money from friends, split bills, and make payments in real time. Businesses can also open a Bunq account. France: Nickel Formerly known as Compte Nickel, Nickel is an alternative French banking service. Founded in 2014, the company sells debit cards and cur- rent accounts at more than 5,000 tobacconists in France. Customers manage their accounts through a mobile app. Nickel counts some 1.2 million clients in France and now plans to launch in Spain, Por- tugal, Belgium, Italy and Austria. e company was acquired by French bank BNP Paribas in 2017. Belgium: Anytime Anytime is a Belgian fintech startup that of- fers current accounts, a debit card, as well as several other financial services for small and medium-sized enterprises (SMEs) and individ- uals. Customers manage their accounts through a mobile app. Anytime was launched in 2012 with the aim of providing simplified financial services to con- sumers and businesses. Switzerland: Neon Neon is a Zurich-based fintech startup offer- ing a mobile banking solution that allows users easily and conveniently manage their everyday banking. Neon promises fairer prices than tra- ditional options, and comes with no base fees for the account and card. Customers can con- trol their payment card in real-time through the app, as well as make payments. Neon is not a bank per se and the accounts are actually man- aged by Hypothekarbank Lenzburg, its banking partner. As of October, the company claimed 10,000 clients on its books. Spain: Bnext Launched in 2018, Bnext is Spain's leading mobile-first neobank, claiming 300,000 active users and more than EUR 100 million in month- ly transactions. Bnext operates in the European Union (EU) under an e-money license, providing users with a card and a linked mobile marketplace featur- ing banking products from select partners. e company also provides an account aggregation feature to manage traditional bank accounts from within the app. Users can connect their existing bank accounts to the platform and manage their finances in one place, at any time. Portugal: Banco BNI Europa Banco BNI Europa is a Portuguese digital-on- ly, challenger bank whose mission is to offer customers a modern digital low-cost banking platform and innovative banking products, tai- lored to their needs. Launched in 2014, Banco BNI Europa aims to challenge the traditional banking sector through strategic partnerships with fast-mov- ing fintech businesses to launch new products. Italy: Hype Launched in 2015, Hype is a digital bank ac- count by the Italian bank Banca Sella. It is the first challenger bank launched in Italy. Hype has an associated prepaid card that cus- tomers recharge with their bank account. Hype allows payment using the prepaid credit card in Italy, abroad, and on the web. It also allows for sending and receiving money at zero cost. Norway: Aprila Bank Headquartered in Oslo, Aprila Bank is a high- ly automated niche bank focusing on intuitive on-the-spot financing solutions for SMEs by employing modern technology, data-driven credit risk management and an innovative dis- tribution model. Although Aprila Bank mainly focuses on in- voice financing, the bank also provides personal savings accounts. Finland: Holvi Founded in 2011 and based in Helsinki, Hol- vi is a digital banking service for freelancers and entrepreneurs. Holvi combines powerful money management tools with an easy-to-use business current account to offer an innovative banking experience that actually helps entre- preneurs run their businesses. e business ac- count comes with a MasterCard, and customers also get access to features for easy invoicing and bookkeeping. Denmark: Lunar Lunar is a 100% digital mobile-based banking app serving individual and business customers. e app lets users pay their bills, analyze their consumption, and transfer money through the app. Lunar claims more than 100,000 users in Denmark, Sweden and Norway. e company received its banking license in 2019. Sweden: Klarna Founded in 2005, Klarna is one of Europe's largest banks, providing payment solutions for 80 million consumers across 190,000 merchants in 17 countries. Klarna offers direct payments, pay after delivery options and instalment plans in a smooth one-click purchase experience ough the startup initially started with a focus on online and digital payments, it was granted a full banking license in 2017, enabling it to offer a range of new banking products and services for its customers across Europe. 14 hottest digital-first challenger banks by country in Europe