UK Neobanks expands its offerings | PYMNTS.com
In this week’s neobanking news for Europe, the Middle East and Africa (EMEA), British digital bank Monese has launched a feature to help improve the creditworthiness of those in credit difficulty, estimated at 5.2 million in the country, ultimately facilitating their access to loans at affordable rates.
Read more: UK Challenger Banks make it easier to access loans with credit creation tools
According to the London-based FinTech, the Credit Builder service will allow its existing customers in the UK to build their credit history and improve their credit score with the three major credit agencies and lenders in the country.
Monese’s vice president of credit, Garrett Cassidy, said at the start of the pandemic, access to credit emerged high on the list of features for customers – many of whom are “gig workers, hustlers, creatives and go-getters” – said they needed an account the most.
“The problem is that a lot of them are stuck with no credit because they’re invisible to credit, so we can say with some confidence that our customers need Monese’s Credit Builder,” Cassidy said.
Monese’s announcement follows the launch of other credit-boosting features by rival digital banks in the UK in recent months. Tide and Cashplus products are aimed at their small and medium-sized business (SME) customers and will help businesses establish a business credit score for easy access to loans.
Read the Cashplus CEO interview: UK Challenger Bank helps SMEs build credit history and access loans
This week also saw the arrival of a new player in the UK neobanking space. AltPay, a business-to-consumer (B2C) digital bank, aims to “remove the barriers of traditional banking and provide a targeted product that will meet the primary needs of everyday people and business-savvy entrepreneurs,” said FinTech in a press release. on its website.
The company also plans to launch a card program this year that will be available to individuals and businesses operating in the European Economic Area (EEA), with access to a wide range of products, including contactless technology and real-time access to account balance. via physical or virtual cards, contactless technology, refundable and non-refundable cards.
Outside Europe, Savii, a neobank for teens based in the United Arab Emirates (UAE) in the Middle East and North Africa (MENA) region, announced on Monday January 24 that it had launched its services in Bahrain after raising a pre-plant.
Founded in 2021, the young startup works with representatives of Gen Z to tailor the product offering to their needs, while equipping them with financial literacy tools to help them become financially independent.
Following the launch of its first product, a loyalty app through which teenage customers can earn money by recommending the product to their peers, the company is preparing to expand its offering by rolling out a prepaid debit card and wallet. that allow customers to shop online and in-store.