A VC once suggested me that concern was among the finest gross sales instrument ever invented. That was once in reference to the hockey stick increase his cybersecurity startup used to be seeing, as a result of a raft of stories within the media concerning high profile instances of corporations being hacked. then again would possibly the same be mentioned of banks and the pending possibility of fintech? Arguably, they have rather a lot to problem.
From having one of the vital most profitable and low-placing components of their alternate unbundled via using upstarts, similar to TransferWise (money transfer), Nutmeg (monetary savings), and PensionBee (pensions), to out proper ‘challenger’ banks which may also be re-inventing the current account and can lend out purchaser deposits in the type of overdrafts, a industry adaptation on the core of standard banking.
after which there’s the most important elephant in the room: big tech corporations. If fintech is in reality about monetising get entry to to a shopper’s monetary knowledge — access that the banks are being compelled to offer with assistance from upcoming european and U.k. open banking law — the likes of Google, fb, and, to a lesser extent, Apple and Amazon, can’t have the funds for to not bounce onboard the fintech educate.
Enter Meniga, a London-headquartered fintech startup, with R&D in Iceland, that provides digital banking recognize-the way to some of the critical world’s finest banks. Its more than a few merchandise include a instrument layer that bridges the hole between a bank’s legacy tech infrastructure and a up to the moment API, making it extra simple to assemble client-friendly digital banking experiences on top and to evolve to upcoming legislation paying homage to PSD2.
those new digital banking experiences most often exhibit up in a monetary institution’s cell app and embody issues like private finance supervisor performance, a fb-esque process feed to assist customers protect monitor of their spending, or the new Fitbit-impressed “Challenges” module, a roughly financial well being tracker that harnesses social and gamification to softly nudge a financial institution’s shoppers into better budgeting.
“lately’s banks are under drive to innovate and improve their consumer experiences on-line and however they’re beholden to legacy strategies and legacy methods and are steadily unwell geared up to produce their shoppers with world class client experience in digital banking,” Meniga co-founder and CEO Georg Ludviksson tells me.
“Meniga has constructed a popularity as a powerful innovation partner to banks and its instrument options lend a hand one of the crucial world’s biggest banks utilise their knowledge to make their on-line and cell banking further personalized and frightening”.
Ludviksson’s coining of Meniga as an “innovation associate” to banks isn’t simply startup speak about, neither is it bluster (the Meniga founder talks in at ease, thought of as Icelandic tones). the corporate holds 5-day onsite design sprints with its banking valued clientele, and closing twelve months it performed larger than eighty person trying out sessions in four countries — all over again, loads of them in partnership with the banks.
as well as, Meniga operates what Ludviksson says is a singular “sandpit” concept that sees the fintech startup provide a direct to client product for Icelanders that serves as a checking out floor for product attempting out and R&D that in turn advantages its clients. “It’s an internet page with free personal finance instruments with over 30 per cent of all Icelandic households registered. the online page’s customers are consumers from all walks of existence with each character sort,” he says.
Meniga may also be working with banks to introduce new information-pushed services and products and merchandise and industry fashions. the speculation is to allow digital banking users to “better keep in mind, handle and profit from their cash” by using offering non-public finance tools, insights and tailor-made bargains, similar to by the use of its card-linked offers product for retailers.
It’s a conventional data play: provide us get admission to to your monetary knowledge and we’ll provides you with one factor of value in return. Banks, eventually, sit on a heck of fairly a couple of knowledge, which they rarely do a very good job of exploiting, for their very own benefit or that of their consumers. Meniga helps to vary that, at the same time as the duty of seeking to persuade banks to embody a digital-first way of thinking ahead of a model new or outdated competitor does, is becoming lots more straightforward.
in the intervening time, the corporate, which counts the likes of Santander, Intesa, Commerzbank, ING Direct, and mBank as shoppers, has closed €7.5 million in new funding, bringing complete raised to €21 million as a result of being based in 2009. The spherical used to be led by means of Nordic VC Industrifonden, with participation from present merchants % Capital, Frumtak Ventures and Kjolfesta.
Fundings & Exits – TechCrunch