Spain Approves Neo as a B2B Challenger Bank
Corporate banking startup Neo announced it has just been authorized to offer multicurrency business accounts. The approval comes from the Bank of Spain and allows Neo to create a PSD2 payment institution.
“Our vision back in 2017 was to create a platform that can replace the old fashioned banking platform. A true ‘one-stop shop’ that offers all the financial products a corporate client needs to operate in a global environment,” said Laurent Descout, CEO. “Operating with Neo does not require any complex installation. It is 100% on demand with the client being in complete control. The platform ensures clients can reduce costs and increase efficiency by reducing manual tasks and improving processes. Our 100% API approach also offers clients great automation possibilities.”
By “one-stop shop” Descout means that Neo offers both investment and payment services and aims to bring all corporate finance functionalities together on a single platform.
Hosted on a core banking platform developed by Neo Fintech Lab in the U.K., Neo’s multicurrency account allows account holders to receive, store and pay in 30 currencies. The bank also enables clients to digitize their treasury department and offers features inspired by treasury management systems.
These banking products will run in tandem with Neo Capital Markets’ FX hedging services, which allow clients to hedge 90+ currencies and receive or make payments in 30+ currencies.
Receiving its banking license places Neo in competition with the likes of Sweden’s Klarna, which received its banking license in 2017, and Transferwise, which offers a borderless account that allows accountholders to receive funds from 30+ countries.
Neo’s multi-currency account will be available in Spain, France, U.K., and Poland in 2020.
At this year’s FinovateEurope conference in London, Descout, along with Neo’s Chief Product Officer Emmanuel Anton, demoed the company’s risk management solution and FX hedging engine. The company has 20 employees and has raised $5.6 million (€5 million).