Two new entries to become the ‘something’ of banking
In an increasingly-crowded UK challenger bank market, two new hopeful entrants have been announced.
Three senior City bankers are aiming to launch the “Google of finance” and disrupt the UK savings market.
Led by Huy Nguyen Trieu, a fintech entrepreneur who led a capital markets team at Citi, the as yet unnamed bank is planning a mobile savings app that utilises artificial intelligence. Through this, it hopes to give tailored advice and offer “risk-free” products such as Isas and high interest rate savings accounts.
The project, supported by former CTO of Atom Bank Paul Hanks and former colleague Lionel Durix, has more than £10m ($13.2m) in funding and hopes to gain regulatory approval in 2018 or the following year.
In addition, savings app Chip is looking to crowdfund £2.4m and become the “Brewdog of banking”.
The Chip app connects to current accounts and uses an AI-powered algorithm to calculate how much the customer can afford to save. Now claiming 25,000 accounts and users saving a total £1m a month, it has set its sights on higher ground.
£500,000 was donated in the first 24 hours of the crowdfunding campaign by 1,700 benefactors.
Chip CEO Simon Rabin said: “To have so many of our customers invest in the company is a fantastic endorsement of what we’re building. There’s so much excitement around what we’re going to do next.”
However, with Starling still limited in terms of acquired customers and Monzo rethink its entire pricing strategy to make a profit, is this the right time for new entrants?