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Memo Bank unveils its business bank, credit license and $22.5 million in new funding

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Memo Bank unveils its business bank, credit license and $22.5 million in new funding

Memo Bank wasn’t all the time referred to as Memo Bank. It initially began as Margo Bank and it has been flying beneath the radar for a couple of years. The French startup is now about to launch publicly and shared extra particulars about what it’s constructing.

As the identify suggests, Memo Bank is a financial institution. It plans to server enterprise prospects completely and it targets small and medium firms that generate over €2 million in annual turnover and have greater than 10 staff.

Jean-Daniel Guyot, the co-founder and CEO of Memo Bank, beforehand based Capitaine Train, which later grew to become Captain Train, which later was acquired by Trainline. Capitaine Train disrupted on-line prepare ticket gross sales in France because the nationwide railway firm principally had a monopoly.

When you’re making a financial institution, you’re additionally coming into a extremely regulated market. And Memo Bank’s workforce is conscious of that and needs to create a barrier to entry with its rivals whereas offering a distinct service in comparison with legacy gamers.

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Memo Bank is a credit score establishment and has obtained the right licenses from the French regulator (ACPR) and the European Central Bank. “It’s a singular occasion in France, it hasn’t occurred since 1970,” Guyot stated in a press convention.

“You don’t construct a financial institution in a storage with a couple of thousand euros,” he added to be able to set his startup aside from different fintech startups.

The startup has raised a $22.5 million (€20 million) funding spherical from BlackFin Capital Partners, present investor Daphni and Bpifrance. Founders Future and a ton of enterprise angels are additionally becoming a member of the spherical — Alexis Bonillo, Antoine Martin, Marc Simoncini, Nicolas Steegmann, Oleg Tscheltzoff, Paulin Dementhon, Pierre Valade, Rachel Delacour, Sarah Meyohas, Thibaud Elzière, Xavier Niel…

The former CEO of Arkéa Ronan Le Moal can be taking a seat on the desk as chairman of the board. Memo Bank had beforehand raised $7.6 million (€6.7 million) in 2018.

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So what’s Memo Bank precisely? You’ll have to attend a couple of months if you wish to turn out to be a consumer. The firm has developed its personal core banking infrastructure and needs to supply all the things you’d count on from a enterprise financial institution.

It begins with a checking account that doesn’t suck. “It appears apparent however imagine me it’s not,” Guyot stated. Many enterprise banks don’t allow you to add workforce members with out sending a letter. Or you possibly can’t browse transactions which might be older than three months within the internet interface.

But the true product is credit score. Memo Bank desires to supply credit score strains in only a few days with none cumbersome paperwork. Memo Bank’s greatest competitor isn’t neobanks. The startup is competing immediately with on-line lending platforms, corresponding to October.

At first, Memo Bank goes to just accept shoppers within the Paris space. While the corporate received’t have any bodily department, it desires to have the ability to come and speak to you immediately. It’ll develop to Lyon after which different French cities within the subsequent years. Eventually, Memo Bank hopes it will possibly entice 4,000 shoppers inside 4 years.

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