Memo Bank wasn’t constantly called Memo Bank. It initially began as Margo Bank and it has been flying under the radar for a couple of years. The French startup is now about to launch openly and shared more details about what it is building.
As the name suggests, Memo Bank is a bank. It prepares to server service customers solely and it targets medium and little business that generate over EUR2 million in yearly turnover and have more than 10 workers.
Jean-Daniel Guyot, the co-founder and CEO of Memo Bank, previously established Capitaine Train, which later became Captain Train, which later on was acquired by Trainline. Capitaine Train interrupted online train ticket sales in France as the nationwide train business basically had a monopoly.
You’re also getting in a highly managed market when you’re developing a bank. And Memo Bank’s team understands that and wishes to create a barrier to entry with its rivals while supplying a different service compared to legacy players.
Memo Bank is a credit institution and has gotten the proper licenses from the French regulator (ACPR) and the European Central Bank. “It’s a distinct occasion in France, it hasn’t took place since 1970,” Guyot said in a press conference.
“You do not build a bank in a garage with a couple of thousand euros,” he included order to set his start-up apart from other fintech start-ups. The start-up has actually raised a$22.5 million(EUR20 million)financing round from BlackFin Capital Partners, existing investor Daphni and Bpifrance. Founders Future and a lots of organisation angels are likewise signing up with the round– 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 is likewise taking a seat at the table as chairman of the board. Memo Bank had formerly raised $7.6 million (EUR6.7 million) in 2018.
So what is Memo Bank exactly? You’ll need to wait a few months if you wish to become a customer. The business has actually established its own core banking infrastructure and wishes to offer whatever you ‘d expect from an organisation bank.
It begins with a savings account that does not draw. “It seems obvious but think me it’s not,” Guyot stated. Numerous business banks do not let you include staff member without sending a letter. Or you can’t search transactions that are older than three months in the web user interface.
But the real item is credit. Memo Bank wishes to provide line of credit in just a couple of days with no troublesome documentation. Memo Bank’s biggest competitor isn’t neobanks. The startup is completing directly with online loaning platforms, such as October.
At first, Memo Bank is going to accept customers in the Paris location. While the company won’t have any physical branch, it wishes to be able to talk and come to you straight. It’ll expand to Lyon and then other French cities in the next years. Ultimately, Memo Bank hopes it can bring in 4,000 clients within four years.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.