Smartphone banking: N26 and Revolut face competition: new banking platform Vivid Money starts | message
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Berlin’s new banking platform
Since June 8, 2020, Vivid Money has been a new mobile financial platform in Germany that could seriously compete with the Fintechs N26 and Revolut. The startup Vivid Money, based in Berlin, has a banking model like N26 and Revolut. Accordingly, customers can access financial services and carry out transactions using the smartphone app. In addition, compared to N26 and Revolut, Vivid Money offers its customers services such as stock trading or a cashback bonus program. According to the Handelsblatt, the platform should focus on savings and investment products.
Vivid Money has these products in its portfolio
Vivid Money offers its customers a premium and a standard Giro account including a free Visa debit card. Customers can withdraw up to 200 euros per month free of charge with the standard current account, but up to 1,000 euros in cash with the paid premium current account, but this costs 9.90 euros per month. For larger monthly withdrawal amounts, three percent of the withdrawal amount is due. N26 customers pay a fee of two percent compared to the free withdrawal amount.
In addition to the current account with a German IBAN and a German deposit guarantee, Vivid Money provides its customers with unlimited pockets in various currencies. Pockets are sub-accounts to which money can easily be transferred from the main account. With Vivid Money, the pockets can be created in 100 foreign currencies and later changed to other currencies. If the customer wants the currency exchange, Vivid Money will accept it at a real-time exchange rate for comparatively low fees, heise online. N26 and Revolut have established a similar subaccount system, only they are called differently there.
As a direct savings and investment opportunity, Vivid Money would like to enable its customers to trade mostly free of charge with German and American stocks and ETFs in the future. However, this service will only be available to customers in a few months. As the Handelsblatt reports comparatively, Revolut customers can invest in 750 US companies, but N26 does not provide a comparable product.
With the Vivid-Money cashback program, customers can receive up to 20 euros cashback per month, the amount of the cashback ultimately depends on where and for how much money the customer has bought. The cashback can, for example, be invested directly in shares via Vivid Money, a special feature among the existing fintechs.
about Vivid Money
Vivid Money was founded by Artem Yamanow and Alexander Emeshev, two former managers of the Russian digital Tinkoff bank. The financial platform does not currently have its own banking license, which is why it uses the solarisBank infrastructure. According to the Handelsblatt, the startup was financed through equity and loans and the TSC Group has already assured the startup, according to heise online, of 25 million euros for the first round of financing.
The company’s vision underscores its focus on savings and investment products: “We want to educate people about how they can automatically increase their wealth with the right tools. With Vivid Money, you have numerous options without a separate account or deposit for each service different providers. So customers can easily start trading stocks and take control of their financial lives, “said Mitgrnder Yamanov in a press release from solarisBank. Expansion into foreign markets is already planned.
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