Key Takeaways:
- The fintech bank doubled its loan disbursements year-over-year, providing €500 million in total loans to SMEs.
- Now boasting 10,000 customers, the bank’s digital products serve over 3,000 micro-enterprises and SMEs.
- With an innovative free no-notice deposit account offering an impressive 3.5% annual gross rate, this fintech powerhouse is setting new standards.
Soaring High in the Fintech World
Banking is no longer what it used to be. A case in point is an Italian fintech bank that has doubled its growth in just a matter of months. Founded in 2020, this bank is designed exclusively to serve Small and Medium-sized Enterprises (SMEs) and entrepreneurs. As of the third quarter of 2023, it has provided over €500 million in loans to Italian SMEs.
The secret sauce? An impressive digital portfolio that offers SMEs a simpler, faster, and more flexible alternative to traditional lending services. The bank employs cutting-edge technology like Payment Services Directive 2 (PSD2) native products and artificial intelligence for data-driven credit assessments. This allows it to meet the burgeoning needs of today’s fast-paced financial environment.
Beyond Loans: Deposits and Current Accounts
Of course, the fintech offering doesn’t stop at loans. The bank also extends a competitive portfolio of deposit and current accounts to its clientele. It has already garnered 10,000 customers who have subscribed to its various digital products.
In a matter of months, their business current account that offers a 2% gross annual rate yield has already attracted 500 customers. This service, which uses PSD2, provides an invaluable tool for businesses to manage their liquidity efficiently.
Unshackled Savings
Taking their service a notch higher, the bank introduced a new free no-notice deposit account in July 2023. This account offers an incredible 3.5% annual gross rate and allows savers to deposit and withdraw funds freely at any given time. With no strings attached, this product has further upped the ante for what customers can expect from a banking service.
What’s remarkable is that the bank allocates 100% of its deposits to financing SMEs, thereby creating a sustainable ecosystem that benefits both the lenders and the borrowers.
CEO’s Vision: Adapting to the New Economic Climate
In a recent statement, the bank’s CEO highlighted the importance of adapting to the ever-changing economic climate. He noted the doubling in loan disbursements was indicative of the growing liquidity needs among SMEs. The CEO also credited the strong performance of the bank’s current and deposit accounts to the trust businesses and savers have in their product offerings, which are designed to be simple, fast, and yield excellent interest rates.
A Meteoric Rise
Founded amid a pandemic, this fintech bank stands as a testament to what technology and innovation can achieve. It successfully completed a massive €48 million fundraising round, marking it the largest first round for any Italian fintech startup. The bank was also recently ranked among the LinkedIn Top Startups for 2023 and won the Fintech Awards from Financecommunity.it for its innovative financial solutions.
What’s Next?
Having set new benchmarks in the fintech sector, the bank is poised for more growth and expansion. It’s not just rewriting the rulebook on what a fintech can achieve but is also providing concrete solutions that directly support an ever-growing number of Italian entrepreneurs and SMEs.
So the next time you hear about a ‘revolution’ in fintech, know that it’s not just a buzzword. It’s a reality that’s changing the business landscape, one loan, and one deposit account at a time.
Whether you’re a small business in need of a capital influx or a savvy saver looking for impressive yields, keep an eye on this fintech sensation. It’s reshaping what we think banking should be, and it’s doing it at an astonishingly rapid pace.
“In today’s fast-paced financial environment, it is even more important for banks to be able to adapt and respond quickly to meet the new needs of the economy.” – Said Federico Sforza, CEO and Co-Founder of Banca AideXa – “Banca AideXa’s positive results in recent months confirm the growing need for liquidity among SMEs today, as evidenced by the doubling of our loans. Moreover, thanks to the trust that savers and businesses are showing in our current and deposit accounts, which are simple, fast and offer excellent interest rates, we can now provide concrete support to a growing number of Italian entrepreneurs.”
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