Memo Bank wasn’t at all times known as Memo Financial institution. It initially began as Margo Financial institution and it has been flying below the radar for a number of years. The French startup is now about to launch publicly and shared extra particulars about what it’s constructing.

Because the identify suggests, Memo Financial institution is a financial institution. It plans to server enterprise clients solely 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 Financial institution, beforehand based Capitaine Practice, which later grew to become Captain Practice, which later was acquired by Trainline. Capitaine Practice disrupted on-line prepare ticket gross sales in France because the nationwide railway firm principally had a monopoly.

While you’re making a financial institution, you’re additionally coming into a extremely regulated market. And Memo Financial institution’s group 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.

Memo Financial institution is a credit score establishment and has obtained the correct licenses from the French regulator (ACPR) and the European Central Financial institution. “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 number 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 Companions, current 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 previous CEO of Arkéa Ronan Le Moal can be taking a seat on the desk as chairman of the board. Memo Financial institution had beforehand raised $7.6 million (€6.7 million) in 2018.

So what’s Memo Financial institution precisely? You’ll have to attend a number of months if you wish to grow to be a consumer. The corporate has developed its personal core banking infrastructure and needs to supply every little thing you’d anticipate from a enterprise financial institution.

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

However the actual product is credit score. Memo Financial institution desires to supply credit score traces in just some days with none cumbersome paperwork. Memo Financial institution’s largest competitor isn’t neobanks. The startup is competing immediately with on-line lending platforms, akin to October.

At first, Memo Financial institution goes to just accept shoppers within the Paris space. Whereas the corporate gained’t have any bodily department, it desires to have the ability to come and discuss to you immediately. It’ll broaden to Lyon after which different French cities within the subsequent years. Ultimately, Memo Financial institution hopes it may possibly entice 4,000 shoppers inside 4 years.

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