<div>
  <ul>
    <li>
      <p>
        Atom Bank, a UK-based neobank that serves retail and SME customers, raised GBP 30 million (~USD 36.3 million) from its two largest shareholders, BBVA and Toscafund.
      </p>
    </li>
    <li>
      <p>
        The round valued the company at GBP 460 million (~USD 556.7 million) and its total funding stood at GBP 642.7 million (~USD 777.9 million).&nbsp;
      </p>
    </li>
    <li>
      <p>
        Along with the raise, the company announced that it is pushing its listing aspirations to 2024 or 2025, which it had planned for 2022 or 2023 while it was also on the lookout for investment bankers in 
        <a href="https://sp-edge.com/updates/12910">
          September
        </a>
         this year. This is due to fears about the UK's economic outlook as well as the country&rsquo;s unstable political environment.
      </p>
    </li>
    <li>
      <p>
        Atom Bank has around 165,000 customers with GBP 4.7 billion (~USD 5.7 billion) in deposits and a GBP 2.9 billion (~USD 3.5 billion) loan book, and the company claims to break even over the past few quarters.
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


<div>
  <p>
    <a href="https://www.thetimes.co.uk/article/atom-bank-flotation-off-after-30m-fundraising-pffjqs2rr">
      The Times
    </a>
  </p>
  <p>
    <a href="https://bmmagazine.co.uk/news/atom-bank-suspends-flotation-after-raising-30m-from-investors/">
      Business Matters
    </a>
  </p>
  <p>
  </p>
</div>


Neobanks

Atom Bank raises GBP 30 million from existing investors and postpones listing aspirations

ANALYST_QUICK_TAKE

PROMINENT_CATEGORY

<div>

<p>Grasshopper, a neobank for small to medium businesses, has launched an online application for Small Business Administration (SBA) loans, enabling eligible business owners to get pre-qualified in under 10 minutes.</p>
<p>The digital application is a feature of Grasshopper's business checking account that also offers corporate cards, accounting tools, and productivity software via its partner marketplace.</p>

</div> <p><b>Analyst QuickTake:<br>
 </b> An SBA loan is a type of business loan that is guaranteed by the US SBA. These loans are designed to help small businesses access the kind of funding that larger businesses can obtain more easily, with low interest rates and long repayment terms.</p>

Grasshopper introduces digital applications for SBA loans

<div>
 
 <p>Neobank Mercury has introduced a new product called Mercury Personal, indicating its entry into consumer banking. This product comes with a yearly subscription fee of USD 240 and includes an array of features. The features include a FDIC-insured high-yield savings account, complimentary domestic wire and ACH transfers, as well as customizable debit cards.</p>
 <p>Mercury Personal also provides functionalities for customers to set up automatic transfer rules between accounts, allows additional user access, and offers options to issue multiple debit cards with custom spend limits. Though not immediately available, prospective customers can reserve their spot on a waitlist. General availability for customers based in the US is anticipated later in the year.</p>
 
</div>

Mercury launches Mercury Personal to venture into consumer banking

<div>
 
 <p>N26, a neobank based in Berlin, has launched joint accounts available to its individual customers through its app. The feature is accessible for all membership tiers. </p>
 <p>The joint account is aimed to make management of personal and shared finances easier for users. It allows them to track expenses, gives legal ownership to both parties involved, and assigns a unique International Bank Account Number (IBAN) to each account.</p>
 <p>Customers in 21 markets, including countries like Austria, Belgium, Denmark, Greece, Ireland, and Lithuania have access to this joint account feature. </p>
 
</div>

N26 launches joint account feature across 21 markets

<div>
 
 <p>Bunq, a Dutch neobank providing digital banking services to both individuals and businesses, has successfully secured a sum of EUR 29 million, which roughly equals to USD 30.9 million. This fundraising was possible through a commitment letter that was signed by the bank's existing shareholders.</p>
 <p>This fresh injection of funds is aimed towards strengthening the bank's standing and presence within the UK market. Moreover, it is also intended for the re-entry of the bank into the US market. It's important to mention that the bank had to <a href="https://sp-edge.com/updates/26421"> withdraw </a> its initial application for a US banking license back in the month of February, 2024. This had to be done due to certain regulatory conflicts that arose between the Dutch regulator that oversees Bunq, and the US authorities.</p>
 <p>Despite such obstacles, the bank witnessed a substantial growth in the year 2023. The deposits made to Bunq saw a four-fold increase, reaching a total over EUR 6.9 billion. This is approximately USD 7.4 billion. Similarly, the platform also saw a growth in the user base, which increased to total 11 million users.</p>
 
</div>

Bunq raises EUR 29 million in growth funding for expansion

<div>
 
 <p>Empower Finance, a US-based FinTech firm, has purchased Petal, a digital lending company which provides credit cards to people with low credit history, and Cashalo, a FinTech platform that caters to unbanked and underserved communities in the Philippines. The acquisition costs have not been disclosed. </p>
 <p>The aim of these acquisitions by Empower is to gain access to the credit card industry in the US, and expand into the credit market in Southeast Asia, using the services offered by Petal and Cashalo.</p>
 
</div>

Petal acquired by Empower Finance for undisclosed sum

<div>
 
 <p>Revolut, a UK-based neobank focusing on B2C and B2B sectors, has obtained a banking license in Mexico.</p>
 <p>The license will be used to introduce various financial products and services to assist cross-border transactions for customers in Mexico.</p>
 
</div> <p><b>Analyst QuickTake:<br>
</b> In March 2023, Revolut <a href="https:<br>
//sp-edge.com/updates/18868"> secured the Direct Credit Society (SCD) license </a> from the Central Bank of Brazil, enabling its operation in the country. It now provides a global account offering foreign exchange and remittance capabilities in 27 currencies.</p>

Revolut secures banking license in Mexico

<div>
 
 <p>Adro, a neobank catering to international students in the US, has successfully collected USD 1.5 million in a pre-seed funding round. The funding was spearheaded by Era with contributions from Ex Nihilo Ventures and the Cornell Tech Syndicate.</p>
 <p>The newly acquired capital will be directed towards substantial expansion of Adro's engineering team. It will further expedite the progress of its underlying platform development.</p>
 <p>Established in 2023, Adro's aim is to alleviate the financial hurdles faced by international students in the US. The firm provides these individuals with access to standard banking services which comprises of credit and debit cards. Adro plans to officially launch its services during the later stage of the current year.</p>
 
</div>

Adro raises USD 1.5 million in pre-seed funding for product development and recruitment

<div>
 
 <p>Nubank, a Brazilian neobank, is partnering with global payment infrastructure provider Wise to launch its international debit card and global account, "Ultravioleta," for premium customers. The global account allows users to instantly convert BRL to USD or EUR through the Nubank app, with a conversion rate of 0.9% and a reduced 1.1% IOF (a Brazilian foreign operations tax). Users can make up to two foreign currency withdrawals per month and the debit card is functional in over 200 countries. There are no setup or maintenance fees for the global account and debit card.</p>
 
</div>

Nubank partners with Wise to empower premium customers with global account and international debit card

<div>
 
 <p>The Berlin-based neobank, N26, has introduced a trading platform for stocks and ETFs, which is now available to their German clients.</p>
 <p>Accessible via the N26 mobile app, customers are provided with the ease to trade US and European stocks and ETFs at a cost of EUR 0.90 (approximately USD 1.09) per trade. Nonetheless, individuals with premium memberships are granted free trading services.</p>
 
</div> <p><b>Analyst QuickTake:<br>
</b> The platform was first launched in Austria in <a href="https:<br>
//sp-edge.com/updates/25658"> January 2024 </a> and was developed in partnership with <a href="https:<br>
//sp-edge.com/updates/24499"> Upvest </a> .</p>

N26 launches stocks and ETFs trading platform in Germany

<div>
 
<p>Yonder, a UK's credit card company, has collaborated with Qover, an insurance provider, to offer travel insurance to Yonder's members. This insurance from Qover comprises different benefits including compensation for travel and accommodation, delays or cancellations of departures, winter sports, and stolen baggage among others. The insurance starts to be effective as soon as the customer subscribes for a full membership with Yonder.</p>
 
</div>

All Updates