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      <p>
        Pockit, a UK-based digital bank that serves underserved populations, has announced plans to acquire Monese, a UK-based neobank that serves B2C and B2B segments, for an undisclosed sum.
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      <p>
        Through the acquisition, Pockit aims to consolidate its position, offering financial services for underserved and lower-middle-income consumers across the UK and Europe. The combined entity will reportedly serve ~3 million customers and generate almost GBP 30 million (~USD 39.1 million) in annualized revenue. 
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        Pockit and its shareholders plan to inject up to GBP 15 million (~USD 19.6 million) in equity capital to fund the integration and future growth of the business. Following the completion of the transaction, the two companies will also continue to operate separately.&nbsp;
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        Following the acquisition, Pockit aims to launch new services and benefit from Monese's regulatory infrastructure, operational synergies, and complementary product offerings such as multi-currency accounts and salary advance offerings.
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  <p>
    <a href="https://hello.pockit.com/press-release">
      Press release
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  </p>
</div>


Neobanks

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 <p>Pockit, a UK digital bank serving underserved audiences, plans to buy Monese, a UK neobank that serves both B2C and B2B segments, for an undisclosed sum. This acquisition is part of Pockit's strategy to consolidate its role, providing financial services to underserved and lower-middle-income consumers in the UK and Europe. The combined entity will reportedly serve approximately 3 million customers and generate nearly GBP 30 million (roughly USD 39.1 million) in annualized revenue.</p>
 <p>For the integration and future expansion of the business, Pockit and its shareholders plan to inject up to GBP 15 million (approximately USD 19.6 million) in equity capital. The two companies will continue to operate separately after the transaction is completed. </p>
 <p>Upon acquisition, Pockit intends to launch new services by tapping into Monese's regulatory infrastructure, operational synergies, and complementary product offerings. These go from multi-currency accounts to salary advance offerings.</p>
 
</div>

Pockit to acquire Monese for undisclosed amount to consolidate position as leading FinTech for underserved consumers

ANALYST_QUICK_TAKE

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 <p>Canadian neobank, KOHO has successfully raised funding worth CAD 190 million (approx. USD 141 million). This sum comprises CAD 40 million (roughly USD 29.6 million) in equity and CAD 150 million (around USD 111 million) in debt. The fundraising initiative was led by PROPELR Growth and saw participation from Rockefeller Capital, Drive Capital, TTV, and BDC. The total funds now owned by KOHO sum up to USD 547.5 million.</p>
 <p>The recently acquired funds will be channeled towards expanding KOHO's lending services, enhancing its product portfolio, and aiding the progress in obtaining a Schedule 1 bank license in Canada.</p>
 
</div> <p><b>Analyst QuickTake:<br>
</b> The company secured an additional CAD 86 million in <a href="https:<br>
//sp-edge.com/updates/24758"> December 2023 </a> as an extension to its Series D funding round, which began in <a href="https:<br>
//sp-edge.com/updates/8192"> February 2022. </a> The capital was utilized to expand its product portfolio.</p>

KOHO raises CAD 190 million in equity and debt funding to pursue bank license

<div>

<p>UK-based neobank, Starling Bank, has been fined GBP 29 million (~USD 39 million) by the Financial Conduct Authority (FCA) due to having inadequate financial crime controls in place between 2021 and 2023. The bank was serving both B2C and B2B segments.</p>

<p>According to the FCA, the bank's anti-money laundering procedures were insufficient. This resulted in around 54,000 high-risk customers opening accounts despite being previously instructed against doing so. The imposed fine was reduced by 30% due to the bank's full cooperation throughout the investigation. </p>

<p>In response to the issues highlighted by the FCA, Starling Bank has committed to enhancing its board governance and capabilities.</p>

</div>

Starling Bank fined USD 39 million for inadequate financial crime controls

<div>
 
 <p>Propel Holdings, a provider of lending services, has raised around USD 74 million through a bought deal offering of subscription receipts, each priced at approximately USD 20. The offering was led by Canaccord Genuity and Scotia Capital, and with an over-allotment option, the total funds raised could potentially reach up to USD 85 million.</p>
 <p>These funds will largely be used for the acquisition of QuidMarket, a UK-based digital lender, which is pending regulatory approval and expected to be closed between Q4 2024 and early Q1 2025.</p>
 <p>This acquisition is a significant part of Propel’s strategy to expand globally, being its first entry into the UK market. Propel plans to utilize its AI capabilities, financial expertise and capital to support QuidMarket's growth and improve its product offerings for UK consumers.</p>
 <p>QuidMarket, established in 2011, is a specialist in credit for underserved consumers and has originated over 310,000 loans. It recorded revenue of approximately USD 27.7 million and a net income of USD 9.6 million at the end of June 2024.</p>
 <p>Propel Holdings, also established in 2011, is a FinTech firm that offers innovative credit solutions for underserved consumers via its AI-enabled online lending platform, analyzing over 5,000 data points to evaluate a consumer's financial status.</p>
 
</div>

Propel Holdings to acquire QuidMarket for USD 71 million; raises CAD 100 million through bought deal equity offering of subscription receipts

PROMINENT_CATEGORY

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 <p>Revolut, a UK-based neobanking platform, has introduced a standalone wealth management app called Revolut Invest. The new app provides access to 5,000 assets, including US and European stocks, ETFs, commodities, bonds, and contracts for difference (CFDs).</p>
 <p>The app is currently being piloted in Greece, Denmark, and the Czech Republic, integrating features from Revolut's wealth management business. Revolut Invest also offers a premium subscription tier, Trading Pro, which gives users benefits like reduced commission fees, increased limits, and analytics.</p>
 <p>With this standalone app, the company is targeting a wider user-base outside its existing bank clients. The plan is to extend Revolut Invest to other European Economic Area countries by the end of the year and eventually launch in the UK, US, Singapore, and Australia.</p>
 <p>Presently, Revolut serves a global user-base of 45 million users, 500,000 businesses, 3 million active traders, and 20,000 premium investment account subscribers.</p>
 
</div>

Revolut launches standalone wealth management app Revolut Invest

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 <p>Bunq, a Dutch digital banking neobank, has launched stock trading on its platform. The service, initially for users in the Netherlands and France, will be gradually extended across Europe. </p>
 <p>With this feature, users can directly invest in a variety of stocks and ETFs via the Bunq platform. The process of setting up an investment account and beginning to trade stocks is quick. The platform supports buying and selling of fractional shares, and the minimum investment required is just EUR 10. As a welcoming gesture, all transactions will be commission-free for the first three months post account creation.</p>

</div> <p><b>Analyst QuickTake:<br>
 </b> Neobanks are actively expanding their offerings to provide comprehensive financial solutions beyond traditional banking services, either through in-house developments or partnerships, to diversify operations, meet diverse customer needs, and improve retention. Recent examples include <a href="https:<br>
//sp-edge.com/updates/31392"> N26's launch of stocks and ETFs trading </a> and <a href="https:<br>
//sp-edge.com/updates/32955"> KOHO's tenant insurance and rent reporting </a> .</p>

Bunq launches stock trading with access to US and European stocks and ETFs

<div>

 <p>Oportun, a lending products provider for middle- and low-income people, has completed a USD 306 million committed warehouse facility extension with Goldman Sachs as the primary lender and Jefferies as the secondary lender.</p>
 <p>This extended facility has a new two-year revolving period and is collateralized by Oportun's unsecured and secured personal loan originations.</p>

</div> <p><b>Analyst QuickTake:<br>
 </b> This marks the company’s second warehouse facility secured in two months. In August, it obtained a USD 245 million committed warehouse facility from Deutsche Bank and Jefferies, with funds earmarked for its growth.</p>

Oportun secures USD 306 million in warehouse facility extension from Goldman Sachs and Jefferies

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 <p>The Canadian neobank, KOHO, has entered into a partnership with Propel, a FinTech platform specializing in providing credit solutions. The collaboration will expand access to lending for KOHO users via Propel's AI-powered credit lending platform.</p>
 <p>The alliance facilitates qualified KOHO users to access credit lines from Propel's Canadian brand, Fora Credit, directly in the KOHO app. KOHO will supervise the user interface, meanwhile, Propel will manage the technology, underwriting, service, and funding of the loans.</p>
 
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KOHO partners with Propel to offer embedded lending services to Canadian users

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 <p>UK credit card company, Yonder, has raised GBP 23.4 million (~USD 31.1 million) in a funding round headed by RTP Global, accumulating a total capital of USD 142.6 million so far. The raised funds will be utilized to expand their team, initiate new rewards programs, and to speed up its market expansion beyond the UK before the end of the upcoming year.</p>
  
</div> <p><b>Analyst QuickTake:<br>
</b> The company's last funding round was in April 2023, when it raised GBP 62.5 million <b> </b> (~USD 77.4 million) in a <a href="https:<br>
//sp-edge.com/updates/17771"> Series A </a> round. The funds were allocated to launch new services and expand its workforce. Over the past year, Yonder introduced a free membership tier, made product improvements, and launched Yonder Flights, allowing cardholders to redeem points for any flight with any airline worldwide.</p>

Yonder secures GBP 23.4 million in funding to expand services beyond UK

INCUMBENTS_PRESENT

<div>
 
 <p>MoneyLion, a digital banking and investment provider, has collaborated with TransUnion, a credit reporting agency. The aim is to provide consumers with customized financial solutions.</p>
 <p>This alliance includes integrating TransUnion's data and credit services into MoneyLion's credit-decisioning platform and consumer finance experiences. This integration aims to deliver tailor-made and relevant financial offers to customers.</p>
 
</div>

All Updates

Pockit to acquire Monese for undisclosed amount to consolidate position as leading FinTech for underserved consumers

KOHO raises CAD 190 million in equity and debt funding to pursue bank license

Starling Bank fined USD 39 million for inadequate financial crime controls

Propel Holdings to acquire QuidMarket for USD 71 million; raises CAD 100 million through bought deal equity offering of subscription receipts

Revolut launches standalone wealth management app Revolut Invest

Bunq launches stock trading with access to US and European stocks and ETFs

Oportun secures USD 306 million in warehouse facility extension from Goldman Sachs and Jefferies

KOHO partners with Propel to offer embedded lending services to Canadian users

Yonder secures GBP 23.4 million in funding to expand services beyond UK

MoneyLion partners with TransUnion to deliver personalized financial solutions

Neobanks

Pockit to acquire Monese for undisclosed amount to consolidate position as leading FinTech for underserved consumers

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