Fintech, Finance, Technology, Banking Highlights – 12 April 2018

Monzo introduces overdrafts

Digital challenger bank launched overdrafts as part of the Monzo current account. This is the latest in a number of recent milestones for the UK bank.

Monzo’s current account customers will be able to find out if they are eligible for an overdraft in their app from today as the roll out to over 500,000 customers begins. Since launching an overdraft preview in August 2017, Monzo have tested extensively with a small number of customers to build an overdraft that’s easy to use and simple to understand.

Monzo’s straight forward overdraft fees are set at 50p per day. The maximum customers will ever pay is £15.50. Customers can keep on top of overdrafts and get real-time updates on the fees they have incurred from within the app. To protect customers from unwanted fees, Monzo have set a fee free £20 buffer to allow for delayed transactions that can take customers into overdrafts unexpectedly.

Monzo CEO and Co-founder, Tom Blomfield said: “Offering overdrafts to our customers is a milestone we’re pleased to reach. This wider roll out is another important step towards building a bank account that really works for customers.

We’ve been mindful throughout the development of Overdrafts to make sure they are fair, transparent and really put customers in control of their money. When used responsibly, overdrafts can be a useful tool to manage your money. But for some, living in an overdraft has become the norm , while a raft of hidden fees and charges can push people deeper into

To make sure customers are in control, we send notifications when they’re approaching an overdraft. If a customer chooses to use an overdraft, we charge a simple, flat fee of 50p per day. Otherwise, the account simply shuts off at zero. There are no hidden fees or charges whatsoever.”

Telia Finance selects Temenos to provide digital banking platform

Temenos, the banking software company, announced that Telia Finance, an independent company acting as a finance engine for Telia Company, a leading telco with a Nordic/Baltic footprint, has selected Temenos T24 Core Banking as its financial technology platform. Temenos’ technology will help Telia Finance achieve its goal of significant growth in its customer base.

Temenos’ packaged, modular banking software will enable Telia Finance to offer a wide spectrum of new lending and leasing products and services to its retail and corporate customers. It will also allow Telia Finance to drastically accelerate loan approval processes and enhance the client service it offers. Temenos T24 provides the multi-company, multi-country and multi-currency capabilities which are required to support the company’s future geographical expansion. The system also provides the flexibility which Telia Finance needs to scale its business in terms of the number of customers.

Temenos T24 is set to go live in four Nordic countries within 12 months. The system will be deployed in a single instance. The implementation will be based around Temenos’ Model Bank approach, which provides a pre-configured technology structure, including built-in compliance with regional requirements. In this way, Telia Finance will be able to ensure the quickest possible implementation timeframe.

Marcus Söderberg, COO, Telia Finance, said: “We have a heritage of being at the forefront of technology and innovation to better serve our clients. We want to make it possible for each of Telia Company’s customers to find exactly the right solution to suit their requirements both now and in the future. We selected Temenos software so we can offer our customers innovative and competitive finance solutions tailored to their needs. Temenos’ cutting-edge technology will allow us to reduce time-to-market for a multitude of finance solutions for our retail and corporate clients, and enhance our levels of service. In the future, we will be able to quickly perform eligibility checks and approve, for example, a handset loan in less than a minute.”

Liberis secures £57.5m in funding

Leading small business finance provider, Liberis, has secured £57.5m in combined funding from British Business Investments, Paragon Bank, BCI Finance, and Blenheim Chalcot.

This new facility and equity investment will accelerate Liberis’ growth to help support an estimated 100,000 UK jobs by 2020, providing huge social and economic benefit to the UK economy.

Building on its ongoing partnership with British Business Investments – the commercial arm of the British Business Bank – to fund small UK businesses, Liberis has entered new financing facilities with British Business Investments and Paragon Bank, as well as BCI Finance with whom they have extended terms on their mezzanine line.

In addition, the London-based alternative finance provider has also received incremental equity funding from the UK’s leading digital venture builder Blenheim Chalcot, which has nearly 20 years’ experience of building technology-based companies and a specialism in financial services.