The neobank for professionals joins forces with Société Générale to enhance its offering and forge closer ties with Treezor, its long-standing partner. These synergies between the two players will enable them to provide even better support for entrepreneurs as they grow.
Providing comprehensive support for entrepreneurs
Société Générale has announced the acquisition of Shine. Launched in 2018 by Nicolas Reboud and Raphaël Simon, the startup combines all the functionalities needed by self-employed workers to enable them to move serenely through the French administrative maze. More than a bank, Shine offers a 100% online pro account as well as a personal administrative assistant.
The amount of the transaction has not been disclosed, but is believed to be in the tens of millions of euros. Although Shine boasts almost 70,000 customers in 2 years, it is not yet profitable. The neobank has only raised 10.8 million euros since its inception. Through this acquisition, Societe Generale intends to broaden its existing offering for small and medium-sized businesses. For its part, Shine is moving closer to Treezor, acquired by the banking group in 2018, on which it had relied to design its solution.
Develop broad synergies within the Société Générale Group
"The synergies created between the two partners will enable us to go faster and further in serving new Professional customers, with the ambition of being the French leader in this market," explains the bank in its press release. Solutions such as credit, insurance and payments will be offered to Shine customers, with the aim of simplifying the banking experience for entrepreneurs.
The red and black bank was the first to acquire a Fintech in 2015 with Fiducéo and then, more recently, with Lumo and Treezor. The acquisition of Shine confirms its major role in the Fintech ecosystem and its ability to adapt to customer expectations.
Closer collaboration between banks and startups
Faced with new challenges in terms of security and simplification, banks are turning to startups positioned in services for the banking sector. Fintechs are not seen solely as competitors, and can provide these establishments with complementary offerings or technologies in a number of areas.
Recent initiatives by banks demonstrate their interest in professional and very small business customers. Crédit Agricole, for example, has just launched its own neobank for pros, called Blank. In December 2019, Crédit du Nord also launched Prismea, a 100% digital bank aimed at auto-entrepreneurs, craftsmen, self-employed professionals, freelancers and TPE/PMEs.
Traditional banks are facing fierce competition in the professional banking market. Memo Bank (formerly Margo Bank), for example, has obtained its banking license and plans to enter the French SME market in September.