Competition is heating up in the neobank market, and new entrants have no choice but to target a specific profile to stand out from the crowd. This is what Vybe, a mobile bank dedicated to 13-17 year-olds, has done.
100,000 pre-registrations within 15 days
Vybe was launched in 2019 to support young people in their financial education and help them become self-sufficient with the help of their parents. While other players are already positioned in this market, such as Kard, Xaalys and PixPay, Vybe has managed to make a difference: during its creation phase, without a mobile app, the startup collected almost 100,000 pre-registrations in just 15 days. The mobile app was launched in December 2019, enabling users to pre-order a payment card and sponsor friends. Today, Vybe has been downloaded more than 270,000 times and has 170,000 pre-orders.
In an interview, Vincent Jouanne, co-founder of the neobank, explains these significant figures by the choice made during the launch phase to involve users more than competitors do. In fact, unlike other players on the market who only collected teenagers' telephone numbers, Vybe enabled them to quickly order their card and invited them to join the community on social networks.
A virtually free service available from age 13
Vybe's offer is available from the age of 13, and consists of a payment account with no overdraft facility, and a prepaid MasterCard. This card cannot be used for withdrawals or purchases if there are insufficient funds in the account. Sending money is immediate and secure, and instant or traditional bank transfers between two Vybe accounts are free. However, a fee of 1 euro is charged for each new transaction after 3 ATM withdrawals.
13-17 year-olds also have access to a number of features to help them better manage their savings: automatic rounding on every expense, monthly savings planning, savings with the help of partners.
The mobile bank's co-founder points out that at the pre-order stage, the teenager's parents are not directly involved. However, they must give their consent for the card to be sent. " Parental validation will take place 15 days before the first cards are issued, scheduled for September," he adds.
2.2 million euros in fundraising
The startup managed to raise 2.2 million euros a few months before its launch. Several private investors took part, including Ronan Le Moal, ex-CEO of Arkéa, and the CEO of startup studio eFounders, Thibaud Elzière.
At a time when most neobanks are failing to turn a profit, Vybe's co-founders estimate thatthey will be able to generate 40 euros in revenue per user. 7 to 8 months after its launch, the company even indicates that it should "generate a net profit per customer".