The banking group has announced that it has completed a €20 million financing round and obtained its credit institution authorization from the French banking regulator, the Autorité de Contrôle Prudentiel et de Résolution (ACPR). Its offer will be available from next September.
An independent bank for SMEs
"We're not a fintech. We're a real bank," says Captain Train founder Jean-Daniel Guyot of his new venture. Founded in 2017 under the name Margo Bank, Memo Bank's ambition is to support companies in their growth, those with between 10 and 250 employees and sales of between €2 and €50 million.
In the midst of the Covid-19 crisis, the establishment has obtained approval from theACPR and the European Central Bank (ECB) to offer its payment, deposit and credit services. " It's the first time in France in 50 years" that a neobank independent of any traditional bank has obtained this approval, Mr. Guyot declared during a press teleconference.
On its website, the bank states that, initially, access will be granted to a limited number of customers from the start of the school year. The bank then hopes to welcome a wider public, giving priority to companies based in the Paris region and Lyon, with annual sales in excess of €2 million. More specifically, from September onwards, Memo Bank will offer the following services to business owners: a modern, collaborative current account, and loans at attractive rates to finance tangible or intangible projects.
New fundraising
To finance its expansion, the neobank has just closed a new €20 million round of financing from institutional investors and experienced entrepreneurs. In particular, Memo Bank can count on the support of Bpifrance Investissement, the investment fund BlackFin Capital Partners and Daphni. Ronan Le Moal, a former Fortuneo and Crédit Mutuel Arkéa executive, is Chairman of the bank's Supervisory Board. He is supported by entrepreneur Jacques Veyrat and former HSBC France executive Gilles Denoyel.
To reach its target of 4,000 customers in 4 years, the group will rely mainly on "experienced bankers in the field" and word-of-mouth. However, Memo Bank is far from being the only one to have an offer aimed at business owners. Manager.one, Shine and N26 also target professionals. In addition to these players, traditional banks are developing new in-house startups to appeal to this clientele. Crédit Agricole, for example, has launched its neobank for professionals.