It arose as an act of rebellion. Tired of the commissions, the fine print and the bureaucracy, a group of entrepreneurs joined forces and two million euros to set up an alternative to traditional banking. “We decided to create a quick and simple proposal. Especially clear in its conditions, "he says.
Albert Llorens, CEO of Bnc10, which has been integrated into the growing list of so-called neo-banks: digital firms that promise to revolutionize the financial business. "We are the future", says the head of the company, which in less than a year has captured some 40,000 customers. The idea began to come to life in early 2018. Manel Vallet, member of the family that owns Catalonia Hotels, was the main driving force. It brought together about thirty investors. "Afterwards, an agreement was made with the English entity Prepaid Financial Services [owner of the banking license that allows them to market financial products] and various professionals with experience in the sector were invited," explains Llorens. Everything was done in 14 months. In September of last year they launched their first product: a checking account linked to a card that can be controlled from an app. Your hook? "Zero commissions," says the firm's CEO.
The business
In recent years, neobanks such as Bnext, Revolut, Rebellion or 2gether have found fertile ground in Spain. "Its main attraction is its ease of use," stresses Rodrigo García de la Cruz, president of the Spanish Association of Fintech and Insurtech (AEFI).
"80% are Spanish and the rest are in the United Kingdom, France and Italy," says Llorens. For this year, the company expects to exceed 80,000 users, with whom it communicates via WhatsApp. The figure is far from that of other competitors: the German N26 arrived in the country in 2018 and already has some 400,000 clients.
And the coronavirus arrived
Expectations, however, sail in a sea of uncertainty. The economic slowdown caused by the Covid-19 could leave an imprint. On the one hand, new entrants can boost their business only if they are able to respond at times of increased online traffic, says an analysis by Funcas. On the other hand, less activity is causing a slowdown in the creation of new accounts, says Funcas, and also in the number of transactions. This would affect the Bnc10 business, as up to now it is its main source of income. "We get a percentage of all payments made in stores each time our customers use their card," explains Llorens.
In any case, the pandemic is not totally bad for Bnc10. According to data from the company itself, it has added 10,000 new clients in the last three months, in full confinement. "With traditional bank branches closed, digital signatures were the option for those who wanted to open an account," says Llorens. The company plans to invoice one million euros this year.
"We will see many new banks in the coming years," says Salvador Casqueiro, professor of the digital innovation and fintech program at the Institute for Stock Market Studies (IEB). "The traditional banking model will not disappear, but it will be forced to compete with businesses born in the digital age."
