The verticalisation of neobanks & why personalisation is the future of banking ❤️🏦; Nexo to swoop Vauld as crypto M&As intensify 💸; eToro's failed SPAC signals challenges in retail trading space 🚩

Good Morning FinTech, 6 July

Good evening Everyone,

And happy Wednesday! Today is Statehood Day in Lithuania (July 6 is celebrated to commemorate the coronation in 1253 of Mindaugas as the only King of Lithuania 👑), so the newsletter is coming a bit late. But it doesn’t have any impact on the excitement as today we’re looking at the verticalisation of neobanks & why personalization is the future of banking, Nexo buying Vauld as crypto M&As intensify, and eToro's failed SPAC that signals challenges in the retail trading space. Let’s jump straight into the good stuff:

The verticalisation of challenger banks and why personalisation is the future of banking ❤️🏦

The launch 🚀 There’s a new challenger bank in town. It’s called Novus and its aim is to create an ecosystem that connects consumers’ spending habits to purpose-driven brands and sustainable projects.

After raising $5M, Novus officially launched to the UK public back in February and currently counts 10,000 customer accounts.

The ethical challenger bank 🏦 At the core, Novus is a banking app, within which sits a marketplace, with 130 “ethical” brand partners, which includes the likes of HelloFresh, Just Eat, and Ocean Bottle. Novus offers cashback rewards for its customers, which spend with its “ethical” partners. 

Also, every time Novus user taps their cards, a percentage is donated to various environmental and social causes.

Biz model 💸 Challenger bank’s main revenue stream is taking a commission from its brand partners, and it also makes money through interchange fees as well as taking a cut should its customers make an active charitable donation.

Why does this matter? 🤔 Novus is yet another proof that challenger banks are getting more verticalized and that personalization is the future of banking. Here’s the takeaway: