Independence from a mother company is a key element for success
GlobalData found that the Royal Bank of Scotland’s digital challenger bank, Bo, has closed after just 5 months after its launch.
According to a statement, after spending £100 million Bo managed to attract only 11,000 customers. For comparison, that’s 1/20th of the number of people who downloaded Monzo in February 2020 alone.
Nevertheless, this sequence of events is by no means inevitable. For instance, Up, the result of a partnership between tech company Ferocia and Bendigo and Australian Adelaide Bank has been successful.
It has gained 185,000 customers with at least $68 million in deposits since its launch 18 months ago and keeps on growing at up to 1,000 users a day.
We’ve reported that the UK bank GoHenry has recently unveiled its sustainable debit card, made from a renewable material called polylactic acid (PLA). Unlike most cards, which are made from petroleum, coal, and crude oils, PLA is derived from field corn.