Fintonic Becomes Latest Challenger Bank to Receive Banking License

After receiving its banking license from the Bank of Spain last week, personal finance platform Fintonic has become Spain’s newest challenger bank. Having passed all of the certifications, Fintonic is now a payment initiation service provider (PISP) and PSD2 compliant account aggregation service provider (AISP).

“We are very pleased to be pioneers in receiving this license, because it supports our value proposition to always be next to our users helping them with total transparency,” said Lupina Iturriaga, founder and co-CEO of Fintonic.

By becoming a PISP and AISP, the company anticipates it will be able to launch products and services that offer its 800,000 users a better way to manage their money. “Our ambition is to offer an ideal financial service with a platform that integrates different entities while maintaining the standards of independence and transparency promoted by Fintonic,” added Iturriaga.

Fintonic’s flagship offerings include financial management tools, insurance, and lending, which allows customers to take out loans of up to $45,000 (€40,000). The company recently revealed other plans in the works– including account-to-account transfers that happen in near-real time. By the end of this year, Fintonic’s goal is to amass one million users.

At FinovateSpring 2016, Fintonic debuted its alerts and inbox system to help users act in a timely manner on their financial needs and recommendations. The company, which recently received a $21.4 million investment, has $51 million in total funding and, earlier this year, was valued at $180 million.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Fintonic’s $21.4 Million Funding Boosts Valuation to $180 Million

Personal finance app Fintonic earned $21.4 million (€19 million) in a Series C funding round this week. The new investment values the Spain-based company at $180 million (€160 million).

The deal, which brings Fintonic’s total funding to $51 million (€45.2 million), was led by ING Ventures, which holds a 22% stake in the company. The round also saw participation from additional shareholders including the PSN group.

The funding comes at a time of major growth for Fintonic, which has increased its active users by 74% in the last 14 months, bringing its total number of active users to 700,000. In the past year, the company has seen a 45% quarter-over-quarter increase in revenue and expects to break even in the next six months. Since it was founded in 2012, Fintonic has expanded to Mexico and Chile; an expansion that boosted its app downloads to 2.8 million.

Part of this growth is owed to the success of Fintonic’s lending offering, which allows customers to take out loans of up to $45,000 (€40,000). The company expects to lend over $1.1 billion (€1 billion) in less than three years. Helping to make this possible, Fintonic has extended its own financing for the lending platform, issuing a $79 million (€70 million) bond listed on the MARF (Alternative Fixed-Income Market) and approved by the Spanish CNMV (National Securities Market Commission).

In addition to its lending product, Fintonic offers insurance, having obtained an insurance broker license from the General Directorate of Insurance. The company said the offering is part of its goal to help users save money without having to compromise on service.

At FinovateSpring 2016, the company debuted its alerts and inbox system to help users act in a timely manner on their financial needs and recommendations. Last year, Fintonic teamed up with BBVA to boost its in-app lending capabilities, allowing users to borrow up to $39,400. Most recently, the company bolstered its lending offering via a partnership with Unicaja Banco to offer the bank’s consumer loans through its mobile app.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Fintonic Partners with Unicaja Banco to Support Consumer Lending

Spanish personal finance platform Fintonic will offer Unicaja Banco’s consumer loans through its mobile application, reports Henry Vilar of Fintech Futures (Finovate’s sister publication).

The app is free and currently has more than half a million users in Spain.

It uses a FinScore index, which evaluates the credit profile of both clients and non-clients, and offers them the possibility of obtaining financing, without the need to carry out any further procedure and from any mobile device.

This partnership is Unicaja’s first with a fintech and aims to formalize the entire flow of contracting the loan from an external platform or marketplace.

Fintonic’s loans have processed credits to more than 15,000 users, with a total volume exceeding €60 million.

Just last summer, BBVA joined Fintonic’s lending offering.

Unicaja is the seventh bank by market capitalization in Spain. It is currently working in the implementation of blockchain solutions, within the Niuron Consortium.

Fintonic demonstrated the alert and inbox system of its mobile banking solution – which helps users promptly respond to their financial needs, recommendations or product proposals – at FinovateSpring 2016. Founded in 2012, the company has raised more than $29 million (€26.2 million) in funding from investors including ING Group, Inception Capital, Ideon Financial Solutions, Onza Capital, and All Iron Ventures.

Fintonic Links Up with Amazon

Personal finance app Fintonic announced today it will collaborate with Amazon in Spain. Starting next week, Fintonic customers in Spain will be able to finance their Amazon.es purchases ranging from $225 to $1,100 (€200 to €1,000) at a rate of 0% interest for up to four months.

Fintonic Founder and CEO Lupina Iturriaga said, “It’s an exceptional collaboration, as it opens a new way of cooperating between the fintech sector and online distributors, settling new alternatives for users to access e-commerce in beneficial conditions.”

While the idea is similar to point of sale financing, the actual logistics are a bit more complicated. Before making their Amazon purchase, users must first go to the Fintonic app, apply for the credit, and buy an Amazon gift card. The gift card can be used for multiple Amazon purchases and the balance is good for a maximum of ten years.

To apply for the credit, Fintonic users select the gift card amount and choose when they plan to pay the balance. As an underwriting method, Fintonic uses its FinScore, a score between zero and 900 that is determined by more than 160 factors about a user’s creditworthiness. Users with a score of 450 or higher are eligible for the Amazon.es purchase financing.

Founded in 2012, Fintonic is a consumer-focused financial management platform that aggregates all of an individual’s financial accounts to offer a single view of their overall financial health. In addition to helping its 500,000 users keep track of their finances, Fintonic also presents relevant loan and insurance offers through a free brokerage service.

Madrid-based Fintonic has raised almost $30 million, thanks in part to a $28 million round garnered in June of 2017. At FinovateSpring 2016, the company debuted its alerts and inbox system to help users act in a timely manner on their financial needs and recommendations. Earlier this year, Fintonic teamed up with BBVA to boost its in-app lending capabilities, allowing users to borrow up to $39,400.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Fintonic Bolsters Platform’s Loan Options with BBVA Partnership

What do you get when you cross PFM functionality with a full lending platform? Courtesy of a new partnership between Spanish fintech Fintonic and BBVA, we are about to find out.

Fintonic announced today that BBVA will be a part of the company’s loans platform. The innovative bank joins EVO Finance, Wanna, and a growing number of large banks and FIs that have joined Fintonic’s loan platform, which has processed more than €30 million in total loan transaction volume.

“Fintonic goes beyond the traditional PFMS (personal financial management system) and, unlike banks, it is committed to a marketplace that offers loan alternatives from various institutions,” Lupina Iturriaga, founder and general manager of Fintonic said. Fintonic offers a unified digital banking solution that combines all of the user’s basic financial information – banking, insurance, credit cards, loans – into one mobile app. More than 450,000 people are using Fintonic’s app to better understand their spending and saving behaviors. The company boasts that in 2017 its platform saved users €13 million in reimbursed charges and sent more than 278k alerts to warn users about potential overdrafts.

The new partnership with BBVA will enable users of the Fintonic app (available from both Google Play and the Apple App Store) to obtain loans of up to €30,000 without having to leave the app. The platform leverages risk profiles and customer data based on economic, social, and demographic analyses, as well as machine learning prediction algorithms and external sources such as FACTIVA to provide loan approvals in three minutes or less. Fintonic is also the developer of the FinScore, a free, personalized index that gives users information about their credit profile and how it affects the attractiveness of certain financial products.

Founded in 2012 and headquartered in Madrid, Spain, Fintonic demonstrated its technology at FinovateSpring 2016. At the conference, the company highlighted a new innovative alert and inbox system lets users know when they are being charged commissions, when overdrafts occur, and when insurance policies are nearing expiration.

Named to the European Fintech 100 last fall, Fintonic has raised more than $29 million in funding, and includes ING Group, PSN, Ideon Financial Solutions, Inception Capital, Onza Capital, and Atresmedia among its investors. The company was profiled by La Voz de Galicia this spring.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.