How a Banking License Evolved Neo’s Vision

Neo was founded in 2017 with a vision, as described by CEO Laurent Descout, “to create a platform that can replace the old fashioned banking platform. A true ‘one-stop shop’ that offers all the financial products a corporate client needs to operate in a global environment.”

The Spain-based company demoed its business account platform at FinovateEurope. At the event Descout, along with the company’s Chief Product Officer Emmanuel Anton, showcased how Neo offers a single place where businesses can manage their collections and payments across 30 currencies.

Neo also showed the audience (check out the video below) its FX hedging engine that enables businesses to hedge their FX risk over 90 currencies. The company offers a range of FX instruments, such as forwards, swaps, and options, as well as pre-designed hedging strategies.

Last July Neo received authorization from the Bank of Spain to become a PSD2-compliant payment institution. The new license will enable Neo to offer multicurrency business accounts, allowing companies to pay, store, and receive 25 different currencies. Among those are exotic currencies such as CNY, SAR, MXN, and TRY. Neo reports that it will add 15 currencies to the list soon.

The new banking license converts Neo’s website into a gateway of business-focused services. In addition to Neo’s flagship FX hedging solutions and the new multicurrency payments and collections tools, users have access to treasury management tools that allow clients to reduce costs and digitize their treasury department. Porting their treasury management tools to a digital environment allows businesses to automate tasks and reduce the human errors that result from manual input.

Neo has also made other recent developments, as well. The company has added new liquidity providers in its liquidity pool to offer users better prices. It also started offering hedging maturities up to 24 months and began offering currency deposits for clients holding USD, GBP, and PLN. Additionally, Neo landed a partnership with BPIFrance to build an FX offering for exporters.

Neo has raised $5.4 million since it was founded in 2016. The company’s founders include Emmanuel Anton, Ian Yates, Laurent Descout, and Nuria Molet.

Spain Approves Neo as a B2B Challenger Bank

Corporate banking startup Neo announced it has just been authorized to offer multicurrency business accounts. The approval comes from the Bank of Spain and allows Neo to create a PSD2 payment institution.

“Our vision back in 2017 was to create a platform that can replace the old fashioned banking platform. A true ‘one-stop shop’ that offers all the financial products a corporate client needs to operate in a global environment,” said Laurent Descout, CEO. “Operating with Neo does not require any complex installation. It is 100% on demand with the client being in complete control. The platform ensures clients can reduce costs and increase efficiency by reducing manual tasks and improving processes. Our 100% API approach also offers clients great automation possibilities.”

By “one-stop shop” Descout means that Neo offers both investment and payment services and aims to bring all corporate finance functionalities together on a single platform.

Hosted on a core banking platform developed by Neo Fintech Lab in the U.K., Neo’s multicurrency account allows account holders to receive, store and pay in 30 currencies. The bank also enables clients to digitize their treasury department and offers features inspired by treasury management systems.

These banking products will run in tandem with Neo Capital Markets’ FX hedging services, which allow clients to hedge 90+ currencies and receive or make payments in 30+ currencies.

Receiving its banking license places Neo in competition with the likes of Sweden’s Klarna, which received its banking license in 2017, and Transferwise, which offers a borderless account that allows accountholders to receive funds from 30+ countries.

Neo’s multi-currency account will be available in Spain, France, U.K., and Poland in 2020.

At this year’s FinovateEurope conference in London, Descout, along with Neo’s Chief Product Officer Emmanuel Anton, demoed the company’s risk management solution and FX hedging engine. The company has 20 employees and has raised $5.6 million (€5 million).

Categories: NEO

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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.

FinovateEurope Sneak Peek: NEO

A look at the companies demoing live at FinovateEurope on February 12 through 14, 2019 in London, U.K. Register today and save your spot.

NEO’s FX Hub allows corporates to hedge any type of FX risk. NEO offers transparent access to FX markets, coupled with prime pricing and automated execution.

Features

  • Cost efficient: NEO reduces hedging costs from Day One
  • Automation/STP: API access in order to connect easily with client’s TMS/ERP system
  • Front to Back: NEO offers full post execution management

Why it’s great
NEO FX Hub is able to migrate any type of corporate FX risk. NEO FX Hub can automate any FX hedging process. It can be implemented in less than 24 hours at the treasury team level with no IT involvement.

Presenter

Laurent Descout, CEO and Founder
Descout is a fintech entrepreneur with experience in payment institutions and FX hedging. He has worked for more than 10 years as a financial advisor in structured finance.
LinkedIn

 

Emmanuel Anton, Chief Product Officer and Founder
Anton had led the implementation of several trading systems for the fintech industry. He has worked for major financial institutions as a senior IT consultant.
LinkedIn

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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.