2024-05-15 17:18:00
It’s the results of a protracted means of transformation of the monetary mannequin right into a fintech, change into a unicorn (in 2021), and who need to be a financial institution right now. Initially, in 2014, Lydia was one of many pioneers of P2P (peer-to-peer) cell funds in France, aimed toward college students. The success is there (the switch is free) and ” make me a Lydia » turns into a campus basic. However in a short time, fintech tried to develop its supply… and diversify its earnings.
From 2016, the startup undermined its authentic mannequin by providing a cost card (paid), backed by a Lydia account (itself backed by a financial institution card to fund it) and managed from the applying cell. Three years later, Lydia succumbed to {the marketplace} mannequin (of monetary merchandise), higher often called “ nice app “. There’s additionally the selection between fintechs reminiscent of Revolut and even Klarna.
Life and dying of the tremendous app
This includes organising partnerships to construct, brick by brick, a platform for monetary providers, kind of built-in into the cell utility. Lydia has thus diversified, with kind of success, into residence insurance coverage (with Luko, now defunct), monetary teaching (with Papernest), crypto buying and selling (with Bitpanda) and even credit score (with FLOA). The thought is to remodel younger college students who use P2P transfers into shoppers of on a regular basis monetary providers.
However in 2023, Lydia determined to make a radical strategic turnaround and abandon the concept of ” nice app “. Already the founder and director, Cyril Chiche, had seen the significance of attracting deposits to steadiness the mannequin. This has even change into evident with the rise in rates of interest.
A primary step was taken with the launch of the Lydia account, which primarily resulted in unclear communication with clients concerning the precise content material of the corporate’s supply. Consequently, originally of the yr, Lydia needed to cut up its actions in two, between Lydia (Lydia Options), refocused on its authentic job of prize pool and P2P switch, with greater than 8 million customers, and Lydia Accounts, whose final calling is to be a common financial institution.
What doesn’t change, nevertheless, is Lydia’s want to stay in B2C (going through the tip buyer) whereas an amazing majority of fintechs have turned to B2B in an try to discover a worthwhile mannequin. Finally, nevertheless, it’s fintechs aimed on the finish buyer that have the strongest development, reminiscent of Lydia or Qonto in France, or Revolut, Clever or N26 in Europe.
100 million funding
The announcement this morning of the launch of a brand new model, Sumeria (in tribute to the Sumerians who invented writing), which truly brings collectively the banking supply of Lydia Comptes (at present 2 million clients), is subsequently the end result of this new technique. The ambitions are clearly proven: 5 million clients ” banking providers » inside three years.
And the assets placed on the desk are important: 100 million euros, financed by inside assets. Fintech has collected round 235 million euros since its launch and nonetheless counts amongst its shareholders the Chinese language Tencent (WeChat and WeChat Pay). Coincidentally, UK fintech Revolut has additionally simply introduced a 100 million funding plan in France!
Sumeria is subsequently a present account. Recipe? An account that earns 2% – a rarity within the French banking panorama regardless of the abundance of time period accounts and elevated financial savings accounts – but in addition the simplicity of the client journey, which is a sort of ” model » by Lydia. The interest-bearing account is made attainable by the rise in rates of interest, but in addition by “ low structural pricese”. In line with Cyril Chiche, the disturbance will subsequently come from “the emergence of a digital actor that, like Uber, Airbnb or Spotify, transforms its sector due to a radically lighter value construction”.
Nevertheless, the fintech plans to rent 400 individuals in three years – out of a present workforce of 250. Fintech should keep in mind the setbacks of many neo-banks that grew too quick, like N26, with out offering the required funds to make sure banking compliance.
The European battle
Nevertheless, fintech has all the time been in a position to assist its improvement due to new applied sciences, reminiscent of chatbots, and right now it depends on AI to assist clients and account managers.
Fintech, which has standing as a cost establishment and likewise, extra just lately, as a monetary establishment, is within the means of being accepted for full-function banking standing, which is tougher to acquire. A financial institution just isn’t actually a financial institution with out credit score, and particularly with out actual property credit score. That is additionally the rationale why Revolut is launching property credit score in France.
She desires to make her model a really European model. It would subsequently should face fintechs which are already properly established underneath the European banner, reminiscent of N26 or Revolut. In France, BoursoBank (Société Générale) wins with a brand new goal of 8 million clients and Hallo Financial institution! (BNP Paribas) is relying on the switch of the Orange Financial institution portfolio to scale back the hole.
1715808380
#funds #mates #common #banking #fintech #Lydia #change #dimensions