Latvian online lender Mintos is entering the ever more crowded digital banking market.
The peer-to-peer lender, which sources loans through partnerships with a host of other originators, has today closed a €5m Series A fundraise. The money will be used to develop and launch personal IBAN accounts and debit cards.
Riga-based existing backer Grumpy Investments (previously Skillion Ventures) contributed the capital.
Once launched, Mintos' accounts will allow its peer-to-peer investors to make and receive payments around the world, as well as to have their salaries paid into a Mintos account. The cards may also be used for spending and withdrawing cash globally.
The platform is currently in the process of applying for an e-money licence, which it will need to secure before the launch goes ahead. E-money licences are not the same as banking licences, but are prevalent among early-stage fintechs, including larger firms like Revolut (which is currently in the process of applying for a European banking licence).
Mintos has a team of 60 people at its headquarters in Riga, Latvia, in addition to offices in Warsaw and Mexico City. It currently boasts an investor base of 87,000 people from 71 different countries. The platform has funded a little over €1.25 billion in loans to date, according to AltFi Data.
Its short-term objectives include hitting 300,000 registered investors by the end of 2019, expanding into new global markets and doubling the size of its team.
Martins Sulte,Mintos CEO and co-founder, said in a statement: “Providing customers with a personal IBAN account and debit card will mark a major leap in our services and significantly improve the user experience. Soon, everybody with their own IBAN accounts will be able to give the account details to their friends, companies or customers to get paid, to pay using a debit card, and to continue using Mintos for investing in loans around the globe and earning great returns. Our upcoming mobile app will make it even more convenient.”