The deal between Monese and HSBC will see the banking giant take a minority stake in Monese while Monese will help boost HSBC's banking-as-a-service proposition.
Monese has landed a $35m investment from Europe’s largest lender HSBC, as part of a broader deal which will see HSBC take a minority stake in Monese and boost its banking-as-a-service proposition through the fintech.
To date, Monese, which is based in London and Tallinn, has raised $208m.
Monese, set up in 2013, is an app-based fintech offering current accounts and focuses on customers who struggle to get financial services from mainstream banks.
Taylan Turan, group head of retail banking and strategy, wealth and personal banking at HSBC, said: “HSBC is continually pioneering new wealth and banking innovations for our digitally-savvy customers - we want to help clients make smarter decisions so they can meet their financial goals with innovative digital tools.
“This new partnership is a key step towards helping us deliver digital wealth and banking tools at pace and scale, combining Monese’s fintech credentials with our own global wealth and banking capabilities.”
“Our investment will provide stronger strategic alignment and enable us to build on our strengths as partners.”
Koppel said: “Securing the support of a tier one global bank demonstrates the strength of our platform and the continued appetite from investors in the platform.
“I am delighted to have such a distinguished partner and investor in HSBC, who brings a great deal of experience in delivering exceptional banking services. We look forward to taking this partnership forward.”
The latest results for Monese for 2020 show it made a loss of £31.1m with revenues of £16.3m.
Banking-as-a-service is becoming an increasingly hot area in finance and many industry executives expect banking-as-a-service to make a notable impact on finance in the future.