Paris-based business bank Memo Bank is offering a new product three months after obtaining its full banking license, the company said on Wednesday (Sept. 30).
The bank is touting its new interest-bearing account as “an innovative current account with no volume fees that starts accruing interest from the very first euro,” which it describes as “a perk unlike anything other business banks are offering.”
Rates vary between “0.15 percent and 0.30 percent and apply to deposits of up to $117,000 or $134,000,” the bank’s news release states.
“Today’s SMEs need to be able to forecast accurately. This is why we decided not to charge volume fees, which can be unpredictable and a bit of a black box for clients,” Jean-Daniel Guyot, co-founder and president of the management board of Memo Bank, said in a prepared statement.
The company says that to increase ease of use for managers and executives, its products have been “reimagined and retooled to better meet the needs of both executive and administrative staff. For example: A robust search function combined with an unlimited history means finding a specific transaction takes a split second; a secure and easy-to-use batch transfer function means salaries can be paid in a couple of clicks; and, a paperless user profile function means new users with custom permissions can be created, invited and modified quickly and securely — all online.”
Memo Bank also says it is offering a “streamlined application process” for financing.
“In order to be able to respond to short and mid- to long-term financing requests quickly, this new bank for SMEs has established a paperless process requiring only the most essential guarantees,” the release states. “The aim is to be able to give a ‘yes’ or a ‘no’ as soon as possible to those seeking financing.”
“While micro-entrepreneurs and the self-employed benefit from a wide array of modern, low-cost account offerings jam-packed with features, SMEs rarely enjoy the same quality of banking services. The banking relationship gets bogged down in red tape, and the importance of investing in digital transformation is often underrated by lenders. This is why we decided to build our offer around the needs of today’s businesspeople with a focus on speed, simplicity and knowledgeable support,” Guyot added.
The bank said its target market is small and medium-sized businesses based in greater Paris or Lyon with turnover between $2.3 million and $59 million. Future plans include expanding in France and then across Europe.
The bank announced in June that it planned to go public following a $22.5 million funding round.
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