Wednesday, 22 May 2024
BusinessAbanca launches a digital bank that will pay for savings based on...

Abanca launches a digital bank that will pay for savings based on the client’s physical activity

Abanca has landed this Thursday in the disputed digital banking market in Spain. The group, heir to the old Galician savings banks, has launched B100, its commitment to mobile finance that will have three accounts and a debit card. As a novelty, the group has created one of those savings accounts in which money can only be deposited based on the client’s physical activity. In exchange, it will have a remuneration of 3.4%, above most savings accounts on the market.

The group has created a new division in which it has been working for months and in which it has an investment of more than 25 million euros for the next two years. The bank thus aims to attract “digitalized” clients who are concerned about their health and sustainability, as explained by its general director, Jorge Mahía, responsible for the launch presented this Thursday.

The entity has set objectives that in two years, at the end of 2026, the new bank will have 500,000 clients and be profitable. The arrival of B100 comes to a disputed market in which the large banks already have their bets (ING, Openbank, BBVA…), to which neobanks such as N26 or Revolut are joining. Although it will be a new entity, it will have all the regulatory and normative support of Abanca, as it will be covered by the license of the Galician group.

N100 is born with three accounts, to which other financial products will be added. The first is the usual payment method, where you can direct your payroll, pay bills and which will be linked to a debit card. The second, a savings account in the style of other entities with a remuneration for the money that is in it, although with access to it at any time. This will have a remuneration of 2.7%. The third, the novelty compared to other banks, is one in which savings can only be made based on the client’s physical activity.

Daily Step Goals

The bank’s app will be linked to Apple and Android physical activity platforms. As explained by the entity, it will have daily step objectives that the client will set and the function of which will be sending money from the usual account to this savings account. Each day that the goal is met, it will be entered into the account. In exchange, 3.4% will be paid, at levels that banks do not usually pay for customer savings.

Mahía has explained that this launch is not intended to compete in what is known as the battle for savings. This is the name given to the attempt to attract customer savings, deposits, in exchange for remuneration. The rate hike predicted greater competition in this business, but large banks have not entered it directly, although they have through digital alternatives. The manager explained that the interest that is now paid on its launch may vary in the future, “depending on the Euribor curve.”

Abanca has explained that this new bank also has a sustainability aspect. Mahía explained that greater customer concern for the environment and health has been detected. For this reason, the bank has pointed out that the use of the card will generate investment in a company dedicated to cleaning plastic in oceans. Specifically, 25% of the intermediation commission charged by banks for each operation with their cards will be allocated to this.

Mahía concluded the presentation by explaining that the product that is now being launched is “the minimum” to which new financial products will later be added. In addition, other measurements of physical activity will also be incorporated to account for other sports such as swimming. The corporate objective of the entity is to access the national market that it does not reach with its bank, with greater roots in the north of Spain. “Our quota is 3% and we want to look into that remaining 97%,” the manager pointed out.

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