UK savings app Numeos gets FCA seal of approval
London-based savings app Numeos is making progress as it has now got regulated by the UK’s Financial Conduct Authority (FCA).
The firm was founded last year and is tapping into the open-banking craze. It is building a distribution platform for retail financial products for consumers, “smaller banks” and financial players.
Numeos founder and CEO Farid Sedjelmaci told FinTech Futures : “I was personally frustrated with my cash savings: same old products that our parents used, low interest rates tired of the hassle of managing given the low interest rates. This was especially acute when I decided in 2015/16 that I wanted out of the stock market and ended up with too much cash on my hands.”
He says the start-up has seed money “but is going for a larger round now”. No specifics on the amounts.
In terms of planned features and options, Sedjelmaci says it wants to offer access to funds on fixed-rate bonds, offer “complementary” investment products that are “very suitable for short-term / low-risk”, and automate the management of cash savings.
As it has just got approval, these are early days. He adds that it is aiming to get its first 100 customers by the end of the month.
Its first step is to offer a savings account in the UK. This launch product, a one-year fixed-term bond, can earn users up to 2.45% annual equivalent rate (AER) due to its relationship with partner banks. The latter group includes UK challenger OakNorth and commercial and retail bank Secure Trust.
Numeos explains that after signing-up, users can open the savings account of their choice with a suggested partner bank.
All funds are 100% guaranteed by the Financial Services Compensation Scheme (FSCS) as all its partners are UK-based banks and Numeos says it never exceeds the limit of £85,000 per bank. It looks for the best rates out there using comparison websites.
The start-up also offers a way for customers to boost their interests rate with NumeosMart.
If users look at products chosen by the firm and engage with the fintech partners – such as subscribing to their products, then “the higher your interest rate top-up”. It has 30 offerings and is clearly keen to get people looking at them. Some of these fintech partners include Azimo, Trussle and Funding Circle.
Along with Sedjelmaci, the firm was also founded by Olivier Bessi (head of product).
Sedjelmaci previously worked at McKinsey, while Bessi has worked at SunGard (now FIS) and BNP Paribas.