UK fintech bank for SMEs launches
(1 February 2017 – United Kingdom) Following a US$2 million funding round in 2016, UK banking startup Tide, has launched its full service, aimed at small businesses.
Tide is aiming to help UK’s small businesses overcome the problem of opening a business account with high street banks, which may take weeks, with an offering that takes minutes. The startup says it is able to do this by by scanning a passport or driver’s licence via a laptop or smartphone.
The fintech said it also has an automated bookkeeping service, minimising potential accountants’ fees and the ability to upload any supplier invoice and prepare a payment. Business owners can also create and send fully customisable invoices. There are no monthly fees, just 20 pence per bank payment and £1 per cash withdrawal charge.
George Bevis, Tide founder and CEO says “business services offered by high street banks have failed to meet the needs of the modern small business owner. With slow sign-up processes, hidden charges and poor customer experience, business banking has been stuck in the dark ages.”
The firm is not classified as a bank however. Member deposits are kept in a ring-fenced account at Barclays under an FCA-regulated e-money license by PrePay Solutions (PPS) (a large B2B deposit manager co-owned by Edenred – a multi-billion dollar B2B financial services provider – and MasterCard).
Funds are held under an e-money license, not a banking license. The difference being that banks can take investment risks with the money held in their accounts, however e-money license-holders are not permitted to do this. Tide deposits are held by PPS in a ring-fenced account at Barclays and cannot be invested by PPS.
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