Hypothekarbank Lenzburg in Fintech Deal
Hypothekarbank Lenzburg, a Swiss regional bank that supports the introduction of new banking solutions, has agreed with two fintechs to launch their product on its open platform – taking another core banking service to mobile phones.
Neon, a digital bank, and cash-application Sonect are merging their services. They agreed to use Finstar, the open banking system of Hypothekarbank Lenzburg, to launch their joint product, the regional bank said in a statement on Wednesday.
The solution allows Neon customers to draw cash at some 1,000 shops across Switzerland using the Sonect application. Users won’t have to go to an ATM anymore, thus taking yet another banking service to a mobile device-based system.
The agreement shows once again that Hypothekarbank Lenzburg is finding new customers courtesy of its open banking platform. At the same time, it gives a boost to the fledgling use of fintech solutions in a conservative financial market such as Switzerland. Fintechs have been able to attach their solutions to Finstar starting in 2017.