Starting A Digital Bank

Digital Bank
MY is offering 5 inaugural digital banking licenses, closing date for application is next Wed (Jun 30th, 2021). [Application: framework, faq, procedure (appendix 1)]. A new digital bank should ideally have a clear USP (unique selling point). For example, it could be e-commerce focused with the following consumer friendly features:
  • Offers debit and credit cards (and digital currencies when available)
  • Does not expose card numbers, online or offline
  • User definable geo-fencing (payable in countries A, B and C only)
  • Transaction limits easily set & cards easily enabled and disabled
  • Instant app, SMS, email notification of transaction (user definable)
  • Double account: one for safe keeping, one for transaction
  • User adjustable security: low, medium, high (high: OTP, many rules eg no more than 1 transaction per day, 2 per week, 5 per month).
  • Independent or semi-independent adjudicator or ombudsman for disputes, account closings

Another sector with present needs which new digital banks can meet is small business banking. Some latest startups in this arena (the last 2 banks in the list are consumer banks) [1 2]
  • Brex - Financial software that comes with a bank
  • Novo - Cheque (checking) account in 10 minutes
  • Mercury - Startup bank (API, virtual cards, teams)
  • Lili - Banking for freelancers (expense management, reports)
  • Rho - Boost your credit limit by 300%
  • Hiver - Bonus if you make fewer withdrawals
  • Holvi - Comes with business account, invoicing, bookkeeping
  • Bunq - Lifestyle bank (yoga, coding, cuisine etc)
  • Lunar - Denmark's top banking app