@j800rob spotted them back in July.
Bold comments from their founder/CEO:
Purdue believes Loot has an advantage. The startup has chosen not to apply for a banking licence, instead using an E-Money licence and partnering with other companies to offer banking services.
Purdue says: “Financially it doesn’t make sense. We’re so much faster, so much cheaper to run. From a compliance perspective it’s no different. We’re working on products you would expect a bank to do because we can use other partners to do that.
“Out of the challenger bank world, we’ve got the most functionality. We’ve got our own sort code and account number system so any user can make a payment to anyone in the banking network. We use Faster Payments. We’ve got direct debits. We’ve got savings accounts as well built in. We call it Loot Goals, you add a savings goal and then we’ll tell you how much money you need to put in each day to reach that goal.”
Loot raised the £2.5 million from existing investors SpeedInvest and Global Founders Capital. Both are European (Austria and Germany, respectively) – did Brexit affect fundraising?
The EU vote “actually made it a stronger case not to go for the licence,” Purdue says. “Even when we hit scale next year, we still won’t because it financially won’t make sense. Monzo and Tandem have spent millions on getting this licence that doesn’t give them any extra functionality than we’ve got and probably can’t go through Europe. It’s pretty crazy.