= Subscriber content; or subscribe now to access all American Banker content.

Movenbank Raises $2.4M in Seed Funding

The much-talked-about mobile financial services start-up Movenbank has finished its initial round of fundraising.

The $2.4 million seed investment round was funded by the company's founders, along with Anthemis Group in London; Raptor Ventures in Boston; Kevin Plank, the founder and chief executive of Under Armour; and a syndicate of Singaporean investors.

"Our investors believe, as we do, that mobile banking and payments have the opportunity to fundamentally change the everyday retail banking model," Brett King, Movenbank's chief executive and one of Bank Technology News' 11 Innovators of the Year for 2012, says in a press release.

Movenbank will use the money to make hires and to develop CRED, a "credibility score" that combines traditional credit data with social media information to determine a customer's creditworthiness and "financial wellness."

Movenbank has also unveiled a promotional video parodying the traditional bank as a man-eating alien. The company has yet to launch its mobile bank. King, a fixture on the conference circuit, attacks the business model of traditional retail banks in his 2010 book "Bank 2.0."


(1) Comment



Comments (1)
I'd love to start a "branch" (what would you call it) here. I have already opened, from scratch an FSB and concur that the existing model is still useful but dated. Also, part of the reason that competition has waned is the high cost of Bank Ops.

In '85 or '86 I wrote a paper about how the next inflationary spike would eliminate checks. Remember that we were at 15% rates. They were too expensive to process and were being handled as fast as the paper would allow without shredding, but the infrastructure was not in place yet to move to POS/EFT. I was wrong; well partially. We never had that spike thank goodness but instead we have had the opposite. The result is the same - too costly but now so are the brick & mortar and many of the kinds of jobs that are still being done.

The CRED is really interesting but dangerous. FICOs one, and only one, saving point is that its blind (more or less). As a lender I would look at credit reports, check employment history and do all of the proper underwriting. Social media is just another way to gather information that MIGHT influence a credit decision. The trick will be to have an objective standard.

If Movenbank wants a branch manager, in-house counsel, lender, chauffeur, and all-around great guy, just call or better, catch me on social media.

Richard Isacoff
Posted by riisacoff | Thursday, August 09 2012 at 7:46PM ET
Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.