The co-founders of Ukrainian digital-only bank Monobank are aiming to launch a new credit card offering in the UK in Q1 2019.
The card will target those who need to build a credit history, including young people applying for their first credit card and people who have just arrived in the country.
The idea behind the card is to create an entry point – for people who have little credit history – by providing a fixed-price solution whereby customers can build up credit before moving to a bank with a cheaper offering.
The card itself will be free, with a 34-40% APR.
However, it will allow users to pay for any purchases in instalments, with a fixed fee applied for using this product.
In an exclusive interview with Specialist Banking, two of Monobank’s co-founders Misha Rogalskiy (pictured above, right) and Dima Dubilet (left) revealed that they were currently applying for an e-money licence – through the FCA – in addition to a consumer credit licence.
They are planning to apply for a banking licence in the UK in the future.
“Our core product in Ukraine is a credit card and it’s something that we want to replicate here in the market,” said Misha.
“We see that there is a gap in this new way of banking.
“Challenger banks are usually focused on debit products, and we think that there’s a market for a great product which is also done … in a mobile app and is accessible…
“We could target our product to a single credit profile which usually gets declined from retail banks because credit bureaus just don’t know about these clients.
“For instance, if it’s someone who’s just arrived in the country or it’s a young person who is applying for their first credit, it’s hard to get a credit product from a big bank, so that’s where we come in.”
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