Koto is set to launch in the UK in January next year offering fixed-fee lending via an app.
The business shares co-founders with Ukraine’s popular neo-bank, monobank, and aims to replicate the latter’s success.
monobank gained more than 1.6 million customers in just over a year after its launch and is continuing to gain more than 100,000 customers every month, according to Rob Escott, chief executive officer at Koto (pictured above), in an exclusive interview with Specialist Banking.
“We want to replicate the sort of disruption that monobank has created in Ukraine,” said Rob.
“monobank launched last year and it took them just nine months to launch … and since [launching, it has] now got 1.6 million customers in a bit more than a year.”
Misha Rogalskiy co-founded monobank — a joint venture with Ukraine-based Universal Bank — and is also co-founder of Koto.
Rob stated that Koto wants to launch with something that “generally helps customers to manage their everyday lives”.
He explained that customers will be able to apply for credit exclusively through the app, and therefore will not need to apply online or use paper forms.
“You'll get your card straightaway … with a Mastercard number [as well as] a sort code and account number.
“You don’t have to wait for anything in the post, [which] is quite different [compared with] most providers.”
Koto is made up of three products: an e-money account plus two credit elements which have fixed fees of just 25p or £10.
“The first [credit product] — called extra — is up to £400 and works a bit like an overdraft, but unlike an overdraft there's no interest on it — it's a fixed fee for usage.
“…It's very transparent, very fair and everyone can understand what it is.
Rob added that there won’t be any foreign transaction fees or fees for withdrawing cash from an ATM.
The other credit product — called a ‘spread facility’ — is up to £1,000 and is generally for larger transactions, with a fixed cost of £10 a month.
“The technology stack is rock solid because we're sat on something that's proven for 1.6 million customers,” Rob concluded.
Temenos partners with ClearBank for cloud payments
Banking software company Temenos has formed a strategic relationship with ClearBank to provide banks with a faster route to market for real-time cloud payments...
Unity Trust Bank registers 34% rise in profits
Unity Trust Bank increased profits by 34% in 2019...
Believe the hype – why explainable AI is a trend that’s here to stay
Technology has become a ubiquitous part of our day-to-day lives...
Piloting tech updates: ‘The bigger the bank, the harder it is to get anything done’
In the latest Medianett filmed roundtable session, we discussed how important technology is in the banking space, and what impact the industry expects it to have on its businesses in the future...
What banks need to know about cloud security
One of the most common perceived concerns when adopting the cloud is the issue of security...
OakNorth sees 95% increase in pre-tax profits
OakNorth Bank has announced a 95% rise in pre-tax profits in 2019 to £65.9m, up from the £33.9m recorded in 2018...
Redwood Bank signs up to Women in Finance Charter
Redwood Bank has announced that it has signed up to the Women in Finance (WIF) Charter...
Masthaven launches digital Women in Leadership programme
Masthaven Bank has launched a new Women in Leadership digital development programme for female senior leaders...
Protecting against supply chain disruption and the domino effect
Disappointingly, many UK SME business owners don’t understand their supply chains...
Confused about which Isa to choose? Hopefully this mini-guide will help…
We are now firmly in Isa season, so you’re likely to read multiple articles about the most competitive Isa products in the market and how best to make the most of your Isa allowance before the end of the tax year...
Garden shed entrepreneurs contribute £16.6bn to the UK economy
Entrepreneurs who run their businesses from garden sheds contribute £16.6bn annually to the UK economy, according to a recent study...