• Since going live November last year, 15,000 people have signed up for a Loot Account
• Half of the £1m has been transacted in just the last month, as sign-ups and usage escalates
London, 11th April 2017 – Since its launch last November, Loot has seen one of the fastest rates of growth of any of the new digital challengers to the UK’s big banks, with more than £1m transacted in just 4 months. More than 15,000 people have signed up over that time, and half of the £1m was transacted just last month, reflecting rapidly escalating growth already. This impressive start creates a clear ‘Big 4’ amongst the new online-only challengers, with Loot sitting alongside Monzo, Starling and Revolut as the four obvious leaders.
Ollie Purdue, founder and CEO of Loot said, “This is a very exciting start, faster even than we hoped and the pace of growth is already accelerating. We are also thrilled with the fact 50% of the people signing up have done so because a friend or relative with a Loot account has recommended they do. That tells us we are getting things right even at this very early stage, and it is also making our marketing efforts super cost-efficient.
“Most important though is this fast take-up shows us our users love the new Loot experience already, even before some of the most exciting new features arrive shortly.”
This achievement positions Loot firmly alongside Monzo, Starling and Revolut as the leading four of the digital-only challengers to the UK’s big banks.
Given the distinct differences in the strategies each of these front runners, this sets up an intriguing race to watch. While Monzo and Starling have opted to obtain their own banking licenses right from the outset, Loot has chosen to take the e-money route that is both cheaper and faster, and that provides greater security for customers’ money as it is ring-fenced and totally unaffected by Loot’s balance sheet and success or otherwise as a business.
The distinctly different approaches have created a notable and important contrast in the amount of money and time required to get to launch, and then get established as a one of the four front runners in terms of traction with real customers. Loot has moved faster and ‘lighter’ than its rivals, achieving its current position with a backing of just £4m. Profitability is far closer on the horizon and the Loot model also makes future expansion easier and more efficient, including potential launch overseas. A further investment round is currently underway to help fund Loot’s increasingly ambitious growth plans.
Loot is designed to help its users make the most of their lives, by giving them unprecedented visibility and control over their money and spending. It is a unique smartphone and Web-based banking experience that makes it quicker, simpler and easier than ever before for people to stay on top of their spending and make the most of their money without going into debt.
Loot is fully open and available to all by downloading the app from the iOS App Store, Android app stores or by signing up for Web access at www.app.loot.io. Users need to be 18 or over.
Notes for Editors
Loot is not a bank, it’s better – a smartphone and Web-based banking experience that helps users know more about their spending, so they can do more with their money.
Loot believes that students and young people should be able to go out and do the things they love without worrying about going into debt or relying on an overdraft. Whether they’re saving for a night out, an around the world trip or even saving for a mortgage on a house, Loot helps users to get there.
To date, Loot has raised more than £4 million to build the product, service and team, and to begin marketing the new version of its service. Notable investors to date include SpeedInvest (investors in Holvi, Curve) and Global Founders Capital (investors in iwoca, Kreditech, Facebook).
The legal part; the users money will be held by Wirecard Card Solutions Ltd. (WCDS) who are authorised by the Financial Conduct Authority (FCA) to conduct electronic money service activities under the Electronic Money Regulations 2011 (Ref: 900051). The card itself is an e-money product and although it is a product regulated by the Financial Conduct Authority, it is not covered by the Financial Services Compensation Scheme.
Mastercard is a registered trademark of Mastercard International Incorporated. The Card is issued by Wirecard Card Solutions Ltd (“WDCS”) pursuant to license by Mastercard International Inc.
Wirecard Card Solutions Limited is authorised by the Financial Conduct Authority to conduct electronic money service activities under the Electronic Money Regulations 2011 (Ref: 900051).
Loot Financial Services Limited is based in London, with its headquarters at Unit 419, 164/180 Union Street, SE10LH.