Belgian digital bank Aion launches

Belgian digital bank Aion launches

A subscription-only digital bank promising to use AI to help customers maximise their money, has launched in Belgium.

Called Aion, the new venture is the latest iteration of Banca Monte Paschi Belgio, which private equity giant Warburg Pincus bought from Italy's Banca Monte dei Paschi last year.

Aion runs a simple subscription model, ditching the various fees charged by other banks in favour a EUR19 monthly payment for "regular membership".

Wojciech Sobieraj, CEO, Aion, says: “Aion is on a mission to change the way banking is done. Instead of trying to upsell and maximise profits per customer, Aion charges a flat subscription fee so that we do all the hard work for you, our members.”

In addition to the usual banking services, Aion has developed an AI-based tool, called MoneyMax, designed to help members proactively take care of their day-to-day spending by finding the best deals for household expenses and the highest rates on their savings.

The bank is also offering an Exchange-Traded Fund asset management product and a chat-based personal concierge service to all its regular members.

Daniel Zilberman, head, Europe, Warburg Pincus, says: "We have committed significant financial resources to Aion, well in excess of what has been raised previously by any challenger bank at launch.

"Ultimately, the success of any financial services technology company is measured by the quality of its product, technology and management — and in this regard, we believe we are backing the very best."

Comments: (1)

Boaz Barack
Boaz Barack - Bonart Financial Performance Ltd - Wollerau 01 March, 2020, 22:001 like 1 like

Game changers in the Asset Management will redefine the industry

The digital revolution in the financial service sector created new types of Asset Managers where this function operates much better than where it belonged to in the past. The technology revolution in this sector meant chaos for some banks, but it created opportunities and room for marketing creativity that want to seize it.

The term asset management, broadly defined, refers to any system that monitors and maintains things of value to an entity or group. It may apply to both tangible assets (such as buildings) and intangible assets such as human capital, intellectual property, goodwill and financial assets). Asset management is a systematic process of deploying, operating, maintaining, upgrading, and disposing of assets cost-effectively.

This term was most commonly used in the financial sector to describe people and companies that manage investments on behalf of others. Today the above definition has spread to Digital Asset Management (DAM), which consists of management tasks and in particular, the distribution of financial products. 

Digital disruption has arrived in retail financial services. Banks, insurers, and wealth management firms are besieged by a wave of disruptors that aim to use digital tools to deliver superior customer experiences at a fraction of the cost. Regulation is no longer a barrier to entry.  A new digital bank is a customer-centric financial services company. It enables its customers to manage their existing bank accounts and personal finances and to buy any financial product from every provider at the best possible price

Asset management is the direction of a client's cash and securities by a financial services company. These institutions offer investment services along with a wide range of traditional and alternative product offerings.  The burgeoning fintech industry is entering this space, being both an enabler and a disrupter. Fintech solutions support and enable not only the back-end functions of financial institutions but also their customer interface and experience. Goldman Sachs estimates that fintech firms could capture nearly $660 billion in revenue from traditional financial services players involved in payments, crowdfunding, and wealth-management and lending.