Helvetia Venture Fund has made its first fintech investment, joining a $5.5 million round in Swiss challenger neon.
Unlike foreign challenger banks, neon issues accounts with a Swiss Iban, which are also covered by the Swiss deposit protection scheme thanks to a cooperation with Hypothekarbank Lenzburg. Just one year after its launch, more than 30,000 customers are using the firm's banking app.
Helvetia's investment in neon - alongside QoQa, TX Group, Backbone Ventures, the Innovation Foundation of the Schwyz Cantonal Bank and Business Angels - follows a previous co-operation agreement marrying the firm's digital insurance service Smile with neon's banking app to create a mobile bancassurance product.
"Neon has an excellent product with impressive growth figures," says Martin Tschopp, chief customer officer at Helvetia Switzerland. "The cooperation with neon gives Helvetia the opportunity to access new customers. We are also confident that neon will further develop the traditional Swiss banking market in the long term." .
Jörg Sandrock, CEO and co-founder of neon, adds: "Insurance is set to become an important additional service as we expand our business model."