SoftBank-backed German challenger bank Vivid Money is switching its focus to business banking with a report in German media saying it is winding down its retail banking business altogether.
The Berlin-based challenger bank, valued at €750 million at its peak, was originally built as a retail challenger bank, looking to take on the likes of German rival N26 and Revolut in the retail banking space.
With its one-stop “super-app” offering, Vivid Money has raised around $205m in total including a $114m funding round in 2022, with backing from Greenoaks Capital, Ribbit Capital and SoftBank Vision Fund 2, valuing it at $885m (€750 million).
Vivid Money put out a press release earlier this week, saying it was extending its business banking offering, which has 30,000 SME customers, beyond German to France, Spain, Luxembourg and the Netherlands.
It has also made several new executive recruits. Vivid Money first got into business banking at the start of 2024.
Vivid Money is thought to have over 500,000 retail customers but the focus moving forward will be supporting its SME offering wth new products and marketing.
The move comes amid a highly competitive retail German banking market, with incumbents and new fintechs battling it out.
The news of Vivid Money’s switch to focus on SME was first reported by Manager Magazine.
Alexander Emeshev, co-founder (pictured), Vivid Money, said: “By combining B2C and B2B banking in one platform, we are creating a seamless financial ecosystem that supports both individuals and businesses.”
Emeshev said that Vivid Money was the “fastest-growing SME financial platform in Germany" and that it had onboarded more new clients than the competition in March.
Vivid Money’s retail customers will continue to have access to all its services but, moving forward, the fintech’s focus will be on developing products and investment for the SME market.
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