Plum partnered with Eurobank

Monday 4 December 2023 11:44 CET | News

UK-based smart money app Plum has entered a strategic partnership with Eurobank to provide customers with a fully digital wallet focused on savings and investments. 

The collaboration intends to support Plum in accelerating its development in Greece and surrounding markets, with its objective being to reach 700 thousands active customers in the country by the end of 2027. Furthermore, the move underlines the capabilities required by large banks to access a younger, more demanding, and diverse demographic.

UK-based smart money app Plum has entered a strategic partnership with Eurobank to provide customers with a fully digital wallet focused on savings and investments.

Plum – Eurobank partnership objective

In addition to the expansion opportunities for Plum, Eurobank also provided a minority equity investment of EUR 10 million, with the first tranche of EUR 5 million being received in November 2023. Plum plans to conclude a second close of EUR 15 million in the first quarter of 2024, with other institutional investors alongside Eurobank’s EUR 5 million second tranche. According to Plum’s officials, the collaboration with Eurobank and the investment will further support the company’s growth in the EU. The strategic partnership intends to secure a large market share in Greece and Europe more generally.

Furthermore, Plum plans to sustain its expansion, with the company having seen its revenue double in the past year, as per the information detailed in the press release. The collaboration and fundraising intend to bring Plum to profitability by the beginning of 2025. The company aims to introduce a range of new product types in 2024, including Cash ISA and Lifetime ISA in the UK, to add to its existing offering of tax wrappers and ETFs in Europe. Plum already launched its services in ten European markets, and the Eurobank deal aims to solidify its position as a provider of investment, savings, and budgeting solutions to consumers. Representatives also stated that many individuals continue to struggle with cost-of-living difficulties and require help in building their financial resilience. The Plum app was developed to address this through automation and AI, with the company planning to further expand its services.

Plum’s recent developments and collaborations

With its features, Plum intends to improve wealth-building, with the company automating parts of personal finance that individuals may find difficult or time-consuming, supporting them in saving, investing, budgeting, and managing their spending. Currently, the company has 1.7 million customers across the UK and EU. To advance its development strategy, Plum entered several collaborations and launched new capabilities in recent months.

At the end of September 2023, Plum introduced Plum Interest, a product intended to allow customers to benefit more directly from higher central bank rates and increase returns on cash. Customers in the UK, France, Spain, Italy, the Netherlands, and Ireland received the ability to hold their money in government-backed assets that reflect the respective interest rates offered by central banks. Moreover, the product aimed to provide similar benefits to a savings account, without the withdrawal and deposit restrictions associated with high-interest services.

During the same month, Upvest, a Germany-based fintech, announced that it provided Plum with its investment API, allowing the latter to expand its range of investment capabilities to EU customers. By joining forces, Plum can provide direct and fractional investments in EUR-dominated ETFs and stocks to its users across all nine EU markets, including France, Ireland, the Netherlands, Belgium, Italy, Spain, Portugal, Cyprus, and Greece. The company aimed to improve the investment experience for its EU user base.

Earlier in 2023, Plum announced the launch of Watchlists and Price Alerts, two additional smart features that support stock investors’ decision-making process. With the new features, the company aimed to enhance customers’ understanding of their portfolios and to offer them timely information for making decisions regarding their investments.

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Keywords: partnership, investment, banks, expansion, financial services
Categories: Payments & Commerce
Companies: Eurobank, Plum
Countries: Europe
This article is part of category

Payments & Commerce




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