There’s a new modern bank about to be launched in the UK.
Dubbed a “neobank” Loot is the kind of innovative new banking service that will potentially challenge the big incumbents. It will take time, but their aim is to provide a service that is SO much better, targetted squarely at millennials.
People can now sign up for one of the first 25,000 Loot accounts that will open later this summer at www.Loot.io.
A bank for the smart-phone age
Loot’s aim is to help you get the most out of life – without getting into debt or worrying about money – all from the palm of your hand. The new Loot will be opened to customers in tranches of 25,000 people at a time, so those keen to be first should register as soon as they can.
Loot’s philosophy is “life is too short to miss out”. So – using market-leading technology – it has created a banking experience that shows customers what they can do, when they can do it and how much it will cost them, all without going into debt. Loot gives customers unprecedented clarity and control over their money and spending, helping them to make the most out of life without worrying about money. It can even show you, anonymously, how your spending compares to your peers.
How It Works
Loot works by using a prepaid, contactless MasterCard debit card connected to the app. Each customer has their own Loot account number and sort code, and the underlying banking and money transmission licenses and service are provided by major UK issuer Wirecard Card Solutions Limited.
Loot has no interest in its customers going into debt and so deliberately does not offer any overdraft or borrowing facility. The Loot philosophy is all about helping customers to make optimum use of the money they have, by having unprecedented visibility and control over their spending.
Money can be paid into the Loot account electronically by money transfer, free of charge. Using the Loot debit card, money can be spent anywhere accepting MasterCard card payments, including online, and cash can be withdrawn from any ATM.
The magic of categorisation
The powerful thing about Loot is the app/bank automatically categorises all of your spending, as it happens, and showing you how much you still have available to spend to stay on budget.
Being about to compare your spending to your peers (anonymously of course) is also a fun feature that will make you more aware of your spending choices.
When you arrive in a new country Loot can show you your balance in the local currency so you know how much money you have to spend. As you make a purchase, Loot uses a competitive exchange rate, allowing you to spend money abroad. Loot will provide you with spending summaries upon arrival and departure, ensuring you never lose track of your spending – whatever the currency.
Being tied to an app also offers other benefits. If you lose your card you can simply block and unblock in the app on your smartphone.
What’s the catch?
All services are provided free of charge other than foreign exchange from which Loot will earn a fee from the exchange rate, although this rate will be very competitive. In time, Loot will also earn revenue from partner retailers etc when Loot customers take up special deals and discounts offered to them.
Smartphone users can sign up NOW for the new Loot version 2.0 by registering at www.Loot.io or later this week download the new app from the App Store.
Are you tempted to try a new bank designed for the 21st century?