NewB executives have always described their company as a banking start-up. Maybe it was a mistake from the start.
The initial model assumes quickly demonstrate to investors that your product or service attracts consumers. For digital startups, we are quickly talking about hundreds of thousands of customers, with an increase that must be exponential. In start-up parlance, this is called traction..
Until here, NewB showed no ability to pull. Launched after the financial crisis, the company matured until it obtained a banking license. But she no has not yet passed the 20,000 customer mark. It is insufficient. The bank itself estimates it must attract another 100,000 to hope to be profitable.
However, NewB has many supporters. Their online mobilization campaigns are a great success. His last appeal received over 37,000 signatures in a short time. Thanks to the success of its first fundraiser, NewB now has 117,000 private cooperators. These individuals put money into the NewB cooperative because they believe in this project. The bank has a very good image… or rather, very good marketing, to maintain the start-up spirit. She is also able to launch and succeed in large-scale crowdfunding operations. Its first operation allowed the start-up to raise several tens of millions of euros.
The problem is not with the project itself, which finds strong support. What hangs is execution.
The problem, therefore, is not with the project itself, which finds strong support. What hangs is execution. NewB leaders didn’t “deliver” as they say in start-ups. They didn’t realize their ambitions to create a bank that was truly different from others. What does NewB offer its customers today? A current account, a 0% savings account and some auxiliary products such as insurance and investment funds. Green credit activity is still embryonic. Not enough to attract the big crowd. The most worrying thing is that even the cooperators – the supporters of the first hour – are not interested in this proposal. Only 15% of them became customers. Still this traction problem.
Surprisingly, it does not position itself as a digital bank or a neobank that would offer sustainable and ethical products.
We end up with a paradox. NewB presents itself as a banking start-up, but not as a digital company. NewB has no accountants, no branch network, no real physical existence. All your products and services are offered online. But, surprisingly, it does not position itself as a digital bank or a neobank that would offer sustainable and ethical products. Nonetheless, maybe this is also what consumers expect from an innovative banking startup.
Join the Yaka dynamic!
is an invitation launched by L’Echo to the entire francophone business community to stimulate the entrepreneurial spirit in Wallonia and Brussels.
Yaka! is an initiative by L’Echo to boost the entrepreneurial spirit in Wallonia and Brussels.
A new generation of entrepreneurs is brimming with energy and ambition. They want to become champions in their field. The Echo created Yaka! to allow them to connect, learn from each other and thus fulfill their ambitions.
The launch of this multi-year program is taking place this fall, primarily at an event that brings together more than 100 leaders from fast-growing companies.
But, Yaka! does not stop at these types of companies. On the contrary, L’Echo invites the entire francophone business community to dare to think big. This will be done through a wide range of Yaka! content and events: growth instructions, inspirational and helpful business information and initiatives, podcasts, newsletters, peer learning sessions, etc.
With Yaka!, L’Echo wants to boost entrepreneurial ambition in Wallonia and Brussels. The ingredients are there: well-made heads, creativity, means, entrepreneurs full of projects and ambitions. At some point, you have to go. Yaka!