Finance app Finanzguru announces account card

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So far, only a few fintech founders have had an appearance on television. The twins Alexander and Benjamin Michel will be seen for the second time on Tuesday evening in the Vox start-up show “The Lion’s Den”. As they told the Handelsblatt in advance, they will report there on the successes of their financial app Finanzguru – more than half a million customers – and present a new product: From autumn, users can apply for a virtual account card with which they can open access different accounts and make contactless payments via smartphone. The financial start-up wants to increase its relevance in the daily financial transactions of its customers and at the same time creates an additional source of income.

The Michel brothers already had a lot of prominent support in setting up their company Dwins – the company behind the app. In October 2016, they won the Deutsche Hack software competition “Hackathon” from Deutsche Bank with their idea for a digital financial assistant. A year later, the largest German banking house contributed a little less than one million euros to Dwins. In autumn 2018, Carsten Maschmeyer, one of the “Lion’s Den” judges, also got involved with one million euros. Last year additional investors and four million euros were added.

The “Finanzguru Card” is reminiscent of the offer of the British Fintech Curve. However, users can pay using a central card with various credit cards. With Finanzguru, users will be able to determine in the app which bank account they want to debit when using the card – in the shop or online. A physical card made of plastic should not exist, it will be stored digitally in the smartphone, says Benjamin Michel. It is obvious that the payment functions Google Pay and Apple Pay are used. The founders did not want to comment on this yet.

Cooperation partners for issuing the cards and processing the payments are the Solarisbank and Visa. As a special feature, users should be able to automatically round up the amounts when shopping. You can then either transfer the difference to a savings account or donate to a charity. So far, Finanzguru has had two price levels – a free basic version and a plus version that costs 2.99 euros per month. The card should cost 3.99 euros per month. In addition, financial guru will receive a portion of the card fees that merchants will have to cede when making card payments.

So far, users can store different accounts in the app, get an overview of their expenses and income, can manage contracts and conclude new gas and electricity tariffs. Fintech receives commissions for the mediation of contracts. Will they eventually offer an account themselves? “We do not rule out anything in principle, but at the moment we are focusing on open banking, i.e. central access to existing accounts,” says Alexander Michel. So far, other financial management apps have not yet offered a payment function, but some bank apps do.

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