MoneyHOP, a portal that provides cross-border payment and remittance solutions, will be the first neo-bank in the country to allow and allow Indians to open bank accounts in the UK, after obtaining a license from the Financial Conduct Authority (FCA). Six months on, it has become a banking entity in the UK, says Mayank Goel, CEO and founder.
The FCA is the authority that authorizes and regulates the opening of bank accounts in the UK. The launch will help MoneyHOP replace existing foreign currency wallets with multi-currency bank accounts, which will be issued in five minutes, Neobank said. This means that travelers landing in the United States can simply swipe their MoneyHop card and transact there in dollars, pounds in the UK and rupee in India.
“Forex cards, firstly, do not work in India and secondly, they are prepaid devices not connected to your account,” said Goyal. This means you spend in India using your debit or credit card, then take a separate forex card when traveling abroad and you use some platform to send money abroad, if you want to scan, use another platform and pay in India UPI . “
The purpose is to help customers convert MoneyHOP accounts into primary global spending accounts and allow single touchpoint access to facilitate investment in international travel costs, education funds abroad, shopping assistance, remittances, foreign equity and all international banking. Needed through an app and a card – such as relationship banking, says Goyal.
MoneyHOP added that it would not charge its users any account opening fees in the early days, at least. The documents required to begin with will vary, and the discussion is still working, but an applicant will have a list of the minimum documents required, with the necessary due diligence, and additional work if the applicant’s “risk score” is high.
A team of at least six people is already working at MoneyHOP’s London office, registered there.
There are multiple neobanks in India offering a set of different products like savings, loans, investments, insurance and other domestic services, but MoneyHOP says its goal is to solve cross-border banking problems. Currently, the biggest entry barrier is external remittances from India, which are regulated by the Reserve Bank of India and must comply with the Foreign Exchange Management Act (FEMA).
“Regardless of geography, MoneyHOP provides an app and a card that allows you to be 100% digital, economical, transparent and seamless in any currency at any time. Getting an FCA license in the UK is a first step for many as we plan to expand our reach to various emerging markets, ”said Goyal.
MoneyHOP raised $ 1.25 million from prominent global investment bankers in its seed round in August 2021. Additional funding is not currently being discussed.