The banking industry is being reinvented. Its complex cost and profit structure give huge opportunities to new competitors: neobanks.

New and disruptive business models are challenging traditional banking products and services through 100% digital and technological structures, offering customers a range of potentially attractive annual returns and easy-to-get investment options. This is how Iban provides easy access to investment on a global scale.

According to the European Central Bank’s report on Bank interest rates - Deposits, banks are offering interest rates of less than 1% on average for deposits with agreed maturity less than or equal to one year. Aside from low interest rates, banks often require a high level of investment from customers. Iban’s initiative aims to achieve fixed returns from 2.5% up to 6% with a simple portfolio that can be started with a minimal investment.

What people are looking for

Among other things, what gives fintech companies a clear competitive advantage is the cost-efficient structures they build. People are eager to get higher and protected rates, and neobanks are offering that with much less intermediation than traditional financial systems. With Iban, you can register and open an account in less than 5 minutes. On top of that, there are several simple and interesting options to choose from, with a variety of terms and amounts - all aiming to offer fixed returns.

Referring to the European Central Bank’s statistics as of May 2019, here is a brief summary comparing Iban’s interest rates with the average interest rates offered by banks in some eurozone countries. The table shows interest rates for investments with no minimum term and for investments with a term of one year or more.

Source: https://www.euro-area-statistics.org

With these numbers in mind, neobanks are aiming to bring new investments products and Iban is no exception. The platform brings new and competitive rates by offering projected fixed returns.