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Neo gets green light for corporate multi-currency account

Neo, which describes itself as an “open network for the smart economy” and uses blockchain technology and digital identity, has secured authorisation to offer a multicurrency account for corporates.

It will now create a Payment Services Directive (PSD2) institution, which will be supervised by the Bank of  Spain and says that the Neo multi-currency account will be available from early 2020 in Spain, France, the UK and Poland.

Neo will allow the account holder to receive, store and pay in around 30 currencies. The Neo account will include an international bank account number (IBAN) in the client’s name and will be fully programmable in order to offer extended automation capabilities to clients. It will rely on a proprietary core banking system (CBS) developed by Neo Fintech Lab in the UK.

The payment services will run alongside the FX hedging services already offered by Neo Capital Markets, the group’s investment services entity. Clients will now be able to hedge more than 90 currencies and receive / make payments in over 30 currencies from a single place.

Replacing banking platforms

Neo states that it is the first European fintech that offers in a single platform both investment services (ruled by the Markets in Financial Instruments Directive (MiFID2) and payment services (ruled by PSD2).

This converts, which pledges to design and build “bespoke cash management and FX risk hedging solutions” for companies of any size into “a unique gateway to a large range of services”.

They include virtual multi-currency accounts for international payments and collections, FX hedging solutions and treasury investment. “The platform will allow clients to reduce costs, but more importantly it will allow clients to digitalise their treasury department and automate tasks,” says Neo.

Neo will also include features inspired from treasury management systems (TMSs) which are normally reserved for large multinationals due to the high cost.

Activities will be supported by the Neo proprietary CBS, which will ensure connectivity to clearing systems and the holding of a transactions ledger. “Having its own CBS is the guarantee that our clients remain in control of their data all along the chain. Neo CBS is developed in the UK by Neo Fintech Lab,” adds Neo/

“Our vision back in 2017 was to create a platform that can replace the old-fashioned banking platform,” says Laurent Descout, Neo chief executive and founder. “Operating with Neo does not require any complex installation. It is 100% on demand with the client being in complete control.

“The platform ensures clients can reduce costs and increase efficiency by reducing manual tasks and improving processes. Our 100% application programming interface (API) approach also offers clients great automation possibilities.”

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