The startup has been on the market for a year, is benefiting from the Credit Suisse effect and has already significantly expanded its range of offerings.
The Neo-Bank started as a vertical exactly a year ago. I read is not the neo-bank for everyone, but at least for almost everyone who is involved in business, small or large: for corporate customers. The FinTech is one of the few companies in Switzerland that has a FinTech license from FINMA.
The startup is the first neo-bank in Switzerland to focus exclusively on the requirements and special features of smaller and larger companies with a digital business account – including startups and freelancers.
The FinTech is financed with a total of 3.7 million francs from two financing rounds, 2021 and 2023, provided by TX Ventures (TX Group), SIX Fintech Ventures (SIX Group) and the High-Tech Gründerfonds.
The neo-bank for complex startups and SMEs
As a unique selling point (USP) under the sail “Compliance without Complications” Relio claims to be the neo-bank for special SMEs and startups with special features. These include companies that do not meet current standards and can therefore sooner or later get caught in the compliance mesh of traditional banks. The “earlier” can be related to complex ownership structures or innovative business models, the “later”, for example, with changing cash flows from new destinations.
Relio is positioning itself in this niche with the promise: things are fundamentally different for us. The Zurich neo-bank has underpinned its business model with an algorithm that largely automates and intelligently processes compliance. An algorithm that, according to the FinTech, should outshine everything that is used by classic and neo-banks.
This should mean that even complex SMEs can access their account much more quickly than with any other classic bank or neo-bank. Something that is a little complex should be able to be done in 24 hours, something that is quite complex can take two days, something that is very complex should not take weeks and months, but just a few days.
Even after the account has been opened, identified “irregularities” or deviations from the norm in everyday business should not lead to account closures – Neo-Bank claims to be able to act quickly and efficiently beyond the algorithm, including “manual” checks and clarifications.
Advanced services for SMEs and startups
Since entering the market, Relio has expanded its range of offerings for SMEs and startups to include several services. Offers that are intended to position the Neo-Bank more clearly in the corporate customer segment and make differences visible.
Business accounts for Web3 companies
Relio explicitly positions itself as crypto-friendly and offers business accounts to Web3 companies. Blockchain startups often have problems accessing banking services. Traditional banks, including neo-banks, are still often unwilling to accept customers from the crypto industry due to a lack of Web3 expertise or regulatory concerns.
A few specialized private banks or crypto banks offer an alternative here. However, onboarding can be lengthy and the fees are often rather high.
This is where Relio wants to step in and position itself as a partner and neo-bank for the Web3 industry. Also in this segment with the arguments: Fast, problem-free and cost-effective. With the self-expressed intention not to let Crypto Valley degenerate into a crypto desert in the area of bank connections for startups.
Digital capital payment account for company start-ups
Relio has identified a gap in the digital workflow when setting up a company and, since August, has been offering digital capital deposit accounts that business customers can open online. More complex business cases or companies with foreign beneficial owners and international managing directors can also use this offer.
In Relio’s opinion, this group has so far been neglected by many banks because they shy away from the additional effort involved in compliance. With its self-developed compliance technology, Neo-Bank also wants to optimally cover this segment.
Around 50 startups already used this service during the pilot phase, which is now to be expanded further. Relio will soon offer the option of issuing the capital payment confirmation completely digitally with a qualified electronic signature (QES). Customers should also soon be able to carry out a repayment or a capital increase using the same service.
International transactions, foreign currencies and multi-currency accounts
Swiss IBANs and CHF accounts for domestic payments were already in the program at the start. Now Relio is expanding its features with international payments, foreign currencies and multi-currency accounts. At launch, the service supports CHF, EUR and GBP and enables transactions in over 40 countries. Other currencies and countries are to follow soon.
In the area of international transactions, Relio also relies on automated maximum compliance and minimal friction with its algorithm. According to its own statements, the Neo-Bank wants to redefine compliance in international payment transactions with its newly developed technology.
Cross-border transactions are often associated with complex regulatory requirements that require financial institutions to verify the legality of money flows, document the origin of the funds and understand the purpose of the transactions. As a result, companies sometimes experience delays and disruptions in international payments due to regulatory challenges and false positive compliance alerts.
Relio’s automated compliance system uses data collected at account opening for transaction monitoring to match each customer’s unique business profile. This data-driven approach is designed to improve the detection of suspicious activity while minimizing false positives and ensuring smooth, fast and reliable processing. As a result, according to Relio, the resources that have to be used to comply with the regulations in cross-border payment transactions are reduced for both customers and the neo-bank.
Relio one year after entering the market
There are no customer figures just a short year after entering the market, but the neo-bank appears to be developing well and according to plan. Relio is constantly expanding its services for the corporate customer segment, which strengthens the neo-bank’s position in its chosen niche.
According to its own statements, Relio benefited greatly from the Credit Suisse effect. In concrete terms, this means that corporate customers who have become homeless and do not feel particularly welcome at big banks or traditional banks are making a new start with neo-banks.
The managed niche creates a good starting position for the vertical. Within the Swiss neo-banks, Relio has an advantage due to its exclusive focus on corporate customers and can exploit its strengths. The USP that Relio can and wants to deal with complex or special companies should open further doors.
