Arival takes step closer to US banking licence
San Juan-based Arival aims to raise $3 million through crowdfunding and says it is on track to become the first licensed digital bank in the US this year, reports Jane Connolly.
Arival states that it is not a neobank or challenger bank, rather a fintech that aims to serve “abnormal” customers, such as crypto businesses, freelancers and e-residency firms.
The company was founded in 2017 by experienced fintech investors Vladislav Solodkiy and Igor Pesin, along with entrepreneur Jeremy Berger.
Having announced his US ambitions last year, Solodkiy says that Arival is now in the final stages of receiving its US banking licence and has attracted over 750 business account requests.
He says in a LinkedIn post: “The fintech bank is the next big thing in fintech and digital banking. Our focus on ‘abnormal’ clients gives us the opportunity to not compete with other traditional or digital banks, avoid spending money on advertising or customer acquisition and allows us to focus on margins and profitability of the bank.”
Solodkiy adds: “Our cutting-edge compliance serves as our secret sauce and enables us to onboard ‘abnormal’ clients and will be one of the main revenue streams for us.”
Arival intends to start as a digital bank for businesses following the B2B2C model. Then it will offer services to underbanked businesses such as e-residency firms, charities, online start-ups with foreign founders and legal sellers of marijuana.
Next, the fintech will target individuals such as expats, refugees, bloggers and digital influencers.