Jiko, an aspiring digital bank, has acquired a small retail bank according to a report.
CNBC states that Jiko, founded by a former Goldman Sachs executive, has acquired Mid Central Bank, a 63-year institution based in Minnesota.
Jiko founder Stephane Lintner, described as math wiz and a former Goldman trader, explained he intends on giving customers direct access to Treasury yields while charing a Netflix like subscription fee.
“As a first place to put money in, it’s an excellent place to be in. We built a scalable platform, we can go from zero to 300 million Americans, and do a lot of stuff with absolute stability. Now we can deliver an awesome experience and a number of other features.”
Linter’s vision is described as cutting out the middlemen in banking to offer more to consumers.
Jiko does have a growing amount of competition in the digital banking realm.
Just recently, Varo Money became the first Fintech to ever receive a bank charter after completing a process that took years to achieve.
Linter’s former employer also has a retail operation in Marcus – a digital bank with a fast-growing amount of deposits. LendingClub is in the process of acquiring Radius Bank to launch their vision of a “marketplace bank.”
Then, of course, there is a platoon of Fintechs that operate pretty much like a bank. Think Chime, Current … the list is getting longer.
The good news is that consumers and small businesses should have a growing amount of choice when it comes to banking with lower fees and better services. Meanwhile, incumbent banks are scurrying to close bank branches and update services to remain competitive.