Founded in September 2018, Indó is the first challenger bank in Iceland and intends to focus on digital innovation and transparency.
The digital lender said it is targeting customers’ primary salary-deposit accounts with a new-build and low-cost model along with the existing financial infrastructure. Initially, indó plans to offer a debit card account and expand its product portfolio over time through partnerships with third parties, while operating as a digital-only bank.
Indó CEO Haukur Skúlason said: “Over the centuries, banking has evolved from ‘a place to store money’ into a vast, complex financial services industry – one that is steeped in the mystique of money, privilege, power and exclusivity, thriving on opacity and getting away with shoddy customer service.
“The financial services industry is one of the lowest-ranked worldwide when it comes to trust and is driven by bank failures, ongoing scandals, revelations of corruption and participation in money laundering. indó is going back to the roots of banking to restore trust, regain transparency and return tradition to a field that sorely needs a new approach.”
Indó will launch a card-linked app and current account with market-beating interest rates. In its mission to become the ”world’s least powerful bank”, indó never directly manages user funds. Instead, it operates a ‘narrow banking’ model whereby deposits are safely deposited with the local central bank, ensuring a 100% safe and transparent banking service. Indó lives by three core principles. The first is the ease of creating an account that is designed for financial health. The second is a fair and transparent fee model that is aligned with customers. Finally, it is being open with customers so they know what is being done with their money.
In cooperation with Startup Iceland, Indó will be hosting an event on May 12th where Tryggvi Björn Davíðsson And Haukur Skúlason the founders of Indo Savings Bank will share their fund raising journey.