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Railsbank arrives in the US

London-based open banking platform Railsbank has launched in the US, introducing a first-of-its-kind Credit Card as a Service (CCaaS) offering.

The CCaaS technology is designed to make it faster and cheaper for fintechs and brands to launch into the $3.8 trillion American credit card market.

The startup's first US client is Unifimoney, a neobank targeting high-earning professionals, which will use the tech for its credit card, launching in the fourth quarter.

Meanwhile, to support the new operations, Railsbank has also appointed former head of Banking As A Service at Green Dot Dov Marmor as COO, North America.

Nigel Verdon, CEO, Railsbank, says: “The high costs and complexity of launching credit card propositions have stifled innovation by creating barriers to entry to all but the largest of traditional financial companies.

"Fintech has changed the face of much of the banking industry, but, to date, the credit card market has been immune from this disruption. Railsbank will be able to drive change in the market with its CCaaS offering."

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Editorial | what does this mean?

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Comments: (1)

Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 13 July, 2020, 17:00

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When I wrote When Will Fintechs Sell What Consumers Want To Buy? in 2018, I was alluding to Credit Card. Since then, there has been a trickle of credit card offerings from fintechs / nonbanks viz. Petal, Apple Card. Hope Railbank's Credit Card As A Service platform changes that to a wave.

While I'm personally gung-ho about the prospects of Railbank's CCaaS, I'm a little perplexed by its own role model "Fintech has changed the face of much of the banking industry". With less than 1% of bank accounts in the USA (Source: Cornerstone Advisors), fintech has done no such thing.

In fact, as I've often predicted in the past, credit card will be fintech's real chance to change anything about the banking industry. Not yet another bank account or payment app or PFM / MoMMA.