moneyHOP to get UK licence in six months

The FCA is the authority that permits and regulates opening of bank accounts in the UK.

moneyHOP
This launch will help moneyHOP replace existing foreign currency wallets with multi-currency bank accounts, which will be issued in five minutes, the neobank said.

moneyHOP, a portal that provides cross-border payments and remittance solutions, will be the country’s first neobank to facilitate and allow Indians to open bank accounts in the United Kingdom, after it gets a licence from the Financial Conduct Authority (FCA) within the next six months, making it a banking entity in the UK, Mayank Goyal, CEO and founder, said.

The FCA is the authority that permits and regulates opening of bank accounts in the UK. This launch will help moneyHOP replace existing foreign currency wallets with multi-currency bank accounts, which will be issued in five minutes, the neobank said. This would essentially means travellers landing in the US can simply swipe their moneyHOP card and spend in dollars there, in pounds in the UK and transact in rupees in India.

Goyal said, “Forex cards, firstly, do not work in India, and secondly, they are prepaid instruments not linked to your account. This means you spend in India using your debit or credit card, then take a separate forex card while traveling abroad, and you use some platform if you need to send money abroad, use another platform if you want to scan, and pay in India via UPI.”
The aim is to help the customers’ moneyHOP accounts become the primary global expenditure accounts and also allow a single touchpoint access to facilitate international travel expenses, fund education abroad, help in shopping, send money across borders, invest in foreign equities and all international banking needs through one app and one card — like relationship banking, Goyal said.

moneyHOP also says it will not charge its users any account-opening fees in the initial days, at least. The documents required to initiate this will vary, and the discussion is still in the works but will have a list of the minimum documents an applicant will need, with necessary due diligence completed and additional work if an applicant’s “risk score” is high.
moneyHOP already has a team of at least six people working in its London office, registered there.

There are multiple neobanks in India offering a diverse set of products like savings, lending, investment, insurance and other domestic services, but moneyHOP says its goal is to solve cross-border banking problems. The biggest entry barrier currently is the outward remittance of money from India which is regulated by the Reserve Bank of India and should comply with the Foreign Exchange Management Act (FEMA).

“Irrespective of geographies, moneyHOP provides one app and one card which will let you hold, send and spend in any currency anytime, anywhere, in a 100% digital, economical, transparent and seamless manner. Getting an FCA licence in the UK is just the first step of many as we plan to also expand moneyHOP into the various other emerging markets,” Goyal said.
moneyHOP had raised $1.25 million in August 2021, in its seed round, from prominent global investment bankers. It is currently not in talks to raise additional funds.

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