Digital current account provider Ffrees raises third round of funding worth £2mBack to Media
Ffrees, the UK’s leading digital current account provider, has closed a £2m investment round from a syndicate of investors including Finance Yorkshire, Nesta, and the Technology and Innovation Fund.
Ffrees will use the funding injection to expand the capabilities of the company’s unique platform; by introducing new products including a mobile app, as well as, investing in customer interaction offerings.
Established in 2012, Sheffield-based Ffrees is one of a new breed of small, fast-growing financial technology -‘fintech’ companies which is offering an entirely different approach to the retail banks. It currently has 35,000 UK customers and is adding around 1,000 new ones each week.
Within the next five years, Ffrees aims to have 1 million UK customers.
This news follows the announcement that Lloyds could axe 9,000 more jobs over the next three years as demand for high street outlets plummet and retail banking increasingly shifts towards online banking and digital providers.
Founder Alex Letts said: “The real estate model of retail banking is rapidly collapsing. Customers require customisable data-driven services, rather than inflexible analogue products. They want to access their money at will from connected devices whenever and wherever. And they want to pay a fair price transparently to a trusted provider. That is the model that we at Ffrees are building and this new investment helps to accelerate the rapid progress already being made.
Ffrees is not a bank but a current account that also helps customers to save. We don’t rely on their wealth for our revenues, there are no unexpected fees and we don’t try to sell them products. We don’t offer overdrafts and we don’t run credit checks.
A vital part of our ethos is saving and effective money management – we aim to take customers away from the debt mentality and encourage them to control their finances through tools such as our online ‘Jam Jars’ and the Ffrees Money Manager, which is free and helps to pay bills, avoid debt and control spending.”
Ffrees Current Accounts offer a unique ‘Jam Jar’ banking function, enabling ring fencing of funds so that Account Holders can better manage their money. Ffrees current accounts help customers grow their regular savings by using a Save a £1 a Day facility to build up funds into their Jam Jars. In addition to this, the Ffrees current accounts offer a network of over 1,000 retailers for account holders to receive cash-back payments as they spend.