Lydia, which started out as a peer-to-peer payment platform, has partnered with French fintech Cashbee to offer savings accounts, through TechCrunch. Users can open savings accounts through a mobile app and transfer money between bank accounts and their Cashbee accounts.
Savings accounts on Lydia’s platform are at a disadvantage compared to Cashbee, but Lydia’s extensive financial services could provide a streamlined user experience. Lydia’s savings account has an interest rate of 0.6% and an introductory rate of 2% for the first two months. But opening a savings account with Cashbee directly gives users the same introductory rate for three months. Users must also deposit at least € 1,000 ($ 1140) with Lydia’s savings account offer, while Cashbee only has a minimum of € 10 ($ 11.40), which it results in a larger addressable market. That said, existing Lydia customers who open a savings account don’t need to download a separate app like Cashbee and can have all of their financial services in one place.
The partnership is mutually beneficial: it gives Cashbee access to a wider customer base and helps Lydia become a great fintech app.
- Lydia already has 5 million users who will now be exposed to Cashbee savings accounts. Cashbee only offers savings accounts on its proprietary platform, which gives Cashbee a great opportunity to diversify its customer acquisition channels.
- Lydia took care of adding new services to its platform to cover all the financial needs of its clients. He recently added a debit card, aggregation of accounts and donations to its payment platform. This too offers loans through fintech partnerships, and with Cashbee it is moving closer to becoming the primary hub for all financial needs, creating a stronger value proposition and additional income streams.