Neobank has fully acquired money transfer company MyCash and the sum of the acquisition has not been disclosed by either company.
Neobank is a kind of direct bank and alternately called a digital bank, virtual bank, internet-only bank and online bank. It is a fintech-based financial service provider and mainly focuses on easing banking compared to traditional banks. It provides an end-to-end platform to help small and micro business houses in Asian countries to transform from into digital banking processes such as virtual debit cards, online business accounts, business cash line and spend management tools.
With the valuable acquisition of MyCash Money which is focused mainly on migrant workers, Neobank can leverage the consumer remittance business and simultaneously enhance the expansion opportunity in other Asian markets like Indonesia and Malaysia.
MyCash Money CEO Mehedi Hasan is learned to be retaining his position while Head of Payments Kenneth Goh will look after the growth of the payment business. Both will be working on Buy Now and Pay Later business model for SMEs in Bangladesh.
Neobank started Singapore operation in 2021 and lately has set its foot in Indonesia and Malaysia. It is licensed in Malaysia and the process is yet to be completed in Indonesia. It has plans to expand the business in seven more Asian countries including Bangladesh, Nepal, Sri Lanka, Thailand and Vietnam.
It may issue IPO in Singapore by 2025 and the company is optimistic as the valuation of the company may jump up to $1 billion as there is immense demand for cross-border remittance business.
According to Neobank founder and CEO Eldwin Wong, the demand for overseas remittance will be the driving force for the growth of both companies.
MyCash Money founder and CEO Mehedi Hasan said the business banking platform of Neobank will enhance the efforts of MyCash to expand the remittance solutions business of B2C and B2B.
Several so-called challenger banks emerged in the United Kingdom and other countries during the 2008 financial crisis period to facilitate clients to access services from computers or mobile devices. The services offered by Neobank are currently not broad and a large income of it comes from transaction fees.
MyCash is a unit of Mercantile Bank Limited (MBL) and is equipped with a host of financial products and services. It operates in Bangladesh. The Bangladesh Bank has authorized its Mobile Financial Services operation. It mainly focuses on offering secured and convenient service to the people. It makes life easy with an easy financial solution. With the help of Neobank, it can serve people beyond Bangladesh including Indonesia, Malaysia and Singapore.