#WealthTech / Fintech Jiko buys a bank

Jiko, a fintech startup offering an account where all customer deposits are turned into Treasury bills, has received the regulatory all-clear to buy a bank.

Jiko… is led by former Goldman Sachs trader Stephane Lintner… Jiko is set to emerge from beta and launch its app-based account that immediately turns deposits into T-bills. When customers make a payment or an ATM withdrawal with their Jiko card, the equivalent amount in T-bills is sold to cover it.

Jiko has spent the last three years quietly building its core infrastructure, which merges payment rails with real-time, 24/7 principal trading capabilities on T-bills. This means that an investment can act as a liquid and spendable alternative to cash.

The benefit of the model, says Jiko, is that customers get to keep the yield on the treasuries… the Jiko account generated a 3.3% annualised return last year.

[Jiko:] “People’s relationship to money must be fundamentally improved for everyone. One of Jiko’s primary goals is to give people what they deserve: more organic and direct returns, without intermediaries and unnecessary friction”.

https://www.finextra.com/newsarticle/36504/fintech-jiko-buys-a-bank