Aspiring ‘neobank’ announces new partnership

Douugh, an AI fintech platform based in the United States, has announced that it has partnered with Mastercard to initially roll out a smart bank account featuring a Mastercard debit card when it launches in 2019.

According to the neo lender, the Douugh account will provide a full suite of everyday mobile banking functionality, along with features focused on helping users pay off debt, spend less, save and build wealth.

The fintech has said that its partnership with Mastercard will accelerate the fintech’s plans for product innovation and growth in key markets.

Founder and CEO of Douugh Andy Taylor said the business is firmly focused on launching and scaling in the US before expanding with Mastercard into key international markets, beginning with Australia.

“We believe the future of banking is about data and identity. Our ultimate goal is to become a platform business, offering a financial control centre where people’s finances are managed on autopilot,” Mr Taylor said.

“Short term, we will expand our AI capabilities and offering into wealth management and credit. Long term, we will look to foster an ecosystem of partners within our own marketplace.”

Mr Taylor sought to emphasise that Douugh is a technology company, developing its own proprietary technology stack and leveraging the banking licence of an existing bank.

“Technology and the pioneering of new a platform-based business model will be the key differentiators in winning customers off the major banks, and it will be the true fintechs with global scale that will be best placed to capture market share,” Mr Taylor said.

Richard Wormald, Mastercard’s division president, Australasia, added: “Mastercard is excited to partner with disruptive fintechs like Douugh to accelerate innovation. Through partnerships such as this, start-ups are able to leverage Mastercard’s capability across technology and services to grow and scale.

“With the launch of the Mastercard Tech Hub in Sydney this month, the organisation looks forward to working closely with start-ups like Douugh across Australia and globally.”

[Related: Mortgage fintech closes $25m capital raise]