Japan-based startup SmartBank has announced the rise of a USD 26 million funding round, aimed at the development of its personal finance management app. Following this announcement, SmartBank will use the new capital in order to double down on hiring new employees, with half of the total workforce being the engineering team.

In addition, the financial institution will continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well. More information on the USD 26 million funding round The funding comes roughly two and a half years after Smartbank’s Series A investment, consisting of USD 20 million. The company has since expanded its user base and overall suite of solutions, with the goal being set on becoming a comprehensive and secure financial platform.

At the same time, it also focused on providing a wide and efficient range of financial tools to its users. The bank’s core product is a prepaid card and a finance management application that offers a deposit account. The prepaid cards include the B/43 My Card, the Visa-branded payment card for single individuals, the B/43 Pair Card for users to manage their finances with their partners, and the B/43 Junior Card for teens.

Through this investment, SmartBank will also make its solutions accessible to non-card users, providing them with the possibility to start leveraging B/34 without issuing a card and by simply linking their existing credit cards and bank accounts. This will allow the financial institution to expand its revenue stream. SmartBank also obtained a licence for money transfers three years ago, which allowed customers to withdraw their deposits in cash.

It received a prepaid payment instrument licence in April of this year as well, which enabled the startup to hold users’ deposits. These licences optimised the manner in which the company offers solutions, including payments and P2P transfers. According to the officials of Smartbank, the company also plans to diversify revenue streams beyond its IRF, where most revenue comes from.

In addition to interchange fees, the bank also has implemented other services like Buy Now, Pay Later (BNPL), subscription (B/34 Plus), and referrals. Source: Link .