Ffrees proposition to these, often financially excluded, customers, is for a simple, transparently-priced current account service that helps them manage and save up their money as opposed to getting into debt. This service is delivered in a user-friendly, modern, digital framework where access to services, support and other like-minded customers, reflects the socially networked world in which the majority of Ffrees’ account holders live.
With nearly 45,000 new accounts opened in 14 months, the company is poised to take advantage of the disarray of the banks which are grappling with major re-organisation, legacy operational models, mis-selling and other scandals, regulation and anti-competitive practice investigation. These problems are multiplied by the deep mistrust felt by consumers for the banks and their frustration at the banks’ inability to provide a modern digital service.
These dynamics herald a period of major change in the UK banking sector as disruptors such as Ffrees take advantage of the low cost e-money infrastructure and regulation to bring digital banking to millions of frustrated and often disadvantage individuals.
Ffrees Family Finance (“Ffrees”) is the fastest growing “neo-bank” in the UK. It is a purely on-line current account service and targets those 60% of customers from whom the banks cannot make profit from current account activities except through penalty fees. This universe coincides almost precisely with the 60% of UK adults who have no savings.
Alex Letts – Founder & Chief Executive Officer of Ffrees Family Finance.