The small Brazilian bank, Banco Pottencial SA, has partnered with fintech startup 'Contro.ly'to launch a bank named Banco Neon that will provide digital banking that targetsyoung customers, Valor Econômico reported.
The partnership represents a lifeline for the nearly Banco Pottencial, whichhas only 170 million Brazilian reais in total assets and is presently ranked No.61 per asset size among Brazil's financial institutions, the report said.
The Banco Centraldo Brasil had reportedly earmarked Banco Pottencial in May as one ofnine banks that required "special surveillance" due to signs of instabilityand liquidity concerns.
Banco Neon will operate as a mobile application and plans oncharging low fees for banking services. It will not be offering credit serviceswhen it rolls out. "My current plan is not replacing the customers' creditcard, but rather [managing] their current account," said Pedro Conrade, presidentof Banco Neon and Contro.ly's founder, was quoted as saying.
The bank plans to end its first year of operations with 100,000active accounts. There are also plans to expand Neon's products to corporations,the publication noted.
As of July 12, US$1 wasequivalent to 3.28 Brazilian reais.