[FW Radar] FinTech Sogexia wants to compete with banks on payment

by bold-lichterman

Sogexia was founded by the Füg family in June 2011. FinTech offers individuals and businesses the opportunity to open an online account. They can then manage everything from the Internet. Everything is thought out to allow you to better visualize your expenses, transfers etc. Thanks to partnerships with groups such as SNCF, users can benefit from reductions.

More details with Kilian Füg, Managing Director of Sogexia.

FrenchWeb: What needs does your service meet?

kilian-fugKilian Füg, Managing Director at Sogexia: The genesis of Sogexia starts from an observation, that of recognizing that current payment solutions do not meet market needs. Businesses are struggling to effectively manage their key payment activities. And individuals and professionals complain of excessively high prices in relation to the services provided as well as a lack of visibility on their money. Over the past 4 years, we have therefore set out to reinvent the bank by developing our own electronic payment platform, with the desire to provide users with well-thought-out innovative payment solutions, adjusted to demand and which make the most of the current technology and technique.

What’s your value proposition?

We offer individuals and professionals the first 100% digital payment account. It can be opened in less than 5 minutes without any conditions, and allows you to obtain an RIB and a Mastercard to manage all of your daily operations (transfers, direct debits, etc.). Moreover, unlike a traditional bank account, the account works in real time. That is, all payments made are reflected immediately in the transaction history and transfers are credited upon receipt, with no additional value days. The account also makes it possible to obtain up to 20% reductions in more than 850 partner brands (SNCF, Amazon, Fnac, etc.) and to better control your budget, because expenses are categorized automatically and presented in the form of easy-to-understand graphs. to easily know where your money is going. We are also present on the business market with a solution allowing them to manage their own fleet of prepaid bank cards independently. The service takes the form of a payment account from which they can load and unload their cards in real time. The cards can then be used as part of the management of professional expenses (given to employees), customer loyalty or compensation. Finally, we offer tailor-made and white-label banking services to any company wishing to launch its own payment solution.

Who are the users of your solutions?

Initially, we thought that the users of our digital payment accounts would be mainly unbanked or underbanked people and that professionals having difficulties opening an account. But in the end, the target is much wider and the majority of our customers are already banked. They simply want more modernity, simplicity, and value-added services that are useful in their daily lives.

Regarding the business part, we primarily target very small and medium-sized businesses because, paradoxically, they constitute the economic heart of France while being the most poorly served by the traditional banking system. We also have several large accounts (Renault or Johnson & Johnson, for example) which use our professional fees and loyalty cards as part of their international activities.

Our tailor-made banking services are intended for players in bancassurance, mass distribution or more generally for service companies.

Who are your competitors?

Our main competitors are the traditional banks. Failing to have their means, we have more agility and lower structural costs enabled by our electronic payment platform built from scratch and the fact that we are 100% digital. We can therefore offer modern solutions with an ultra-fast production cycle that allows us to stay at the cutting edge of technology, without suffering like them from a heavy obsolete IT legacy.

What is your development plan?

We plan to continue innovation by improving current tools and continuously offering our customers new relevant services. During 2017, we will launch our online and point-of-sale payment acceptance solution for merchants.

For now, the rate of growth is sustained. Since the launch of our digital accounts we have become profitable and the flow is doubling from month to month. We therefore plan to maintain this course and pass the 100,000 customer mark in 2017.

We are licensed to operate throughout the SEPA zone and already have customers in more than 28 countries. However, marketing actions appropriate to each country must be undertaken in order to maximize our reach and harmoniously extend our solutions across Europe. This is part of our Horizon 2018 development plan.

What are your challenges?

Our competitors are big and being a start-up, they have a strike force that we naturally do not have. The challenge is therefore to continually offer relevant solutions that meet real needs and break with what is currently being done.

We are currently preparing a fundraising of 1 to 2 million euros in order to strengthen our regulatory status by becoming an electronic money institution. This will allow us to be even more flexible.

On the recruitment side, we want hire good IT engineers, IT being our core business, and excellent customer advisers. Because one of our strengths is the quality of our customer relationship.

Founders: Richard Füg and Kilian Füg

Creation date : June 29, 2011

Fundraising : any

Seat : Lyon

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