Fintech Frollo teams up with BOQ to power Virgin Money's new digital bank

Fintech Frollo teams up with BOQ to power Virgin Money's new digital bank

A new digital bank due for launch later this year at Virgin Money will be aided by the purpose-driven financial wellbeing technology of Sydney-based digital finance platform Frollo.

Frollo will be providing the service through a partnership with the Bank of Queensland (ASX: BOQ), which purchased Virgin Money Australia (VMA) for $40 million in 2013.

Virgin Money will provide a mobile banking experience that promotes financial wellness, courtesy of Frollo's software as a service (SaaS) integration platform bringing together its artificial intelligence engine, application programming interface and partner integration.

Users of Virgin Money's digital bank are expected to benefit from enriched transactions and insights on their spending, as well as the ability to track bills, create a budget and set personal goals.

Frollo founder and CEO Gareth Gumbley describes the Virgin Money partnership as an exciting next step for the company.

"Financial wellbeing is an important topic, now more than ever," he says.

"Virgin Money is passionate about helping customers be financially better off, now and in the future, and we're proud they've chosen Frollo's SaaS Integration Platform to power categorisation, insights and financial wellbeing for their neo bank."

Gumbley's sentiments were echoed by Virgin Money CEO Greg Boyle.

"Helping our customers prosper and achieve their financial goals is at the heart of the Virgin Money digital banking experience," says Boyle.

"We're thrilled to be partnering with Frollo to provide our customers with actionable insights on their spending and savings habits, to help them take control of their financial wellbeing in an engaging and rewarding way."

In BOQ's annual report released last week, managing director George Frazis said the  VMA bank build would benefit from of an existing customer base and the support of the bank's group.

"The VMA platform is a market leading technology solution providing customers with a personalised digital experience," Frazis said.

"It is an API (application programming interface) first in design and has been developed as a cloud based scalable solution, with an evergreen upgrade path, hosted in Australia.

"This project is key to the digital transformation of BOQ and will provide us with the ability to sustainably grow our market share through a highly efficient channel."

VMA's mortgage portfolio delivered 28 per cent growth in FY20, lifting the portfolio to more than $3.2 billion.

Today's announcement comes more than a year after Frollo acquired AI tech startup Hip Money, leveraging technology that help users eliminate debt and save money.

Earlier this month, neobank Douugh (ASX: DOU) listed on the ASX with a an oversubscribed $6 million capital raise, driven by a similar mission to help customers take control of their spending through AI-powered technology.

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