Today In Digital-First Banking: Memo Bank Rolls Out Interest-Bearing Account; Lending Platform October Lands Funding

In today’s top news in digital-first banking, Memo Bank is rolling out an interest-bearing account for companies, while lending marketplace October has notched roughly $303 million in funding. Also, Goldman Sachs is looking at reducing its workforce.

Memo Bank Launches Interest-Bearing Account for Businesses

Memo Bank is providing a new offering three months after receiving its complete banking license. The financial institution is promoting its new interest-bearing account as “an innovative current account with no volume fees that starts accruing interest from the very first euro.” It also says it is providing a “streamlined application process” for financing.

Lending Platform October Raises Funding for SMB Loans

October worked with major investors and landed €258 million (approximately $303 million) during the summer to fund small and medium-sized business (SMB) loans. The lending marketplace is adding state-guaranteed debt to its platform, alongside non-guaranteed loans and its financial leasing offering. The €258 million will be used to add new offerings to October’s loan range.

Goldman Eyes Cutting 1 Pct of Workforce

Goldman Sachs intends to proceed with a “modest number of layoffs,” according to a company representative, meaning approximately 400 individuals, as noted in a published report. That accounts for approximately 1 percent of the financial institution’s workforce and comes after the company halted job reductions because of COVID-19. In January, Goldman said it was seeking to have a 60 percent efficiency rate for the three years to come.

FinTech Capify Nets $10M Funding, Continued Goldman Backing

Capify has pulled in a further $10 million in an equity round of funding and is banking on ongoing support from the Goldman Sachs Merchant Banking Division for its SMB-focused lending platform. “The fact that we were able to raise $10 million for an online small-business lender in the midst of a global pandemic from sophisticated investors with industry experience speaks to Capify’s business model, the unprecedented opportunity ahead of us and its management team,” Capify Founder and CEO David Goldin said in a press release.