Leonteq boss Jan Schoch granted a sneak peak into the workings of his side project, Flynt. The Zug-based fintech bank has ambitious targets – and global platforms like Uber and Google as role models.
Uber is the world's fastest-growing car firm, but it doesn't own any taxis. This is the business model being adopted by Swiss bank Flynt, which is majority-owned by Leonteq co-founder Jan Schoch.
Flynt has none of its own products, nor will it sell third-party ones or advise clients – not a traditional wealth manager then.
So why did it apply for a bank licence, as Flynt has and was granted last month (finews.com reported)?
Tech, Not Finance
«Unlike many banks, we are pursuing an infrastructure strategy, not a product strategy,», Flynt boss Stijn Vander Straeten said on Wednesday at a media briefing in Zug.
The firm sees itself not as a financial services provider, but a tech firm. Flynt has built a platform that enables the super-wealthy to manage their money digitally – both traditional financial investments like stock and bonds as well as non-bankable ones, like real estate.
Ultra-Wealthy Target
Flynt's target market? Ultra-high net worth clients, who will pay 20,000 Swiss francs just for access to the platform. An annual fee which could rise, depending on the complexity of their assets.
The bank, which employs 43 people, expects to reach break-even as soon as it has won 200 to 300 clients, Vander Straeten said. The platform went live recently, and counts four clients.
Persuading Partners
Flynt's success lies in its ability to convince the business partners of its super-rich clientele – banks, family offices, independent asset managers – to ship Flynt data. In other words, to open an interface to a third party.
The new firm's aim is to cram as much data as possible on its platform, in order to provide clients with an overview not only of his or her funds but also to compare prices and performance of various financial providers.
Vander Straeten is optimistic that banks and other providers will agree, since Flynt doesn't represent direct competition. If push comes to shove, Flynt's clients can threaten to pull their money if banks don't grant access, he hopes.
Buying, Selling Via Flynt
The fledgling firm says it is in the first phase of aggregating client data. Further steps include additional offerings such as liquidity planning.
Further out, Flynt clients should be able to make payments or buy and sell securities directly via Flynt – the reason that the fintech firm has applied for a full banking license, Vander Straeten said.
