French mobile payments app Lydia has unveiled a new challenger bank, Sumeria, committing €100 million to the venture and planning to hire 400 new employees over the next three years.
As an e-money institution, Lydia has grown its user base to over eight million, offering a broad range of financial services. However, the company has decided to reposition its payments app solely as a P2P platform for quick money transfers between friends and contacts.
The newly launched Sumeria will operate as an independent entity, providing comprehensive banking services including current accounts, joint accounts, savings, credit, and investments. Users will also receive a dedicated IBAN and a Visa debit card.
This strategic split aims to cater to users who prefer a simple P2P payments app while expanding financial services under the Sumeria brand. Currently, two million out of Lydia’s eight million users have explored its broader financial offerings. Sumeria targets reaching five million customers within the next three years.
To enhance customer experience, Sumeria plans to open a bank branch in Paris, modeled on Apple Store’s Genius Bar, offering personalized guidance and support for account setup.
This move highlights Lydia’s commitment to innovating and expanding its services, ensuring a tailored approach for both basic and advanced financial needs.