Finom Launches Interest Account for European SMEs

Finom, the integrated financial management platform for freelancers and modest-to-medium enterprises (SMEs) in Europe, has launched an Interest Account offering daily returns on EUR balances. This new feature aims to address a significant gap in the European business banking landscape, where SMEs often struggle to earn competitive interest on their working capital.

Addressing Idle Capital in European Businesses

According to Finom, billions of euros in working capital are currently sitting idle in business accounts across Europe. While larger corporations typically have treasury teams dedicated to maximizing returns on cash reserves, freelancers and SMEs often lack the resources or expertise to do so. The European Central Bank (ECB) deposit facility rate currently stands at 2%, but many eurozone banks offer significantly lower rates – or none at all – on business current accounts.

How the Finom Interest Account Works

The Finom Interest Account offers eligible business customers up to 5% annualised interest on their EUR balances. Interest accrues daily and is automatically credited to the account, with no lock-up period or fees for eligible users. This allows customers to access their funds instantly when needed, providing both flexibility and a return on their capital. The 5% interest rate is applicable for the first five months, after which Finom will revert to a rate of around 1.75%.

Partnership with Aksys Global Markets Europe

The Interest Account is powered by a partnership with Aksys Global Markets Europe, a fully licensed EU investment company. Client funds are invested in low-risk money market funds (MMFs) within a fully MiFID-regulated structure, ensuring a secure and compliant investment environment. “Through our partnership with Finom, we enable small businesses and self-employed people to put their working capital to operate for them easily and without specialist knowledge in a regulated, low-risk structure,” explained Imad Assio, Executive Director at Aksys.

Finom’s Growth and Expansion

Finom currently serves over 200,000 corporate customers in Europe. The company recently secured €115 million in Series C funding led by AVP (previously AXA Venture Partners), with participation from Headline Growth, General Catalyst, Northzone, and Cogito Capital, to fuel further European expansion.

Key Takeaways

• Finom’s Interest Account provides SMEs with a way to earn returns on idle EUR balances.
• The account offers up to 5% annualised interest for the first five months, then approximately 1.75%.
• Funds are fully accessible with no lock-up periods or fees for eligible users.
• The service is underpinned by a partnership with Aksys Global Markets Europe and operates within a MiFID-regulated framework.