ABN AMRO has confirmed that it will terminate its challenger bank and savings plan subsidiary Moneyou by the end of the year.
The Dutch bank initiated Moneyou as a customer savings plan programme in 2001, with its subsidiary undertaking a series of product changes throughout the course of its 20-year history.
Targeting new customers across the Benelux and DACH regions, in 2017 Moneyou was relaunched as a challenger bank, providing customers with Banking-as-a-Service (BaaS) facilities.
However, competing against a raft of digitally attuned personal finance apps operating across Europe, Moneyou’s new services failed to gain traction with its target market consumers.
Despite its new product offerings, Moneyou customers chose to remain with the firm’s legacy savings services, shunning its BaaS functions – a result which led to ABN AMRO divesting its Moneyou asset, selling its entire €2 billion Belgium savings portfolio to national incumbent Keytrade Bank.
Closing Moneyou, ABN AMRO stated that low-interest rates across the Netherlands and Germany had prevented ‘Moneyou from differentiating itself in the market’.
The statement added: “Against this background, ABN AMRO has decided to discontinue Moneyou activities.”
This morning, ABN AMRO announced its interim 2020 trading statement, in which the Dutch bank had reduced operating losses to €5 million, underlining that it had cut group costs by 8%.
ABN AMRO’s improved performance was overshadowed by Chief Executive Robert Swaak announcing the firm’s intentions to reduce its global headcount by a further 800 employees.
Updating the markets, Swaak maintained that his leadership focus was on returning ABN AMRO into operating profit, as the Bank remains majority-owned by the Netherlands government which maintains a 56% stake in the business following its 2008 bailout.