a bank attracts american madness

In the US, there is talk of the new GloriFi bank even in The Wall Street Journal. His name has enough, even in France, to be understood by everyone. But instead of glorifying what the banks are trying to glorify today to embellish their image (fighting inequalities, against global warming), this neo-bank, for its part, looks at glorification of God, bearing arms and the fatherland. Far from a classic neo-bank like Revolut in France, and far from as stable and secure at the same time.

Peter Thiel, the founder of PayPal, Palantir and supporter of Donald Trump, has joined the investors of the ultra-conservative project. The creation of this new “anti-woke” bank (woke denotes the fight for the feminist, LGBT and anti-racist cause) is divisive, and the establishment has not yet received a banking license. Meanwhile, as other neo-banks do, GloriFi is going through a partnership with another company. The list of investors is long. Crazy as it may seem, the neo-bank says it has a valuation of $1.7 billion and is already looking to go public.

On the list of “reactionary billionaires” who invested in GloriFi, as the newspaper called them The echoes, there are several sympathizers of Donald Trump, but also Kenneth Griffin, the founder of the hedge fund Citadel (well known in the GameStop affair). According to some, the market GloriFi is targeting would be the smallest 100 million Americans “who want to be free”. To entice them, the bank has built its offer around its values, with a 10% reduction on home insurance for all gun owners. Beware: GloriFi wants to insure its customers if they commit murder by increasing their legal fees.

On its social network, the institution’s publications all relate to the values ​​of the neo-bank, which behind their good intentions reflect nationalist and reactionary aspirations. GloriFi does not hide behind a bank and a political party. When its launch was announced at the beginning of October, the neo-bank was happy to have reached its goal of a month in just 4 days. According to management 50,000 people would have opened an account. The page is an article from The Wall Street Journal highlighting the setbacks in its model has shaken the startup somewhat internally.

GloriFi instability

“Toby Neugebauer has stepped down as CEO following a Wall Street Journal article detailing the company’s rocky beginnings”, stated an article from the economic newspaper. As the launch of the neobank approaches, “Investor money was almost gone and GloriFi was on its last legs, his reporters explained. That said, Toby Neugebauer is not leaving the company for good, but is now taking over as executive chairman, as Jeff Bezos did with Amazon when he also left his role as CEO. On the information from The Wall Street JournalGloriFi turned a deaf ear and denied several points.

Nowadays, it is no longer possible to open an account at GloriFi. According to the company, which specified the reasons for this limit, it would have reached the maximum of its capacity for this first phase in beta and that it did not open more checking and savings accounts. The explanation seems a bit easy. The neo-bank wanted to grow too fast by merging with a SPAC, to go public as soon as possible. And this appears to be detrimental to it, with conditions that GloriFi did not meet for the company that provided it with the SPAC, DHC Acquisition Corp. Neobanken also had to cancel certain products (due to technical problems) and lay off a few dozen employees.

Faced with such a model, we prefer our more regulated European neo-banks. In addition, Revolut has also settled in the USA, in addition to currently having a credit institution license in Europe. It is now the most searched neo-bank in Europe according to Google searches. French customers (there are 2 million) can open an account with a French IBAN and get everything they need to make it a main account. A nod to Peter Thiel, who invested in GloriFi, Revolut is now attacking PayPal on the issue of online payments.

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