Fintech Friday: Xaalys

Xaalys is developing financial literacy among French youth. Its founder, Diana Brondel, spoke with Efma’s Boris Plantier about the neobank’s founding and mission.

How did you come up with the idea to create Xaalys?

Before creating Xaalys, I was working at Société Générale for 10 years. However, as innovative technology started emerging in the banking industry, I developed a strong interest in the digital transformation of banks and the rise of FinTech’s, which I believed would open doors to new opportunities. The study that I have undergone within “La Société Générale” allowed me to discover that a banking solution completely dedicated to teenagers in France did not exist. Current market players had overlooked the fact that it would be the new generations of teenagers born within this period of digital disruptions that would stimulate new banking habits.

My son also had an important role in the creation of Xaalys, which all started when he came to me one day explaining that he intended to buy a whole toy store with the 2€ coin that I had given him after he had lost his fairy tooth! It is then that I realized he had absolutely no understanding of the value of money. That is when I decided to create a banking solution which I would like to use myself as a mother in order to develop my children’s knowledge in terms of financial literacy.

Could you describe the product Xaalys offers?

As a mother and ex-banker, I have created Xaalys, the first French neo-bank dedicated to 12-17-year olds. The Xaalys app is split into two interfaces: one for the teenager and one for the parent. For only 2,99€/month, the teenagers are given an account, completely controlled by the parent, with a French IBAN and a payment and withdrawal card in their name. It allows the parent (through their interface) to adjust spending and withdrawal limits, activate spending alerts, and accept/block specific shopping categories for each child. Through this interface the parent can also send money to their child’s account by either a bank transfer or card payment and interact with him through the in-app chat or by participating in his money pots.

What is your offer in terms of financial education for teens?

Xaalys has been designed to foster teenagers’ financial literacy while paving the path to independence because we are convinced that mastering your own money, no matter how small the amounts are, is key to raise more responsible adults. As it is opened to everyone, disconnected from any traditional banking network, the Xaalys mobile bank reinvents digital banking by giving teenagers access to wish lists, shareable money pots, simplified saving programs, a chat feature to communicate with their “tribe” (friends and family) and gamified financial literacy content (quizzes, charades) to improve their financial literacy.

Xaalys has partnered up with “La Finance pour Tous”, an association created to provide everyone with an educational perspective on money and to give the French the necessary means to make more informed decisions regarding their finance needs.

What is coming next for Xaalys?

In a few years I would most likely see Xaalys expanding into other European countries as well as offering new in-app games and growing our brand partnerships to offer teenagers discounts at their favorite stores.