- Created by the team behind Life.SREDA, a fintech venture capital firm based in Singapore with 20 investments & multiple exits
- Currently over 650 requests on our waiting list to open accounts with us
- Applied for a US-based international banking license in 2018; expecting to go live in October 2019 pending license issuance
- Won the best of show award at Finovate and received media mentions or other awards from London Design Awards, Forbes, Wharton Business School, & others
- Working with San Francisco-based Mbanq to deliver cloud-based banking technology
- Total Amount Raised: US $301,826
- Total Round Size: US $3,000,000
- Bridge :
- Minimum Investment: US $10,000 per investor
- : Preferred Equity
- US $15,000,000 :
What is the problem? Too many clients today are rejected by traditional and even digital banks because they are viewed as abnormal, too risky, or unusual.
Who does this affect? E-Residency businesses, charity organizations, expats and refugees, legal sellers of marijuana, freelancers, crypto or blockchain-related businesses, politically exposed persons, bloggers and digital influencers, and more face a real challenge when trying to open a bank account.
Why does this problem exist? The answer is simple: compliance. It's not forbidden to work with these abnormal clients, regulators just require banks to be prepared enough, equipped enough, and responsible enough to onboard such customers. Compliance is an obligation, headache and an expense for banks - not their passion, key feature, or expertise.
We are built to address this problem. We are arguably the first bank that has made compliance our “secret sauce” and biggest differentiator. We’ll onboard these customers in a sophisticated, seamless, and completely compliant manner. We believe the market for abnormal clients will only continue to grow dramatically — this is a blue ocean with limited competition today.
*We have applied for our IFE banking license, but there is no guarantee that the license will be issued. While we wait for the issuance of the license, we will remain pre-launch. We expect to receive the license and launch in October 2019, but will be unable to launch until the license is issued.
We like to think of ourselves as the first true fintech bank. We’re not a neobank or challenger bank:
“Fintech banking” is the newest third wave in digital banking and the next big thing in fintech. Arival Bank is planning to:
- Exist as a licensed bank
- Have an open infrastructure (to host other fintech products & possible competitors on a BaaS-platform)
- Provide a full range of products & services for target customers (in order to fully replace the traditional bank for them)
- Provide each product line through an existing 3rd party fintech company (hence, “fintech banking”) in partnership with the bank
The experience will be like this:
- Tell us about your business
- Open your Arival bank account
- Access a full suite of fintech products hand-picked for your company
- Unified logins with fintech partners that we will integrate (i.e. potentially Transferwise, Expensify, Stripe, Square, etc)
- All product activity will be done inside the ArivalOS interface
- Aggregated data + transparent movement of money (everything will be connected to your Arival account)
- We plan to bundle some of the world's hottest fintech products tailored for your business - inside one banking platform
This is what the bank of the future should look like:ArivalOS (digital banking platform)
- Banking interface offering account management, transfers, 3rd-party fintech products, and everything in between.
- A full-stack compliance solution that covers everything from KYC & on-boarding to AML & transaction monitoring. We've designed a fully online compliance tool that effectively de-risks customers and gives them digital identities. Think of it as a virtual compliance manager.
We will have two main revenue streams:
- Fixed fees (subscription plans, one-time charges, basic account fees, etc)
- Revenue-sharing payments from partnered fintech products
The latter is fundamental for our financials. We’re going back to the basics of banking, but with a digital approach.
What's even cooler: we’re not engaging in significant balance sheet risk linked with taking deposits or loans (let’s not forget the recent banking crisis!), because almost all of Arival’s products and services will be provided by 3rd party fintech companies.
Two additional revenue-streams:
Compliance-as-a-service (A.ID): Since the beginning, we’ve built this service as a standalone product integrated into our platform through open APIs. We’ve been approached by B2B2C customers and other (traditional and digital) banks interested in using our compliance solution for their customers.
Banking-as-a-service (BaaS) platform: These B2B2C customers also requested to potentially open bank accounts, issue cards, and make transfers for their end-users.
Our journey and upcoming steps:
Yesterday: We started over one year ago and raised $1mm in seed investments with a post-money valuation of $10M.
Today: Before the IFE license is issued, the regulator will first issue an official “Permit to Organize” (to officially set up the bank named “Arival Bank International Corporation”). At this point, we’ll be required to provide the first tranche of paid-in capital ($550,000). This is why we’re opening a $3mm Seed round. Other proceeds will go towards more compliance R&D, BaaS, product development, and operational costs.
Tomorrow: We will prepare to raise our Series A round which will be linked to the issuance of our license. $5mm of the $10mm round will be used for paid-in bank capital.
It all started with a book.
Our CEO published, "The First Fintech Bank's Arrival" where he described what the bank of the future might look like. Little did we know, we would soon find ourselves at the center of building the “Fintech Bank”.
Arival was founded in 2017 by a dynamic trifecta consisting of two seasoned fintech venture capitalists and one young fintech entrepreneur. Regarded for the team's prior investments in pioneer digital banks such as Simple, Moven, Fidor, & RocketBank - they decided it was time to take the bull by the horns & build their own.
Our backgrounds are diverse, but our passion for bringing innovation to the banking space unites us. You'll surely find bankers & finance gurus on the squad and seasoned software engineers, as well as 20-something year old entrepreneurs with big dreams & real execution skills. Thanks to an eagerness to build & discover, Arival embraces a strong workplace culture.We're on a mission to bring a new level of banking services to the backbone of our economy: small to medium-sized businesses. Headquartered in Singapore. Operations based in Puerto Rico. The tech team can be found in San Francisco & St. Petersburg.
First 15 investors automatically receive "Arival" branded apparel regardless of investment size. We'll send you a list of our merchandise and sizes available two weeks after the campaign ends before shipping.
$25,000 or more: We'll move your business (or a different one of your choice) to the top of our waiting list so they can open an account sooner than anyone else. In the mean time, we'll invite the business to our private beta-test (pending compliance checks) to give them exclusive access to Arival.
$50,000 or more: Previous perk + 1 year of no annual Arival account fees (this does not include transaction fees).
$100,000 or more: Previous perks + 6 month free-trial of Arival+ (premium version with enhanced banking features or products)
$200,000 or more: Previous perks + invitation to Arival's private team retreat (expenses covered / 3 days in Puerto Rico) + non-executive advisory role pending background checks & board approval.
It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.
Frequently Asked Questions
When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by Arival. Once Arival accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to Arival in exchange for your securities. At that point, you will be a proud owner in Arival.
Preferred equity is usually issued to outside investors and carries rights and conditions that are different from that of common stock. For example, preferred equity may include rights that prevent or minimize the effects of dilution or grants special privileges in situations when the company is sold.
A convertible note is a unique form of debt that converts into equity, usually in conjunction with a future financing round. The investor effectively loans money to a startup with the expectation that they will receive equity in the company in the future at a discounted price per share when the company raises its next round of financing.
To learn more about startup investment types check out “How to Choose a Startup Investment” in our academy.
To make an investment, you will need the following information readily available:
- Personal information such as your current address and phone number
- Employment and employer information
- Net worth and income information
- Social Security Number or passport
- ABA bank routing number and checking account number (typically found on a personal check or bank statement)
Because Arival is offering its securities under Rule 506(c) of Regulation D, your status as an Accredited Investor will also need to be verified and you will be asked to provide documentation supporting your income, net worth, revenue, or net assets or a letter from a qualified advisor such as a Registered Investment Advisor, Registered Broker Dealer, Lawyer, or CPA.
Until a closing occurs, you may cancel your investment at any time, for any reason. You will receive an email when the closing occurs and your securities have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your portfolio page by clicking your profile icon in the top right corner.
Currently there is no market or liquidity for these securities. Right now Arival does not plan to list these securities on a national exchange or another secondary market. At some point Arival may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when Arival either lists their securities on an exchange, is acquired, or goes bankrupt.
You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement.
This is Arival's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity.
This investment is highly speculative and should not be made by anyone who cannot afford to risk the entire investment amount. In addition to these risks, you should carefully consider the specific information and risks disclosed in Arival’s profile.