Today, Jiko, a fintech company that buys short-term Treasury bills with user deposits, announced the launch of its first banking-as-a-service client. It will introduce a banking app called Bliss in collaboration with Euphoria, a technology package for the transgender community that helps relieve the problems connected with gender transition.
According to the company, between 2 and 6 million persons in the United States identified as transgender, and 34% lack gender-specific identity, making it difficult for them to obtain financial products. Most banks’ regulatory systems don’t enable people in this scenario to open accounts, but Jiko worked with Euphoria to tailor the “know your customer” process for Bliss so that users could open accounts with other kinds of identification.
Official identity is a huge barrier for transgender people, Euphoria founder and CEO Robbi Katherine Anthony told to the sources.
To update the legal documents, people will need time, resources, and, in certain situations, the correct legislation. If they are changing their paperwork, they risk having mismatches evaluated by banks, which could prevent them from opening an account,” Anthony stated.
One of Euphoria’s investors, who happens to be acquainted with Jiko co-founder Rocky Motwani, brought the company to Jiko. That first conversation resulted in cooperation.
According to the press release, Euphoria estimates that partnering with a traditional bank to establish a platform for its community would take 12 to 18 months to implement, however, Jiko was able to assist them in launching Bliss in just a few months.
Jiko’s targeted movement away from consumer services and toward B2B solutions is reflected in this move. For each account, it charges a set monthly price. Customers’ cash is held in government-backed treasury notes in each account, allowing account holders to use them instantaneously through debit transactions.
The goal of Jiko’s design is to deliver one of the safest risk levels imaginable, with full spend capabilities, at the greatest rate feasible. Historically, the treasury bill has provided this risk-return level, ‘ Jiko CEO and co-founder Stephane Lintner told some sources.
Despite the fact that Euphoria is Jiko’s first BaaS client, Lintner claims that the company has a strong pipeline. According to Lintner, the company is in talks with Latino remittance networks and has witnessed a surge in demand from enterprises and crypto companies looking to keep funds.
Our primary offering is unique in that it is the same for everyone. Card issuance and retail accounts are the most common requirements for neobanks, community, and lifestyle apps. But, as Lintner said, a very large corporate treasury platform with Fortune 500 businesses would utilize the same API to open accounts for its corporate clients and assist them store their daily liquidity.