- Razer, known for gaming hardware, has its eye on banking licenses in the US and EU.
- This is a risky move considering the gaming hardware company will face competition from over two dozen established neobanks.
- Insider Intelligence publishes hundreds of research reports, charts, and forecasts on the banking industry with the Banking Briefing. More information on subscribing can be found here.
Business Insider Intelligence
The aim is to serve "the underserved youth and millennial segment" as well as entrepreneurs and small businesses. Earlier this year, the California-based company applied for a banking license in Singapore, where it already was entered Financial services With a virtual wallet and merchant services. Razor Views the financial business as the most important growth initiative outside of cloud-based gaming.
Elbowing in Neobank territory is risky for a newbie. Razer's payment services make sense in the gaming world as platforms for in-game commerce and to some extent as affinity programs for the company's customers and merchants who wish to sell related content and services.
But the "youth bank" that she wants to create and expand based on the strength of her brand is an extraordinary departure from her core business. With Razer's global ambitions, she would do so face Over two dozen established neobanks in a market that rough unprofitable. After entering the US and Europe, it would compete with heavyweights like Chime, Revolut and N26.
Big consumer brands don't leave much room for smaller businesses with their financial services ambitions. Razer is one of many non-banks around the world who offer or want to offer banking products. Razer's application for a Singapore banking license came along with Ant Financial applied for the same – after both Ant and Tencent obtained banking licenses in Hong Kong.
Rakuten, a Japanese e-commerce company, said that would reapply for a US banking license. And news earlier this summer broke Google worked with a consortium of financial institutions on digital checking and savings accounts for Google Pay users. There's a good chance the US government will open the door to banking services from non-banks: Has a US regulator outlined how non-banking companies could apply for and obtain FDIC insurance for deposit products. This is a dangerous game for Razer: without the two-way network typical of a full-service bank or e-commerce platform, it's in a poor place to start.
Would you like to read more stories like this one? How to get access:
- Join other Insider Intelligence clients receiving this briefing, as well as other bank projections, briefings, charts and research reports in their inbox every day. >> become a customer
- Research related topics in more depth. >> Search our coverage
Are you a current Insider Intelligence customer? Sign up here.