BBVA-backed Startup Azlo Prepares For Launch

BBVA has revealed that its majority-owned, tech savvy banking startup Azlo is set to launch across the US, marking the Spanish bank’s latest attempt to move more readily into the digital sphere.

The startup, which will offer online banking services to small businesses and freelancers, was built within a BBVA division that funds stand-alone fintech startups, the companies said on Tuesday.

“Azlo’s goal is to level the playing field for the growing number of entrepreneurs and small businesses who wish to participate in an expanding global economy that is driven by entrepreneurs, small business owners, and freelance professionals,” said CEO Brian Hamilton.

Azlo will depend on BBVA’s banking license and payment infrastructure to operate across the United States, but will be run as an independent company, its founder and CEO Brian Hamilton said in an interview.

Founded in early 2017, Azlo has been in testing mode with a small group of clients over the past few months, Hamilton said.

BBVA has entered into a number of similar ventures and collaborations with other digital banking players including its cybersecurity-centric partnership with Covault on biometrics, its purchase of Simple in 2014, and acquisition of both Atom Bank and Holvi in 2015.

“The move, similar to the recent announcement about digital security business Covault, is part of BBVA’s focus on fostering disruption in the banking sector, and ensuring it learns from the innovations coming from outside the business,” BBVA said.

The move could help BBVA expand its retail presence in the United States, where it runs through its subsidiary BBVA Compass.

Azlo will target “gig-economy” freelancers and self-employed workers, a segment which has been overlooked by traditional banks but is expected to grow, Hamilton said.

“We are targeting an underserved segment,” Hamilton said. “If you walk into a bank and try to open a business account it is still pretty wonky and not easy.” 

Customers will be able to open the account online and will have access to digital tools for businesses, such as a service to send invoices to clients and request payments, he said.

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