Online bank’s hub strategy borrows from across the pond
In a continuing effort to become an all-encompassing financial hub, Radius Bank in Boston is building out its online marketplace to connect customers directly to insurers, personal loan providers and a wealth management platform.
The $1.3 billion-asset online bank in June partnered with Huddl, a crowdinvested marketplace built to offer mass-affluent users investment opportunities usually reserved for the wealthy.
Mike Butler, the president and CEO of Radius Bank, said Huddl will soon join the bank’s marketplace, which already features partnerships with the bill-negotiating service BillShark, and Lemonade, a real estate insurance provider. Radius customers can access BillShark and Lemonade through the bank’s mobile app thanks to an application programming interface.
By growing client offerings beyond checking and savings, the bank is embracing a marketplace approach popularized in Europe, where lenders play a larger role in customers’ financial wellness, Butler said.
“We’ve been traditionally deposit-focused, and a little bit on wealth management, but the idea is to set up the marketplace. … We’re telling our customers this is what Radius has arranged for you that could make your life better,” Butler said.Mike Butler, Radius’ president and CEO