Coconut - business banking and accountancy is raising on Crowdcube

(Kenny Grant) #1

Another interesting fintech crowdfunding at the moment. They’re looking at combining accountancy services with a bank account for small business which auto-classifies expenses.


First off, I like the name. :coconut: It’s interesting and will follow this. It’s already overfunded. :eyes:


There was a £200k investment from 7 percent ventures which pushed it to overfunding, see comment.

There’s a lot of competition emerging in the SME current account space. RBS announced Mettel today, which is very similar and presumably incorporates FreeAgent ( aquired by RBS last year ). Mettel, like Coconut have also partnered with Paypay Solutions which is a MasterCard company.

Worth checking out the Discussions in the pitch, Sam ( Coconut CEO ) has left detailed responses to most of the queries.


Thanks. I didn’t know about Mettel. Did you pre-register?

I’ve been reading the discussion. Someone asked about the share price which I also would like to know but the person was asked why would he want to know? That got me confused. Doesn’t the share price matter?


I’ve not pre registered for Mettel.

There was a message which mentioned the share price but that was moderated. I’m guessing this happened because the quoted share price wasn’t accurate… I hope they revisit the discussion and post the share price, they should already know the price given Crowdcube include it in their due diligence email.

Edit - They’ve updated the share price discussion and have said they’ll “share exactly what the share price is before close.

(Harry) #6

I love the idea and think it’s super useful.

However, if they’re utilisi g API from the government, why can this not just be incorporated into an existing bank? Or into the Monzo/Starling marketplace as an add on?

I see that as a major risk to their business model.

(Rob N) #7

I’d agree! App looks good and it sounds like it’s useful now, but uncertain future if there are no more tax returns as they’ve been replaced by “Digital tax accounts, which the government hopes will offer taxpayers a complete picture of their tax position at any given time.”


If you mean Making Tax Digital then HMRC will start with VAT payments from April 2019 but to start with this will require third party software.

Additionally the HMRC APIs for this are still work in progress, a few of the key endpoints are still in beta.

I think the bigger risk is how Open Banking API ( when it matures ) will let existing accounting packages work with any current account to automate aspects of book keeping .

(Kenny Grant) #9

I think the interests of companies (less tax) will always be opposed to HMRC (more tax) so I don’t see accountants going away as an advice service. So accountants will always be useful, but this eliminates lots of the dull uninteresting accounting work that accountants currently overcharge for. That work will definitely go away one way or another. Not convinced hmrc will ever be slick enough for company taxes though. Personal tax yes sure, company tax is more complex and contingent on business details.

Re integration into an existing bank, absolutely, this can and will happen, but this is run by accountants so I think the bank side is less necessary to them, they might end up being an integration for Monzo too, and that would be ok. I suspect offering financial advice is far more lucrative than being a business bank.