SweepBank - A Bank From Malta
Behind SweepBank is a financial institution registered in Malta. This public limited company is better known as Ferratum Bank p.l.c, which is part of the international Multitude Group. The group has over 2 million customers in more than 20 countries. Despite complex corporate arrangements, Ferratum’s roots trace back to Finland.
Ferratum Bank, behind SweepBank, specialises in consumer lending. The bank now markets everyday banking services, savings accounts, and credit under the SweepBank name. At launch, SweepBank offers services in Finland and Latvia, and will soon also offer services in Germany.
Is SweepBank a Scam?
Online forums sometimes raise suspicions that SweepBank is a scam. The doubt may have started from the bank’s promise to pay 20 euros to new customers. The bank paid us the bonus as promised, and we did not observe any suspicious activity in its operations. In our view, it was just a standard marketing tactic to reach new potential customers. That campaign is no longer active.
How Does SweepBank Work?
As the name suggests, you use SweepBank with an app installed on your phone, where actions are performed by swiping (English: sweep). SweepBank is a true mobile bank with no traditional branches. However, SweepBank promises that a real person will assist you if needed.
SweepBank Services
The SweepBank service offering is still simple.
Current Account
SweepBank offers a current account for everyday money management, which, in our experience, comes with a Maltese IBAN. You can transfer money to the account via a standard bank-to-bank transfer or through the mobile app using a payment card. Adding money to the account incurs no fees for the account holder. Funds in the current account earn 0,2per centnt interest.
Savings
SweepBank enables small-scale saving, as both current and savings accounts earn 0 per cent interest. You can withdraw the money at any time, regardless of the interest. Although the rate is better than at traditional banks, 0,20 per cent is still low. Among others, Bank Norwegian offers 1,05 per cent interest on similar terms, but even that is no longer a sufficient level in the current economic climate.
Saving with SweepBank is also possible via fixed-term deposits, where you deposit a set amount for an agreed period. The amount, plus interest, is repaid on the maturity date. Fixed-term deposit rates start from 0,4per centnt. The SweepBank app shows the exact annual rate when you create a fixed-term deposit. Unfortunately, you cannot check the rate in advance if you have not yet transferred funds to SweepBank.
Payment Card
The SweepBank current account includes a virtual debit card. According to the app, a physical card will be released later. You can use the virtual card immediately after opening the account. You can add the card details to, for example, the Curve app, allowing you to use SweepBank on your phone. SweepBank supports Apple Pay but not Google Pay. Contactless payments are also possible by using the SweepBank app to pay.
Virtual Credit Card
You can apply for a virtual credit card in the SweepBank app.. Purchases on the card get up to 60 days of interest-free payment time, after which any unpaid amount moves onto the credit balance. The card has no monthly fee, but the interest rate is high. Therefore, you should always pay the bill by the due date and use the credit only if there are no cheaper alternatives.
The credit card does not offer groundbreaking features, but applying is easy. Because it is a virtual credit card, you can start using it within minutes of approval. You can also check your creditworthiness in advance on the SweepBank website. The credit limit is a maximum of 8,000 euros.
The application asks for information about your financial situation to assess creditworthiness. Undoubtedly, lending is SweepBank’s main source of revenue, as Ferratum Bank specialises in small loans.
SweepBank Deals
The SweepBank app includes a list of partner offers called SweepBank Deals. It remains unclear whether the offers are intended for everyone or only for SweepBank customers. It appears the app lists publicly available deals, meaning these are ad slots sold within the app..
Fees
We reviewed SweepBank’s surprisingly fair fees. The price list included with the Terms and Conditions is also very clear. Bank accounts and the linked card are truly free of charge. You can also make 4 ATM withdrawals per month without service fees. Costs mainly arise from card replacement or ordering a paper statement.
Is SweepBank Safe?
Ferratum Bank behind SweepBank is a regulated financial institution registered in Malta, which promises that customer funds are protected up to 100,000 euros by the deposit guarantee scheme.
SweepBank Experiences
Opening an Account
SweepBank advertised that new customers receive 20 euros in cash when opening an account. The promise held, as we opened an account and received the promised money immediately.
Opening the account happened by installing the SweepBank app on the phone from the app store. The app was well-designed and easy to use. Opening the account in total took only about 10 minutes. During the process, basic details were requested, and identification took place using another bank’s credentials. After that, the account and its linked virtual card were ready for immediate use. Because opening an account does not automatically include a credit check, any adult should be able to open one. Getting the virtual credit card, however, has more requirements related to your financial situation.
Customer Service
We sent a few questions to customer service via the SweepBank app. The response delay was long enough that we had already forgotten our message. The reply did eventually arrive.
Our Review of SweepBank
SweepBank is still a mobile bank in development. The bank does not offer revolutionary new services, but it handles the basics well. A plus is the interest paid on the current account and the option for fixed-term deposits. SweepBank promises to develop new services on customers’ terms.
SweepBank works as a day-to-day current account, as you can manage it through a very well-made app. The small amount of interest paid on your money is a nice bonus.
We rated SweepBank a 3-star mobile bank. The app is well executed, but compared to competitors, the bank still offers few features.
Questions and Answers
- What is SweepBank?
- SweepBank is a mobile bank operated by Ferratum Bank, which is registered in Malta.
- Is the SweepBank card free?
- The SweepBank account, payment card, and other basic services are free of charge.
- How much interest does SweepBank pay on deposits?
- The current account earns 0.2% interest. Fixed-term deposit rates vary by amount and term.
- How does SweepBank’s virtual debit card work?
- You can use the card for contactless payments through the SweepBank app. It can also be used via the Curve app.
- Does SweepBank offer a credit card?
- You can apply for a virtual credit card in the SweepBank app. There is no monthly fee, and no interest is charged if you pay the bill by the due date.
Bottom Line
In our experience, SweepBank was a well-designed mobile banking app. Opening an account was easy, and the virtual payment card was available immediately. Most services are free, and the others are inexpensive. Because SweepBank is still new, it cannot compete on features, and its offering is somewhat limited.