Review: What Is Ferratum (formerly SweepBank)?

Ferratum - A Bank From Malta

SweepBank is now called Ferratum. It's the same bank with the same services and terms, just marketed under the Ferratum name instead of SweepBank.

Behind Ferratum is a financial institution registered in Malta. This public limited company is now officially known as Multitude Bank p.l.c (formerly 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 specialises in consumer lending. The bank markets everyday banking services, savings accounts, and credit directly under the Ferratum name today. Ferratum offers services in Finland, Latvia, and Germany.

Is Ferratum a Scam?

Online forums sometimes raise suspicions that Ferratum (formerly 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 That campaign is no longer active.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 Ferratum Work?

Ferratum (originally launched as SweepBank) is used with an app installed on your phone, where actions are performed by swiping — the origin of the original SweepBank name. Ferratum is a true mobile bank with no traditional branches. However, Ferratum promises that a real person will assist you if needed.

Ferratum Services

Ferratum's service offering is still simple.

Current Account

Ferratum 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 now earn up to 1.0% interest.

Savings

Ferratum enables small-scale saving, as both current and savings accounts now earn up to 1.0% interest. You can withdraw the money at any time, regardless of the interest. Although the rate is better than at traditional banks, 1.0% is still relatively low. Among others, Bank Norwegian offers a competitive rate on similar terms, but even that is no longer a sufficient level in the current economic climate.

Saving with Ferratum 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 are now up to 3%. The Ferratum 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 Ferratum.

Payment Card

Ferratum's 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 Ferratum on your phone. Ferratum supports Apple Pay but not Google Pay. Contactless payments are also possible by using Ferratum's own app to pay.

Virtual Credit Card

You can apply for a virtual credit card in the Ferratum app. The card no longer has an interest-free payment period — interest (17.50%) starts accruing as soon as you use the credit — and it carries a fixed monthly fee of €12. Therefore, you should 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 Ferratum's website. The credit limit is a maximum of 4,000 euros.

The application asks for information about your financial situation to assess creditworthiness. Undoubtedly, lending is Ferratum's main source of revenue, as the bank specialises in small loans.

Ferratum Deals

The Ferratum app includes a list of partner offers. It remains unclear whether the offers are intended for everyone or only for Ferratum customers. It appears the app lists publicly available deals, meaning these are ad slots sold within the app.

Fees

We reviewed Ferratum's surprisingly fair fees. 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 Ferratum Safe?

Multitude Bank (formerly Ferratum Bank), which operates Ferratum's banking services, is a regulated financial institution registered in Malta, and promises that customer funds are protected up to 100,000 euros by the deposit guarantee scheme.

Ferratum Experiences

Opening an Account

Back when it was known as SweepBank, the bank 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 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 Ferratum app. The response delay was long enough that we had already forgotten our message. The reply did eventually arrive.

Our Review of Ferratum

Ferratum (formerly SweepBank) 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. Ferratum promises to develop new services on customers' terms.

Ferratum 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 rate Ferratum a 3-star mobile bank. The app is well executed, but compared to competitors, the bank still offers few features.

Bottom Line

In our experience, Ferratum (SweepBank) is 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. Its offering remains somewhat limited compared to more established banks.