French fintech Lydia launches digital banking app Sumeria

Company Overview:
- French fintech start-up Lydia.
- Originally launched in 2013 as a P2P payments app.
- Currently serves 8 million users in France, Spain, and Germany.
New Developments:
- Lydia is splitting its app into two separate services.
- Launching a new digital banking brand called Sumeria.
- Lydia Accounts will focus solely on peer-to-peer (P2P) payments.
- The original Lydia app will be rebranded as Sumeria.
Investment and Growth Plans:
- Planning to invest over €100 million in Sumeria.
- Hiring 400 people over the next three years.
- Sumeria aims to serve 5 million customers by 2027.
- Seeking a credit institution licence from the French Prudential Supervision and Resolution Authority.
Product Offerings:
- Lydia Accounts app will handle P2P payments exclusively.
- Sumeria will include advanced features like stock trading, savings accounts, and loans.
- Sumeria will offer an online account with 4% interest on cash balances for the first three months.
Rationale for Changes:
- The split is due to the “all-in-one product” approach diluting the “magical experience” of P2P services.
- Aimed to maintain a clean and relevant design for both services.