FinTech Finom Unlocks Returns on SMB Cash Reserves, Challenging Traditional Banking Models
European small and medium-sized businesses (SMBs) often leave significant capital uninvested, missing out on potential returns. Amsterdam-based Finom, a digital financial services platform, is aiming to change that with the launch of a new high-yield account offering 5% annual interest on business current account balances. This move comes as the fintech sector continues to innovate, seeking to address the underserved financial needs of Europe’s vital SMB sector. Finom currently serves over 200,000 business customers across Europe, providing a suite of financial tools including banking, invoicing, and AI-powered accounting.
The challenge for many SMBs is that funds earmarked for short- or medium-term operational needs often sit idle, generating no income. While larger corporations typically employ treasury teams to optimize cash management, smaller businesses often lack the resources or expertise to do so effectively. Finom estimates that billions of euros are effectively “parked” in business accounts across the continent, representing a significant opportunity cost for entrepreneurs. This new offering seeks to provide a simple, accessible solution, allowing businesses to earn a return on these funds without sacrificing liquidity.
A New Approach to Business Banking
Finom’s new “Zinskonto” (interest account) offers a 5% annual percentage yield (APY) on euro balances, a rate significantly higher than those typically offered by traditional banks. According to the European Central Bank (ECB), the current deposit facility rate stands at 2.5% as of March 7, 2026 . Finom argues that many banks pass only a fraction of this benefit – or none at all – onto their SMB clients.
“Most business banking offers treat unused liquidity as an afterthought,” says Andrew Petrov, CEO and co-founder of Finom. “Our interest account turns that around. It’s designed around how businesses actually operate: funds require to remain available, returns need to be predictable, and the whole thing needs to work without additional effort for the owners.” This philosophy underscores Finom’s broader mission to simplify financial management for entrepreneurs.
Flexibility and Accessibility
Unlike traditional fixed-term deposits or investment products, Finom’s Zinskonto offers daily interest accrual and automatic crediting, with no lock-in period. Businesses can access their funds instantly without penalty. There are no setup or ongoing fees for eligible users. This flexibility is a key differentiator, addressing a common pain point for SMBs that require immediate access to capital for day-to-day operations.
The initiative is powered by a partnership with Aksys Global Markets Europe, a fully licensed EU investment firm. Customer funds are invested in low-risk money market funds (MMFs) within a fully MiFID-regulated structure, ensuring a degree of security and transparency. “When European SMEs have liquidity on their account, it typically doesn’t yield anything,” explains Imad Assio, Executive Director at Aksys. “Through our partnership with Finom, we enable small businesses and self-employed individuals to put their working capital to work for them in a regulated, low-risk structure, simply and without specialized knowledge.”
A Limited-Time Offer and Long-Term Vision
The 5% interest rate is initially offered for the first five months, after which the rate will revert to approximately 1.75%. However, Finom emphasizes that the ongoing benefit lies in the account’s inherent flexibility and the ability to generate returns on otherwise idle funds. This approach reflects a broader trend in fintech, where companies are leveraging technology to offer more competitive and customer-centric financial products.
Finom’s move comes at a time of significant growth for the company. In June 2025, Finom secured €115 million in Series C funding, led by AVP (formerly AXA Venture Partners), with participation from Headline Growth, General Catalyst, Northzone, and Cogito Capital . This followed a $105 million growth funding round from General Catalyst in the preceding weeks. The company reported doubling its revenue in 2024 and aims to reach one million business customers by the end of 2026, although CEO Andrew Petrov acknowledges this target is aspirational.
The funding will be used to fuel European expansion and further develop Finom’s platform, which increasingly incorporates AI-enabled accounting features. The company’s ambition is to provide a comprehensive financial solution for SMBs, potentially reducing the need for traditional accountants.
Competition and Challenges
While Finom’s innovative approach is gaining traction, the European fintech landscape remains competitive. The company faces competition not only from established banks but too from other fintech players like Qonto, a French unicorn with approximately $700 million in funding. Finom’s total funding of roughly $346 million is significantly less than that of larger competitors like Monzo, N26, Revolut, and Wise, all of which have raised over $1 billion .
Finom believes its focus on SMBs and its integrated platform give it a competitive edge. The company’s strategy centers on attracting customers from legacy banks, which are often perceived as gradual-moving and inflexible. However, winning market share in a crowded fintech arena will require continued innovation and a strong focus on customer acquisition.
The success of Finom’s new interest account will likely depend on its ability to effectively communicate the benefits to SMBs and demonstrate the value of its integrated financial platform. As European businesses navigate a challenging economic environment, solutions that help them optimize cash flow and maximize returns will be in high demand.
Key Takeaways:
- Finom is offering a 5% annual interest rate on business current account balances, significantly higher than traditional bank rates.
- The new “Zinskonto” provides flexibility, with daily interest accrual and no lock-in periods.
- The initiative is backed by a partnership with Aksys Global Markets Europe and operates within a regulated financial framework.
- Finom’s move reflects a broader trend of fintech innovation aimed at serving the underserved SMB market.
Finom’s continued expansion and the evolution of its platform will be key areas to watch in the coming months. The company is scheduled to announce its Q1 2026 earnings on April 15, 2026, providing further insight into its growth trajectory. We encourage readers to share their thoughts on this development and its potential impact on the European SMB landscape in the comments below.