Today we speak with Sergio Cerro, CEO of Rebellion and Gin Gindre, Chief Operating Officer.
Founded in 2017 by Alex Sagrado and Sergio Cerro, Rebellion has been a pioneer in the Spanish neobank space. It was the first Spanish neo-bank to get an e-money license, to offer Google and Apple Pay, and more recently to offer a personal Spanish IBAN to each user, which is an important step in its first objective to be the main account for Gen Zs in Spain.
In addition, Rebellion users can also order a physical Mastercard and receive it in a few days, with which they can buy in any shop on and offline. Finally, users also enjoy instant transfers (P2P) within the Rebellion community.
Mainly funded by Gala Capital, they have gone through 2 rounds of investments to raise close to 4 million euros.
What was the idea that led to the creation of Rebellion?
We identified an opportunity to enter the market by focusing on generation Z (14-24 years old). It is a part of the population neglected by the banking sector, and which is demanding an alternative to traditional banking. They are on budgets marked by family pocket money, scholarships or first payrolls, and have a very different view of how banking services should be offered. What they value most is immediacy, transparency, communicating via chat, feeling connected with a brand, and of course, enjoying financial advantages. The fact that these users can become operational on Rebellion in less than 5 minutes from their home is a value proposition in itself.
Are children under the age of 18 allowed to open an account alone at home?
No, a child under the age of 18 has to go through our registration process and then send a link for approval to their legal guardian. The guardian must also pass our registration process and confirm their approval so that the child can start operating with Rebellion.
What is your opinion on giving 14-year-olds access to prepaid cards?
If they have the approval of their legal guardians, we think it's a positive thing. The tutor can be given more control (compared to simply giving the child cash) and the teen can learn to better manage their budget.
Is it difficult to gain the trust of legal guardians (older generations)?
Generation Z is much more open to new ways of consuming products and services, not just banking, but of any kind. In the case of older generations we see that there is more resistance, so we are working on earning their trust. The truth is that our users' accounts are segregated, which means that we can't invest their money like traditional banks do. That money is our users' money no matter what.
Some neobanks are getting ready to get banking licenses. Is that something you are considering?
As we discussed earlier, we have an e-money license, and we were the first Spanish neobank to obtain it. There are few neobanks globally that have obtained a banking license. In the future we do not rule it out, but our focus now is on offering Gen Zs in Spain a banking experience that fits their needs and preferences, something we can do with our current license.
What is the difference between the e-money license and the bank license?
There are many differences but the main one is that bank licenses allows to offer more sophisticated and complex financial products, such as loans and mortgages.
Could you tell us a little more about your business model? We see that Rebellion is a free service for now, is this true?
Yes, Rebellion is a free service and offers many financial advantages to its users (free withdrawals from any ATM, no added fees when buying in foreign currencies, free transfers, zero maintenance costs,... ). There are some limits in place and if users exceed them there are small fees to pay.
Next year we do aim to start monetizing by offering our users a series of advantages in the form of discounts, access to exclusive events and more, which we will be able to offer thanks to partnerships that we are closing with the most relevant brands for the Gen Z in Spain.
