Updated 6.56am

A local company has launched what it described as a "neobank" that it promises will allow people to open online bank accounts "in minutes".

Speaking at the launch of a new online platform called Moneybase, Calamatta Cuschieri co-CEO Alan Cuschieri said the new mobile payments app would facilitate the easy opening of online accounts for Maltese and EU residents.

The new platform will allow users to send and receive money between 34 countries.  The company has invested €10 million in the new platform.

What is a neobank?

A neobank is an online-only financial institution that is similar to a bank but has limited services, which can sometimes translate to lower fees.

Moneybase does not having a banking licence and its terms and conditions make it clear that funds will not be covered by Malta's depositor compensation scheme, which insures funds up to €100,000 per user. 

Many people in Malta are already familiar with such platforms through the operation of global financial app Revolut, which last year said it had attracted 190,000 customers in the country. 

How does it work?

Users must download the Moneybase app then enter their phone number, email address and answer some questions including their employment status and whether they are a politically exposed person.

Then the user enters an ID document such as an ID card, passport or driving licence.

The process usually takes minutes. 

Moneybase users will have access to their own international account, coupled with the possibility of ordering either a physical or virtual Mastercard.

It can be used to send and receive payments, including your salary, the company promises.

Free and paid plans

The new platform will also give users access to over 20,000 investment opportunities, Cuschieri said.

Cuschieri promised a fully digital experience, and while the 'starter' plan is fee-free, it is offering a premium option later.

Attending the launch, finance minister Clyde Caruana heralded the investment made by Calamatta Cuschieri.