Loot

Loot Financial Services Ltd., operating as Loot, was a financial technology company established in 2014 by founder Ollie Purdue. The venture originated from Purdue's own experience as a law student at the University of the West of England, where he identified a gap in the market for banking services tailored to the needs of students and young people. He found traditional banking apps to be clunky and lacking in features that could help him manage his finances effectively, inspiring him to create a simpler solution.

The company's primary offering was a digital current account accessible through a mobile application, paired with a prepaid contactless Mastercard. Loot was not a licensed bank but operated under an e-money license through a partnership with Wirecard Card Solutions, regulated by the Financial Conduct Authority. This structure meant that customer funds were 'safeguarded' in a separate account rather than being lent out or invested, a key distinction from traditional banks. The platform was designed to help users, primarily those aged 16 to 25, track their spending in real-time, set personalized daily or weekly budgets, and create savings goals. Features included transaction categorization and a "budgeting circle" that visually represented spending against income. The service also offered fee-free foreign transactions using the Mastercard wholesale exchange rate.

Loot's business model focused on undercutting the operating costs of traditional banks and aimed to generate revenue through financial products like lending and foreign exchange services, rather than charging unnecessary fees. The company gained significant traction, attracting over 175,000 sign-ups by early 2019. This growth was supported by several funding rounds, including investments from prominent venture capital firms like Speedinvest, Global Founders Capital, and Portage. A major milestone occurred in 2018 and early 2019 when the Royal Bank of Scotland (RBS), through its digital banking arm Bó, invested a total of £5 million for a 25% stake in the company. However, after a deal for RBS to acquire the entire company fell through, Loot was unable to secure further funding and entered administration in May 2019.

Keywords: Ollie Purdue, digital banking, fintech, money management app, student banking, prepaid debit card, financial technology, budgeting tool, mobile banking, London startup, RBS, Bó, NatWest, e-money, financial services, personal finance, spending tracker, savings goals, challenger bank, Wirecard, startup failure