Jiko Partners to Launch Banking App for Transgender Community

Jiko and Euphoria Launch Banking App for Transgender Community

Jiko, a fintech company specializing in short-term treasury bill investments utilizing customer deposits, has announced its inaugural banking-as-a-service (BaaS) partnership.

This collaboration is with Euphoria, a technology platform designed to support individuals navigating gender transition. Together, they are introducing a new banking application named Bliss.

Addressing Banking Access Challenges for Transgender Individuals

An estimated 2 to 6 million people in the United States identify as transgender. A significant portion, 34%, encounter difficulties due to discrepancies between their identification and their gender identity, hindering their access to standard banking services.

Traditional banking compliance procedures often fail to adequately address the unique circumstances faced by this population. Jiko, in conjunction with Euphoria, has tailored the “know your customer” (KYC) process for Bliss, enabling users to establish accounts using alternative verification methods.

Euphoria’s Perspective on Identification Barriers

“For transgender individuals, obtaining accurate official identification can be a substantial hurdle,” explained Robbi Katherine Anthony, founder and CEO of Euphoria, in correspondence with TechCrunch.

“Updating legal documents requires considerable time, financial resources, and, in certain instances, supportive legislation. The process of updating these documents can create opportunities for banks to scrutinize inconsistencies, potentially leading to account application denials,” Anthony added.

The Genesis of the Partnership

The connection between Euphoria and Jiko originated through a mutual investor, who facilitated an introduction between Euphoria’s CEO and Rocky Motwani, Jiko’s co-founder. This initial contact sparked the development of their collaborative venture.

Euphoria anticipates that building a similar platform with a conventional bank would have necessitated a 12 to 18-month implementation period. However, Jiko facilitated the launch of Bliss within a matter of months, as stated in the official press release.

Jiko’s Strategic Shift to B2B Services

This partnership reflects Jiko’s planned transition from direct-to-consumer services towards a business-to-business (B2B) model. The company operates on a flat monthly fee structure per account.

Customer funds within each account are invested in government-backed treasury bills, allowing account holders to utilize these funds immediately through debit card transactions.

The Safety and Efficiency of Jiko’s Approach

“Jiko’s core principle is to deliver a high level of safety, coupled with full spending capabilities, at the most competitive rate available,” stated Stephane Lintner, CEO and co-founder of Jiko, in an email to TechCrunch.

“Historically, treasury bills have consistently provided this optimal balance between risk and return,” Lintner explained.

Expanding Pipeline and Diverse Applications

While Euphoria represents Jiko’s first BaaS client, Lintner indicated a strong pipeline of potential partnerships. The company is currently engaged in discussions with remittance platforms serving the Latino community.

Furthermore, Jiko has observed increasing interest from both corporations and cryptocurrency firms seeking secure cash storage solutions.

Versatility of Jiko’s Core Product

“The strength of our fundamental product lies in its universal applicability,” Lintner noted.

“Both neobanks and community-focused applications primarily require card issuance and retail accounts. Conversely, large corporate treasury platforms, including those serving Fortune 500 companies, can leverage the same API to establish accounts for their clients and manage their daily liquidity,” Lintner concluded.