Finch is a US-based fintech startup that aims to integrate the benefits of investing with the flexibility of checking into an all-in-one account.
This week it has secured $1.8M in seed funding. The goal is now to launch its platform and help transform how people manage their money.
The funding round was led by Mendoza Ventures, with additional participation from Barclays, Techstars Investors, and Draper Frontier.
Finch wants to become a unique investment tool and empower the Millennial generation to make their money work for them. The key is to let the customer earn investment returns by automatically investing their balance into “a portfolio designed to match their unique risk profile.”
With that, Finch is also enabling customers with instant access to their money when they need it, even when the money is invested.
“I always felt I could have done more with my money – but didn’t and ended up holding my balance in cash. Having discovered that in the US, a staggering three in five Millennials currently do not invest at all, I realized I was not alone. Compounding this with the growing financial debt among Millennials today, with 62% living paycheck to paycheck, opened my eyes to how significant the issue is,” said Neel Ganu, founder of Finch.
“Many of our customers express that investing is too complex, while others feel they have very little financial flexibility to think about investing and other financial opportunities. But by keeping their money idle in a traditional checking account, they could be missing out on up to 50% of their wealth every ten years,” Ganu added.
Ganu acknowledges that Acorns brought roundups, Stash brought $5 dollar investments, and Robinhood brought commission-free investing. Instead of viewing these fintechs as the competition, Ganu says these start-ups sit adjacent to Finch.
Ganu says Finch will generate money in three ways:
- Interchange fees via a debit card
- Subscription-based fee, depending on the account a user takes out.
- A spin on the traditional asset management fee
“The Finch team is not only disrupting the checking account to become truly customer-centric; they are transforming the fintech industry as the first player in the market that is enabling instant liquidity on investments. No doubt a game-changer,” said Senofer Mendoza, General Partner, Mendoza Ventures.
“By enabling customers the ability to earn investment returns, from day one, with what they have today, they are closing the wealth gap and financially empowering a generation. We are so excited to support this team in their mission of financial empowerment.”