The key leaders in Bank of America’s sprawling tech and ops division, which has a $14 billion annual budget and 95,000 employees

Bank of America power players Tony Kerrison, Cathy Bessant, and Sumeet Chabria cut out on a red background.
From left: Tony Kerrison, Cathy Bessant, and Sumeet Chabria. Bank of America.

  • Cathy Bessant is the chief operations and technology officer at Bank of America.
  • She oversees a $14 billion annual tech budget and 95,000 employees globally.
  • These are the seven key leaders who report directly to Bessant.
  • See more stories on Insider’s business page.

With a $14 billion annual tech budget and 95,000 employees globally, Bank of America’s technology and operations division is a key portion of the second-biggest US bank by assets.

Cathy Bessant, the bank’s chief operations and technology officer, has led the group for more than a decade, including its reorganization.

Insider identified the seven key executives within Bessant’s inner circle. Their responsibilities span tech and ops duties within consumer and wealth management to the overall cybersecurity of the firm.

“One of the key ingredients to making it work is that they are integrated with each other,” Bessant told Insider of her leadership team of seven. “A technology and operations organization doesn’t have the luxury of being able to be an island.”

Subscribers can see the full list of Bessant’s key deputies here:

Meet the 7 people reporting to Bank of America’s top tech exec Cathy Bessant who help oversee a $14 billion annual budget and 95,000 employees

Read the original article on Business Insider

Robinhood promises to fix ‘the issues’ that outraged customers when it restricted trading in meme stocks

Robinhood logo stocks investing
  • Robinhood CEO Vlad Tenev acknowledged the company angered many customers after it blocked them from trading GameStop and other red-hot stocks.
  • On Saturday, Tenev promised to learn from past mistakes and “ensure they never happen again.”
  • Saturday’s roadshow event comes just days ahead of the commission-free trading app’s hotly anticipated IPO.
  • See more stories on Insider’s business page.

Robinhood knows it angered many retail investors earlier this year when the trading app halted buying of GameStop, AMC, and other meme stocks amid an epic rally – and the company has pledged to earn back the trust of frustrated customers.

In a roadshow event Saturday ahead of its planned initial public offering, Robinhood cofounder and CEO Vlad Tenev said the company is “focusing on is making sure we fix the issues that led to customers being upset.”

The app’s growth has been “amazing,” he said, but “it has led to some real challenges.”

“We’re committed to learn from these experiences and help ensure they never happen again,” he said.

Robinhood drew customers’ ire when it halted the buying of GameStop and other meme stocks during a Reddit-fueled frenzy in January, only allowing users to sell. Outraged traders flooded the app with one-star reviews on Google, lowering its user rating. Many said they would stop using the app in protest, and Redditors on the investing thread Wall Street Bets called for legal action.

Despite the blowback and ensuing regulatory scrutiny, Robinhood, which was launched in 2013 with the mission to “democratize finance for all,” saw a huge jump in new users in the first quarter, according to its S-1 filing. Monthly active users jumped by 6 million in the first three months of 2021 to 17.7 million from 11.7 million at the end of December, an increase of 51%.

The company on Saturday also outlined its plans to continue to grow revenue if US regulators ban payment for order flow, at the heart of its business model. Payment for order flow, or PFOF, is the practice of a brokerage receiving payment from a market maker to send customers’ shares to it. PFOF has drawn criticism from investor advocates who say it encourages brokerages to maximize their revenue at the expense of customers.

The company’s chief financial officer, Jason Warnick, defended PFOF as “a better deal for our customers versus the old commission structure.”

“That said, as we continue to add products and features to our platform we anticipate we will expand the sources of revenues we generate for the company,” he added.

Robinhood said it plans to expand its securities lending business, invest more into Robinhood Gold, its subscription service, and expand internationally. It also said it’s all-in on crypto.

Robinhood’s IPO, planned for Thursday, is among the most highly anticipated of the year. The company will be offering a third of its shares directly to customers through its app, a far greater amount than is usually offered to individual investors during most IPOs. Its livestreamed roadshow was also unique — open to retail investors in what is an event usually reserved for institutional investors.

The Menlo Park, California-based firm in its regulatory filing said it is aiming to raise as much as $2.3 billion in its IPO. It is offering 55 million shares priced at $38-$42, putting its market valuation at $35 billion at the top range.

Read the original article on Business Insider

Check out 9 pitch decks that fintechs looking to disrupt investing, banking, and credit scores used to raise millions

dollar bills money
Check out these pitch decks for examples of fintech founders sold their vision.

Fintech VC funding hit a fresh quarterly record of $22.8 billion in the first three months of 2021, according to CB Insights data. While mega-rounds helped propel overall funding, new cash was spread across 614 deals.

Insider has been tracking the next wave of hot new startups that are blending finance and tech.

Check out these pitch decks to see how fintech founders are selling their vision and nabbing big bucks in the process. You’ll see new financial tech geared at freelancers, fresh twists on digital banking, and innovation aimed at streamlining customer onboarding.


Blockchain for private-markets investing

Carlos Domingo is cofounder and CEO of Securitize.
Carlos Domingo is cofounder and CEO of Securitize.

Securitize, founded in 2017 by the tech industry veterans Carlos Domingo and Jamie Finn, is bringing blockchain technology to private-markets investing. The company raised $48 million in Series B funding on June 21 from investors including Morgan Stanley and Blockchain Capital.

Securitize helps companies crowdfund capital from individual and institutional investors by issuing their shares in the form of blockchain tokens that allow for more efficient settlement, record keeping, and compliance processes. Morgan Stanley’s Tactical Value fund, which invests in private companies, made its first blockchain-technology investment when it coled the Series B, Securitize CEO Carlos Domingo told Insider.

Here’s the 11-page pitch deck a blockchain startup looking to revolutionize private-markets investing used to nab $48 million from investors like Morgan Stanley


E-commerce focused business banking

Headshot of Novo cofounders Michael Rangel (CEO) and Tyler McIntyre (CTO)
Michael Rangel, cofounder and CEO, and Tyler McIntyre, cofounder and CTO of Novo.

Business banking is a hot market in fintech. And it seems investors can’t get enough.

Novo, the digital banking fintech aimed at small e-commerce businesses, raised a $40.7 million Series A led by Valar Ventures in June. Since its launch in 2018, Novo has signed up 100,000 small businesses. Beyond bank accounts, it offers expense management, a corporate card, and integrates with e-commerce infrastructure players like Shopify, Stripe, and Wise.

Founded in 2018, Novo was based in New York City, but has since moved its headquarters to Miami.

Here’s the 12-page pitch deck e-commerce banking startup Novo used to raise its $40 million Series A


Blockchain-based credit score tech

John Sun, Anna Fridman, and Adam Jiwan are the cofounders of fintech startup Spring Labs.
John Sun, Anna Fridman, and Adam Jiwan are the cofounders of fintech startup Spring Labs.

A blockchain-based fintech startup that is aiming to disrupt the traditional model of evaluating peoples’ creditworthiness recently raised $30 million in a Series B funding led by credit reporting giant TransUnion.

Four-year-old Spring Labs aims to create a private, secure data-sharing model to help credit agencies better predict the creditworthiness of people who are not in the traditional credit bureau system. The founding team of three fintech veterans met as early employees of lending startup Avant.

Existing investors GreatPoint Ventures and August Capital also joined in on the most recent round. So far Spring Labs has raised $53 million from institutional rounds.

TransUnion, a publicly-traded company with a $20 billion-plus market cap, is one of the three largest consumer credit agencies in the US. After 18 months of dialogue and six months of due diligence, TransAmerica and Spring Labs inked a deal, Spring Labs CEO and cofounder Adam Jiwan told Insider.

Here’s the 10-page pitch deck blockchain-based fintech Spring Labs used to snag $30 million from investors including credit reporting giant TransUnion


Digital banking for freelancers

freelance freelancer remote working remotely typing

Lance is a new digital bank hoping to simplify the life of those workers by offering what it calls an “active” approach to business banking.

“We found that every time we sat down with the existing tools and resources of our accountants and QuickBooks and spreadsheets, we just ended up getting tangled up in the whole experience of it,” Lance cofounder and CEO Oona Rokyta told Insider.

Lance offers subaccounts for personal salaries, withholdings, and savings to which freelancers can automatically allocate funds according to custom preset levels. It also offers an expense balance that’s connected to automated tax withholdings.

In May, Lance announced the closing of a $2.8 million seed round that saw participation from Barclays, BDMI, Great Oaks Capital, Imagination Capital, Techstars, DFJ Frontier, and others.

Here’s the 21-page pitch deck Lance, a digital bank for freelancers, used to raise a $2.8 million seed round from investors including Barclays


Digital tools for independent financial advisors

Jason Wenk, Altruist
Jason Wenk, founder and CEO of Altruist

Jason Wenk started his career at Morgan Stanley in investment research over 20 years ago. Now, he’s running a company that is hoping to broaden access to financial advice for less-wealthy individuals.

The startup raised $50 million in Series B funding led by Insight Partners with participation from investors Vanguard and Venrock. The round brings the Los Angeles-based startup’s total funding to just under $67 million.

Founded in 2018, Altruist is a digital brokerage built for independent financial advisors, intended to be an “all-in-one” platform that unites custodial functions, portfolio accounting, and a client-facing portal. It allows advisors to open accounts, invest, build models, report, trade (including fractional shares), and bill clients through an interface that can advisors time by eliminating mundane operational tasks.

Altruist aims to make personalized financial advice less expensive, more efficient, and more inclusive through the platform, which is designed for registered investment advisors (RIAs), a growing segment of the wealth management industry.

Here’s the pitch deck for Altruist, a wealth tech challenging custodians Fidelity and Charles Schwab, that raised $50 million from Vanguard and Insight


Payments and operations support

HoneyBook Oz Naama Dror co founders
HoneyBook cofounders Dror Shimoni, Oz Alon, and Naama Alon.

While countless small businesses have been harmed by the pandemic, self-employment and entrepreneurship have found ways to blossom as Americans started new ventures.

Half of the US population may be freelance by 2027, according to a study commissioned by remote-work hiring platform Upwork. HoneyBook, a fintech startup that provides payment and operations support for freelancers, in May raised $155 million in funding and achieved unicorn status with its $1 billion-plus valuation.

Durable Capital Partners led the Series D funding with other new investors including renowned hedge fund Tiger Global, Battery Ventures, Zeev Ventures, and 01 Advisors. Citi Ventures, Citigroup’s startup investment arm that also backs fintech robo-advisor Betterment, participated as an existing investor in the round alongside Norwest Venture partners. The latest round brings the company’s fundraising total to $227 million to date.

Here’s the 21-page pitch deck a Citi-backed fintech for freelancers used to raise $155 million from investors like hedge fund Tiger Global


Fraud prevention for lenders and insurers

woman shopping online using laptop

Onboarding new customers with ease is key for any financial institution or retailer. The more friction you add, the more likely consumers are to abandon the entire process.

But preventing fraud is also a priority, and that’s where Neuro-ID comes in. The startup analyzes what it calls “digital body language,” or, the way users scroll, type, and tap. Using that data, Neuro-ID can identify fraudulent users before they create an account. It’s built for banks, lenders, insurers, and e-commerce players.

“The train has left the station for digital transformation, but there’s a massive opportunity to try to replicate all those communications that we used to have when we did business in-person, all those tells that we would get verbally and non-verbally on whether or not someone was trustworthy,” Neuro-ID CEO Jack Alton told Insider.

Founded in 2014, the startup’s pitch is twofold: Neuro-ID can save companies money by identifying fraud early, and help increase user conversion by making the onboarding process more seamless.

In December Neuro-ID closed a $7 million Series A, co-led by Fin VC and TTV Capital, with participation from Canapi Ventures. With 30 employees, Neuro-ID is using the fresh funding to grow its team and create additional tools to be more self-serving for customers.

Here’s the 11-slide pitch deck a startup that analyzes consumers’ digital behavior to fight fraud used to raise a $7 million Series A


AI-powered tools to spot phony online reviews

Fakespot CEO
Saoud Khalifah, founder and CEO of Fakespot.

Marketplaces like Amazon and eBay host millions of third-party sellers, and their algorithms will often boost items in search based on consumer sentiment, which is largely based on reviews. But many third-party sellers use fake reviews often bought from click farms to boost their items, some of which are counterfeit or misrepresented to consumers.

That’s where Fakespot comes in. With its Chrome extension, it warns users of sellers using potentially fake reviews to boost sales and can identify fraudulent sellers. Fakespot is currently compatible with Amazon, BestBuy, eBay, Sephora, Steam, and Walmart.

“There are promotional reviews written by humans and bot-generated reviews written by robots or review farms,” Fakespot founder and CEO Saoud Khalifah told Insider. “Our AI system has been built to detect both categories with very high accuracy.”

Fakespot’s AI learns via reviews data available on marketplace websites, and uses natural-language processing to identify if reviews are genuine. Fakespot also looks at things like whether the number of positive reviews are plausible given how long a seller has been active.

Fakespot, a startup that helps shoppers detect robot-generated reviews and phony sellers on Amazon and Shopify, used this pitch deck to nab a $4 million Series A


New twists on digital banking

Zach Bruhnke, HMBradley
Zach Bruhnke, cofounder and CEO of HMBradley

Consumers are getting used to the idea of branch-less banking, a trend that startup digital-only banks like Chime, N26, and Varo have benefited from.

The majority of these fintechs target those who are underbanked, and rely on usage of their debit cards to make money off interchange. But fellow startup HMBradley has a different business model.

“Our thesis going in was that we don’t swipe our debit cards all that often, and we don’t think the customer base that we’re focusing on does either,” Zach Bruhnke, cofounder and CEO of HMBradley, told Insider. “A lot of our customer base uses credit cards on a daily basis.”

Instead, the startup is aiming to build clientele with stable deposits. As a result, the bank is offering interest-rate tiers depending on how much a customer saves of their direct deposit.

Notably, the rate tiers are dependent on the percentage of savings, not the net amount.

“We’ll pay you more when you save more of what comes in,” Bruhnke said. “We didn’t want to segment customers by how much money they had. So it was always going to be about a percentage of income. That was really important to us.”

Check out the 14-page pitch deck fintech HMBradley, a neobank offering interest rates as high as 3%, used to raise an $18.25 million Series A

Read the original article on Business Insider

Goldman Sachs is transforming under CEO David Solomon

Goldman Sachs CEO David Solomon
Goldman Sachs CEO David Solomon.

Goldman Sachs is transforming under CEO David Solomon.

The Wall Street bank has taken steps involving transparency and inclusion to change up its culture. After its first-ever investor day in early 2020, the firm is executing on targets including multi-year cost-cutting plans. And it’s making big pushes into wealth management and consumer banking.

On Tuesday, the firm’s second-quarter 2021 earnings results topped expectations, with the bank reporting its second-highest net revenues on record. Its investment bank raked in more than $3.6 billion in revenue.

But the bank’s top ranks have also seen turnover this year, shedding execs within its management committee and partnership.

At the junior level, some young bankers are frustrated about not yet receiving base salary raises even as some bank competitors have raised pay.

Here’s a rundown of the must-know news at Goldman, including the latest hires and exits, as well as deep dives on its Marcus consumer bank and wealth-management push.


Who are the top leaders at Goldman?

Goldman Sachs org chart 2x1

Goldman in September shuffled its setup, creating a new standalone consumer division that includes its Marcus lending unit as well as its wealth-management and private-banking businesses.

Strategy chief Stephanie Cohen and Tucker York, the head of the private-wealth business, were tapped to colead the new consumer and wealth management division and the changes went into effect on Jan. 1.

The new setup matches the way Goldman reports financial results, a change the firm made in 2019 to better align with how Solomon wanted investors to think about the firm. Goldman now has four divisions: consumer and wealth management, asset management, investment banking, and global markets.

Read more:


Junior bankers in focus

wall street trader sad
Junior bankers have vented their frustrations to Goldman Sachs executives in recent months.

Goldman Sachs juniors vented this spring about 100-hour work-weeks.

So far, they’ve yet to benefit from it in the way of raises or bonuses, though Solomon hinted on the firm’s second-quarter earnings call that an update to their compensation policy might come in August.

The bank has been looking to hire reinforcements and fast-track tech initiatives to streamline work.

Read more:

The lastest news on Goldman’s Marcus

Marcus Goldman Sachs
Marcus offers savings and credit products online and through its app.

Goldman Sachs has built its consumer-banking arm into a $1 billion business over the past five years.

But it’s seen a wave of departures including the exits of top Marcus bosses Omer Ismail and David Stark. And JPMorgan has poached the head of product at Marcus to join the bank’s digital and product leadership team for consumer and community banking. Goldman has also brought in new hires, including Peeyush Nahar, an executive at Uber, to head the bank’s consumer business.

Insiders explained how Goldman Sachs’ hard-charging culture had contributed to exhaustion and high turnover within Marcus, and a Goldman spokesperson told us that the firm is eyeing beefing up the ranks by hiring some 200 to 300 new engineers.

Read more:


Goldman’s wealth-management push

Meena Flynn and John Mallory of Goldman Sachs
Meena Flynn and John Mallory co-head the private wealth business at Goldman Sachs.

Goldman, a firm synonymous with enormous wealth, has in recent years tried to reshape itself as a bank that can count someone with just $1,000 to invest as a client just as it has long done business with large companies and the very wealthy.

It launched Marcus Invest, a robo-advisor with a $1,000 minimum, earlier this year. And it has reorganized how its wealth businesses are situated entirely, creating a new internal consumer and wealth management division that went into effect at the start of this year. Goldman has some 800 advisors within private wealth globally.


Goldman’s dealmakers

When Goldman announced its latest class of partners, one group was particularly well-represented on the list. Seven of the 19 investment bankers elevated to partner status came from the bank’s powerhouse technology, media, and telecommunications group.

The group has also seen some shakeups in recent months. Goldman Sachs veteran Gregg Lemkau, co-head of the firm’s investment banking division since 2017 and a member of Goldman’s management committee, left at the end of 2020. Instacart has tapped Nick Giovanni, Goldman Sachs’ head of the global technology, media and telecom group, to be its CFO. And in September, Goldman Sachs named new leadership in its M&A group.

Goldman has also been riding the SPAC boom, which went into overdrive in the first quarter. It ranked No. 2 among banks in terms of SPAC IPOs year-to-date by mid-March.

Read more:

Read the original article on Business Insider

7 pitch decks that fintechs looking to disrupt wealth, banking, and credit scores used to raise millions

dollar bills money
Check out these pitch decks for examples of fintech founders sold their vision.

Fintech VC funding hit a fresh quarterly record of $22.8 billion in the first three months of 2021, according to CB Insights data. While mega-rounds helped propel overall funding, new cash was spread across 614 deals.

Insider has been tracking the next wave of hot new startups that are blending finance and tech.

Check out these pitch decks to see how fintech founders are selling their vision and nabbing big bucks in the process. You’ll see new financial tech geared at freelancers, fresh twists on digital banking, and innovation aimed at streamlining customer onboarding.


Blockchain-based credit score tech

John Sun, Anna Fridman, and Adam Jiwan are the cofounders of fintech startup Spring Labs.
John Sun, Anna Fridman, and Adam Jiwan are the cofounders of fintech startup Spring Labs.

A blockchain-based fintech startup that is aiming to disrupt the traditional model of evaluating peoples’ creditworthiness recently raised $30 million in a Series B funding led by credit reporting giant TransUnion.

Four-year-old Spring Labs aims to create a private, secure data-sharing model to help credit agencies better predict the creditworthiness of people who are not in the traditional credit bureau system. The founding team of three fintech veterans met as early employees of lending startup Avant.

Existing investors GreatPoint Ventures and August Capital also joined in on the most recent round. So far Spring Labs has raised $53 million from institutional rounds.

TransUnion, a publicly-traded company with a $20 billion-plus market cap, is one of the three largest consumer credit agencies in the US. After 18 months of dialogue and six months of due diligence, TransAmerica and Spring Labs inked a deal, Spring Labs CEO and cofounder Adam Jiwan told Insider.

Here’s the 10-page pitch deck blockchain-based fintech Spring Labs used to snag $30 million from investors including credit reporting giant TransUnion


Digital banking for freelancers

freelance freelancer remote working remotely typing

Lance is a new digital bank hoping to simplify the life of those workers by offering what it calls an “active” approach to business banking.

“We found that every time we sat down with the existing tools and resources of our accountants and QuickBooks and spreadsheets, we just ended up getting tangled up in the whole experience of it,” Lance cofounder and CEO Oona Rokyta told Insider.

Lance offers subaccounts for personal salaries, withholdings, and savings to which freelancers can automatically allocate funds according to custom preset levels. It also offers an expense balance that’s connected to automated tax withholdings.

In May, Lance announced the closing of a $2.8 million seed round that saw participation from Barclays, BDMI, Great Oaks Capital, Imagination Capital, Techstars, DFJ Frontier, and others.

Here’s the 21-page pitch deck Lance, a digital bank for freelancers, used to raise a $2.8 million seed round from investors including Barclays


Digital tools for independent financial advisors

Jason Wenk, Altruist
Jason Wenk, founder and CEO of Altruist

Jason Wenk started his career at Morgan Stanley in investment research over 20 years ago. Now, he’s running a company that is hoping to broaden access to financial advice for less-wealthy individuals.

The startup raised $50 million in Series B funding led by Insight Partners with participation from investors Vanguard and Venrock. The round brings the Los Angeles-based startup’s total funding to just under $67 million.

Founded in 2018, Altruist is a digital brokerage built for independent financial advisors, intended to be an “all-in-one” platform that unites custodial functions, portfolio accounting, and a client-facing portal. It allows advisors to open accounts, invest, build models, report, trade (including fractional shares), and bill clients through an interface that can advisors time by eliminating mundane operational tasks.

Altruist aims to make personalized financial advice less expensive, more efficient, and more inclusive through the platform, which is designed for registered investment advisors (RIAs), a growing segment of the wealth management industry.

Here’s the pitch deck for Altruist, a wealth tech challenging custodians Fidelity and Charles Schwab, that raised $50 million from Vanguard and Insight


Payments and operations support

HoneyBook Oz Naama Dror co founders
HoneyBook cofounders Dror Shimoni, Oz Alon, and Naama Alon.

While countless small businesses have been harmed by the pandemic, self-employment and entrepreneurship have found ways to blossom as Americans started new ventures.

Half of the US population may be freelance by 2027, according to a study commissioned by remote-work hiring platform Upwork. HoneyBook, a fintech startup that provides payment and operations support for freelancers, in May raised $155 million in funding and achieved unicorn status with its $1 billion-plus valuation.

Durable Capital Partners led the Series D funding with other new investors including renowned hedge fund Tiger Global, Battery Ventures, Zeev Ventures, and 01 Advisors. Citi Ventures, Citigroup’s startup investment arm that also backs fintech robo-advisor Betterment, participated as an existing investor in the round alongside Norwest Venture partners. The latest round brings the company’s fundraising total to $227 million to date.

Here’s the 21-page pitch deck a Citi-backed fintech for freelancers used to raise $155 million from investors like hedge fund Tiger Global


Fraud prevention for lenders and insurers

woman shopping online using laptop

Onboarding new customers with ease is key for any financial institution or retailer. The more friction you add, the more likely consumers are to abandon the entire process.

But preventing fraud is also a priority, and that’s where Neuro-ID comes in. The startup analyzes what it calls “digital body language,” or, the way users scroll, type, and tap. Using that data, Neuro-ID can identify fraudulent users before they create an account. It’s built for banks, lenders, insurers, and e-commerce players.

“The train has left the station for digital transformation, but there’s a massive opportunity to try to replicate all those communications that we used to have when we did business in-person, all those tells that we would get verbally and non-verbally on whether or not someone was trustworthy,” Neuro-ID CEO Jack Alton told Insider.

Founded in 2014, the startup’s pitch is twofold: Neuro-ID can save companies money by identifying fraud early, and help increase user conversion by making the onboarding process more seamless.

In December Neuro-ID closed a $7 million Series A, co-led by Fin VC and TTV Capital, with participation from Canapi Ventures. With 30 employees, Neuro-ID is using the fresh funding to grow its team and create additional tools to be more self-serving for customers.

Here’s the 11-slide pitch deck a startup that analyzes consumers’ digital behavior to fight fraud used to raise a $7 million Series A


AI-powered tools to spot phony online reviews

Fakespot CEO
Saoud Khalifah, founder and CEO of Fakespot.

Marketplaces like Amazon and eBay host millions of third-party sellers, and their algorithms will often boost items in search based on consumer sentiment, which is largely based on reviews. But many third-party sellers use fake reviews often bought from click farms to boost their items, some of which are counterfeit or misrepresented to consumers.

That’s where Fakespot comes in. With its Chrome extension, it warns users of sellers using potentially fake reviews to boost sales and can identify fraudulent sellers. Fakespot is currently compatible with Amazon, BestBuy, eBay, Sephora, Steam, and Walmart.

“There are promotional reviews written by humans and bot-generated reviews written by robots or review farms,” Fakespot founder and CEO Saoud Khalifah told Insider. “Our AI system has been built to detect both categories with very high accuracy.”

Fakespot’s AI learns via reviews data available on marketplace websites, and uses natural-language processing to identify if reviews are genuine. Fakespot also looks at things like whether the number of positive reviews are plausible given how long a seller has been active.

Fakespot, a startup that helps shoppers detect robot-generated reviews and phony sellers on Amazon and Shopify, used this pitch deck to nab a $4 million Series A


New twists on digital banking

Zach Bruhnke, HMBradley
Zach Bruhnke, cofounder and CEO of HMBradley

Consumers are getting used to the idea of branch-less banking, a trend that startup digital-only banks like Chime, N26, and Varo have benefited from.

The majority of these fintechs target those who are underbanked, and rely on usage of their debit cards to make money off interchange. But fellow startup HMBradley has a different business model.

“Our thesis going in was that we don’t swipe our debit cards all that often, and we don’t think the customer base that we’re focusing on does either,” Zach Bruhnke, cofounder and CEO of HMBradley, told Insider. “A lot of our customer base uses credit cards on a daily basis.”

Instead, the startup is aiming to build clientele with stable deposits. As a result, the bank is offering interest-rate tiers depending on how much a customer saves of their direct deposit.

Notably, the rate tiers are dependent on the percentage of savings, not the net amount.

“We’ll pay you more when you save more of what comes in,” Bruhnke said. “We didn’t want to segment customers by how much money they had. So it was always going to be about a percentage of income. That was really important to us.”

Check out the 14-page pitch deck fintech HMBradley, a neobank offering interest rates as high as 3%, used to raise an $18.25 million Series A

Read the original article on Business Insider

Fintech startups in Europe raised $17 billion in 2021. See 14 of the pitch decks they used to land millions from VCs.

alexander and oliver kent braham
Marshmallow founders Alexander and Oliver Kent Braham raised $30 million earlier this year.

  • Fintech and insurance startups in Europe have raised $17 billion in a record year for investment.
  • Insider has reported extensively on both sectors as investor appetite soared.
  • These pitch decks reveal how 14 different startups pitched their visions and products to investors.
  • See more stories on Insider’s business page.

Financial services and insurance startups are the crown jewels of European tech right now.

A host of regulatory and market changes have meant that the sector in Europe has grown rapidly in recent years, bringing in higher round sizes, valuations, and bigger investors than ever. 2021 has already been a record year for the industries with a combined $17 billion being poured in by investors already.

Beyond the initial wave of payments disruptors and challenger banks, a set of nuanced solutions to complex consumer and business issues are emerging across the continent.

Both insurance tech and fintech have seen mega deals this year. Swedish buy now, pay later giant Klarna raised from SoftBank at a $45.6 billion valuation, cementing its status as Europe’s most valuable private company. Similarly, Germany’s Wefox hit a $3 billion valuation after raising the continent’s largest ever insurance tech round at $650 million.

Below are 14 pitch decks from fast-growing European tech startups in the fintech and insurance spaces.

Insurance tech

Jean Charles Samuelian Werve   Voyez Vous (Vinciane Lebrun)  0639
Jean Charles Samuelian Werve, Alan CEO, landed $223 million.

Insurance is having a real moment in Europe. In 2021, European insurance tech startups have already raised more than in the entirety of 2020 with $1.9 billion invested over 52 deals, per Pitchbook. Here are six notable raises from the past 12 months:

Fintech

Adriaan Ken 1
Mollie cofounder Adriaan Mol and CCO Ken Serdons raised $106 million this year.

Fintech has been on a growth tear in Europe for a number of years and has shown few signs of slowing down. Everything from anti-money laundering to cloud infrastructure for banking is covered below with a number of unicorn businesses sharing their secrets to investment success.

Like insurance, fintech funding in 2021 has broken past 2020’s total and has already surpassed 2019 – a record year for the sector in Europe – this year, per Dealroom data. Fintech startups drew €8.6 billion ($10.2 billion) last year but have already topped €12.7 billion in 2021.

Read the original article on Business Insider

How fintech headhunters are turning into investors

Hello readers,

Happy Saturday, and welcome to Insider Finance. Here’s a rundown of trending stories from the past week:

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Fintech headhunters are forgoing fees in lieu of equity in the red-hot startups they’re staffing up

Intersection Growth Partners

With talent, not capital, now the real scarce commodity due to labor shortages, founders have been happy to bring on investors with a direct pipeline to the best employees in the industry. One search firm invested more than $100 million in stablecoin issuer Circle.

“At many companies, and at companies like Circle, managerial leverage often matters more than capital leverage,” Dante Disparte, Circle’s chief strategy officer and head of global policy, told Insider.

Read the full story here.


JPMorgan is stepping up marketing for its wealth business and hired Robinhood’s former head of content for a new role

David Moss of JPMorgan stands in front of a brick wall wearing a suit jacket.
David Moss joined JPMorgan in June.

The bank has hired David Moss as head of content for US wealth management as part of an effort to attract new clients who are “curious about investing,” JPMorgan Wealth Management head of content and communications Jennifer Zuccarelli told employees on Tuesday in a memo that was viewed by Insider.

The move underlines how banks have gone all-in on content – newsletters, blogs, and podcasts – as marketing.

Keep reading here.


Goldman Sachs is using algos to help drum up new business for bankers as part of a bigger automation push

Akila Raman, Goldman Sachs
Akila Raman, chief operating officer, Goldman Sachs investment bank division

Akila Raman, chief operating officer of Goldman’s investment bank division, and Miruna Stratan, who leads the IBD engineering team, walked Insider through three use cases the bank is eyeing for additional automation.

Here’s the full rundown.


Centerview rainmaker Blair Effron says return to office is all about the ‘quality of the experience’ and that he doesn’t expect people to be punching a clock

Blair Effron, Centerview Partners
Blair Effron, Centerview Partners

Centerview Partners is back to a “primarily in-office experience,” co-founder and partner Blair Effron told Insider. It’s embracing the benefits of in-person work after reopening on June 14 while still allowing for some flexibility.

Here’s what else he said.


Fintechs are using remote work as a lure to poach people from Wall Street banks that are pushing a return to the office

Remote work

Many Wall Street workers are being called back into the office, with many banks expecting more “normal” in-office work schedules after Labor Day, if not sooner. That may be enough to prompt a job switch, and New York fintechs are waiting with open arms.

“It’s a huge opportunity,” Eric Glyman, cofounder and CEO of NYC-based Ramp, told Insider. Ramp has hired from major banks’ risk, partnerships, and legal divisions, Glyman said.

Keep reading here.


Other stories readers loved this week

Read the original article on Business Insider

Europe’s hottest fintech startups raised $17 billion in 2021. See 14 of the pitch decks they used to land millions from VCs

alexander and oliver kent braham
Marshmallow founders Alexander and Oliver Kent Braham raised $30 million earlier this year.

  • Fintech and insurance startups in Europe have raised $17 billion in a record year for investment.
  • Insider has reported extensively on both sectors as investor appetite soared.
  • These pitch decks reveal how 14 different startups pitched their visions and products to investors.
  • See more stories on Insider’s business page.

Financial services and insurance startups are the crown jewels of European tech right now.

A host of regulatory and market changes have meant that the sector in Europe has grown rapidly in recent years, bringing in higher round sizes, valuations, and bigger investors than ever. 2021 has already been a record year for the industries with a combined $17 billion being poured in by investors already.

Beyond the initial wave of payments disruptors and challenger banks, a set of nuanced solutions to complex consumer and business issues are emerging across the continent.

Both insurance tech and fintech have seen mega deals this year. Swedish buy now, pay later giant Klarna raised from SoftBank at a $45.6 billion valuation, cementing its status as Europe’s most valuable private company. Similarly, Germany’s Wefox hit a $3 billion valuation after raising the continent’s largest ever insurance tech round at $650 million.

Below are 14 pitch decks from fast-growing European tech startups in the fintech and insurance spaces.

Insurance tech

Jean Charles Samuelian Werve   Voyez Vous (Vinciane Lebrun)  0639
Jean Charles Samuelian Werve, Alan CEO, landed $223 million.

Insurance is having a real moment in Europe. In 2021, European insurance tech startups have already raised more than in the entirety of 2020 with $1.9 billion invested over 52 deals, per Pitchbook. Here are six notable raises from the past 12 months:

Fintech

Adriaan Ken 1
Mollie cofounder Adriaan Mol and CCO Ken Serdons raised $106 million this year.

Fintech has been on a growth tear in Europe for a number of years and has shown few signs of slowing down. Everything from anti-money laundering to cloud infrastructure for banking is covered below with a number of unicorn businesses sharing their secrets to investment success.

Like insurance, fintech funding in 2021 has broken past 2020’s total and has already surpassed 2019 – a record year for the sector in Europe – this year, per Dealroom data. Fintech startups drew €8.6 billion ($10.2 billion) last year but have already topped €12.7 billion in 2021.

Read the original article on Business Insider

Check out 7 pitch decks that fintechs looking to disrupt wealth, banking, and credit scores used to raise millions

dollar bills money
Check out these pitch decks for examples of fintech founders sold their vision.

Fintech VC funding hit a fresh quarterly record of $22.8 billion in the first three months of 2021, according to CB Insights data. While mega-rounds helped propel overall funding, new cash was spread across 614 deals.

Insider has been tracking the next wave of hot new startups that are blending finance and tech.

Check out these pitch decks to see how fintech founders are selling their vision and nabbing big bucks in the process. You’ll see new financial tech geared at freelancers, fresh twists on digital banking, and innovation aimed at streamlining customer onboarding.


Blockchain-based credit score tech

John Sun, Anna Fridman, and Adam Jiwan are the cofounders of fintech startup Spring Labs.
John Sun, Anna Fridman, and Adam Jiwan are the cofounders of fintech startup Spring Labs.

A blockchain-based fintech startup that is aiming to disrupt the traditional model of evaluating peoples’ creditworthiness recently raised $30 million in a Series B funding led by credit reporting giant TransUnion.

Four-year-old Spring Labs aims to create a private, secure data-sharing model to help credit agencies better predict the creditworthiness of people who are not in the traditional credit bureau system. The founding team of three fintech veterans met as early employees of lending startup Avant.

Existing investors GreatPoint Ventures and August Capital also joined in on the most recent round. So far Spring Labs has raised $53 million from institutional rounds.

TransUnion, a publicly-traded company with a $20 billion-plus market cap, is one of the three largest consumer credit agencies in the US. After 18 months of dialogue and six months of due diligence, TransAmerica and Spring Labs inked a deal, Spring Labs CEO and cofounder Adam Jiwan told Insider.

Here’s the 10-page pitch deck blockchain-based fintech Spring Labs used to snag $30 million from investors including credit reporting giant TransUnion


Digital banking for freelancers

freelance freelancer remote working remotely typing

Lance is a new digital bank hoping to simplify the life of those workers by offering what it calls an “active” approach to business banking.

“We found that every time we sat down with the existing tools and resources of our accountants and QuickBooks and spreadsheets, we just ended up getting tangled up in the whole experience of it,” Lance cofounder and CEO Oona Rokyta told Insider.

Lance offers subaccounts for personal salaries, withholdings, and savings to which freelancers can automatically allocate funds according to custom preset levels. It also offers an expense balance that’s connected to automated tax withholdings.

In May, Lance announced the closing of a $2.8 million seed round that saw participation from Barclays, BDMI, Great Oaks Capital, Imagination Capital, Techstars, DFJ Frontier, and others.

Here’s the 21-page pitch deck Lance, a digital bank for freelancers, used to raise a $2.8 million seed round from investors including Barclays


Digital tools for independent financial advisors

Jason Wenk, Altruist
Jason Wenk, founder and CEO of Altruist

Jason Wenk started his career at Morgan Stanley in investment research over 20 years ago. Now, he’s running a company that is hoping to broaden access to financial advice for less-wealthy individuals.

The startup raised $50 million in Series B funding led by Insight Partners with participation from investors Vanguard and Venrock. The round brings the Los Angeles-based startup’s total funding to just under $67 million.

Founded in 2018, Altruist is a digital brokerage built for independent financial advisors, intended to be an “all-in-one” platform that unites custodial functions, portfolio accounting, and a client-facing portal. It allows advisors to open accounts, invest, build models, report, trade (including fractional shares), and bill clients through an interface that can advisors time by eliminating mundane operational tasks.

Altruist aims to make personalized financial advice less expensive, more efficient, and more inclusive through the platform, which is designed for registered investment advisors (RIAs), a growing segment of the wealth management industry.

Here’s the pitch deck for Altruist, a wealth tech challenging custodians Fidelity and Charles Schwab, that raised $50 million from Vanguard and Insight


Payments and operations support

HoneyBook Oz Naama Dror co founders
HoneyBook cofounders Dror Shimoni, Oz Alon, and Naama Alon.

While countless small businesses have been harmed by the pandemic, self-employment and entrepreneurship have found ways to blossom as Americans started new ventures.

Half of the US population may be freelance by 2027, according to a study commissioned by remote-work hiring platform Upwork. HoneyBook, a fintech startup that provides payment and operations support for freelancers, in May raised $155 million in funding and achieved unicorn status with its $1 billion-plus valuation.

Durable Capital Partners led the Series D funding with other new investors including renowned hedge fund Tiger Global, Battery Ventures, Zeev Ventures, and 01 Advisors. Citi Ventures, Citigroup’s startup investment arm that also backs fintech robo-advisor Betterment, participated as an existing investor in the round alongside Norwest Venture partners. The latest round brings the company’s fundraising total to $227 million to date.

Here’s the 21-page pitch deck a Citi-backed fintech for freelancers used to raise $155 million from investors like hedge fund Tiger Global


Fraud prevention for lenders and insurers

woman shopping online using laptop

Onboarding new customers with ease is key for any financial institution or retailer. The more friction you add, the more likely consumers are to abandon the entire process.

But preventing fraud is also a priority, and that’s where Neuro-ID comes in. The startup analyzes what it calls “digital body language,” or, the way users scroll, type, and tap. Using that data, Neuro-ID can identify fraudulent users before they create an account. It’s built for banks, lenders, insurers, and e-commerce players.

“The train has left the station for digital transformation, but there’s a massive opportunity to try to replicate all those communications that we used to have when we did business in-person, all those tells that we would get verbally and non-verbally on whether or not someone was trustworthy,” Neuro-ID CEO Jack Alton told Insider.

Founded in 2014, the startup’s pitch is twofold: Neuro-ID can save companies money by identifying fraud early, and help increase user conversion by making the onboarding process more seamless.

In December Neuro-ID closed a $7 million Series A, co-led by Fin VC and TTV Capital, with participation from Canapi Ventures. With 30 employees, Neuro-ID is using the fresh funding to grow its team and create additional tools to be more self-serving for customers.

Here’s the 11-slide pitch deck a startup that analyzes consumers’ digital behavior to fight fraud used to raise a $7 million Series A


AI-powered tools to spot phony online reviews

Fakespot CEO
Saoud Khalifah, founder and CEO of Fakespot.

Marketplaces like Amazon and eBay host millions of third-party sellers, and their algorithms will often boost items in search based on consumer sentiment, which is largely based on reviews. But many third-party sellers use fake reviews often bought from click farms to boost their items, some of which are counterfeit or misrepresented to consumers.

That’s where Fakespot comes in. With its Chrome extension, it warns users of sellers using potentially fake reviews to boost sales and can identify fraudulent sellers. Fakespot is currently compatible with Amazon, BestBuy, eBay, Sephora, Steam, and Walmart.

“There are promotional reviews written by humans and bot-generated reviews written by robots or review farms,” Fakespot founder and CEO Saoud Khalifah told Insider. “Our AI system has been built to detect both categories with very high accuracy.”

Fakespot’s AI learns via reviews data available on marketplace websites, and uses natural-language processing to identify if reviews are genuine. Fakespot also looks at things like whether the number of positive reviews are plausible given how long a seller has been active.

Fakespot, a startup that helps shoppers detect robot-generated reviews and phony sellers on Amazon and Shopify, used this pitch deck to nab a $4 million Series A


New twists on digital banking

Zach Bruhnke, HMBradley
Zach Bruhnke, cofounder and CEO of HMBradley

Consumers are getting used to the idea of branch-less banking, a trend that startup digital-only banks like Chime, N26, and Varo have benefited from.

The majority of these fintechs target those who are underbanked, and rely on usage of their debit cards to make money off interchange. But fellow startup HMBradley has a different business model.

“Our thesis going in was that we don’t swipe our debit cards all that often, and we don’t think the customer base that we’re focusing on does either,” Zach Bruhnke, cofounder and CEO of HMBradley, told Insider. “A lot of our customer base uses credit cards on a daily basis.”

Instead, the startup is aiming to build clientele with stable deposits. As a result, the bank is offering interest-rate tiers depending on how much a customer saves of their direct deposit.

Notably, the rate tiers are dependent on the percentage of savings, not the net amount.

“We’ll pay you more when you save more of what comes in,” Bruhnke said. “We didn’t want to segment customers by how much money they had. So it was always going to be about a percentage of income. That was really important to us.”

Check out the 14-page pitch deck fintech HMBradley, a neobank offering interest rates as high as 3%, used to raise an $18.25 million Series A

Read the original article on Business Insider

See 7 pitch decks that fintechs looking to disrupt wealth, banking, and credit scores used to raise millions

dollar bills money
Check out these pitch decks for examples of fintech founders sold their vision.

Fintech VC funding hit a fresh quarterly record of $22.8 billion in the first three months of 2021, according to CB Insights data. While mega-rounds helped propel overall funding, new cash was spread across 614 deals.

Insider has been tracking the next wave of hot new startups that are blending finance and tech.

Check out these pitch decks to see how fintech founders are selling their vision and nabbing big bucks in the process. You’ll see new financial tech geared at freelancers, fresh twists on digital banking, and innovation aimed at streamlining customer onboarding.


Blockchain-based credit score tech

John Sun, Anna Fridman, and Adam Jiwan are the cofounders of fintech startup Spring Labs.
John Sun, Anna Fridman, and Adam Jiwan are the cofounders of fintech startup Spring Labs.

A blockchain-based fintech startup that is aiming to disrupt the traditional model of evaluating peoples’ creditworthiness recently raised $30 million in a Series B funding led by credit reporting giant TransUnion.

Four-year-old Spring Labs aims to create a private, secure data-sharing model to help credit agencies better predict the creditworthiness of people who are not in the traditional credit bureau system. The founding team of three fintech veterans met as early employees of lending startup Avant.

Existing investors GreatPoint Ventures and August Capital also joined in on the most recent round. So far Spring Labs has raised $53 million from institutional rounds.

TransUnion, a publicly-traded company with a $20 billion-plus market cap, is one of the three largest consumer credit agencies in the US. After 18 months of dialogue and six months of due diligence, TransAmerica and Spring Labs inked a deal, Spring Labs CEO and cofounder Adam Jiwan told Insider.

Here’s the 10-page pitch deck blockchain-based fintech Spring Labs used to snag $30 million from investors including credit reporting giant TransUnion


Digital banking for freelancers

freelance freelancer remote working remotely typing

Lance is a new digital bank hoping to simplify the life of those workers by offering what it calls an “active” approach to business banking.

“We found that every time we sat down with the existing tools and resources of our accountants and QuickBooks and spreadsheets, we just ended up getting tangled up in the whole experience of it,” Lance cofounder and CEO Oona Rokyta told Insider.

Lance offers subaccounts for personal salaries, withholdings, and savings to which freelancers can automatically allocate funds according to custom preset levels. It also offers an expense balance that’s connected to automated tax withholdings.

In May, Lance announced the closing of a $2.8 million seed round that saw participation from Barclays, BDMI, Great Oaks Capital, Imagination Capital, Techstars, DFJ Frontier, and others.

Here’s the 21-page pitch deck Lance, a digital bank for freelancers, used to raise a $2.8 million seed round from investors including Barclays


Digital tools for independent financial advisors

Jason Wenk, Altruist
Jason Wenk, founder and CEO of Altruist

Jason Wenk started his career at Morgan Stanley in investment research over 20 years ago. Now, he’s running a company that is hoping to broaden access to financial advice for less-wealthy individuals.

The startup raised $50 million in Series B funding led by Insight Partners with participation from investors Vanguard and Venrock. The round brings the Los Angeles-based startup’s total funding to just under $67 million.

Founded in 2018, Altruist is a digital brokerage built for independent financial advisors, intended to be an “all-in-one” platform that unites custodial functions, portfolio accounting, and a client-facing portal. It allows advisors to open accounts, invest, build models, report, trade (including fractional shares), and bill clients through an interface that can advisors time by eliminating mundane operational tasks.

Altruist aims to make personalized financial advice less expensive, more efficient, and more inclusive through the platform, which is designed for registered investment advisors (RIAs), a growing segment of the wealth management industry.

Here’s the pitch deck for Altruist, a wealth tech challenging custodians Fidelity and Charles Schwab, that raised $50 million from Vanguard and Insight


Payments and operations support

HoneyBook Oz Naama Dror co founders
HoneyBook cofounders Dror Shimoni, Oz Alon, and Naama Alon.

While countless small businesses have been harmed by the pandemic, self-employment and entrepreneurship have found ways to blossom as Americans started new ventures.

Half of the US population may be freelance by 2027, according to a study commissioned by remote-work hiring platform Upwork. HoneyBook, a fintech startup that provides payment and operations support for freelancers, in May raised $155 million in funding and achieved unicorn status with its $1 billion-plus valuation.

Durable Capital Partners led the Series D funding with other new investors including renowned hedge fund Tiger Global, Battery Ventures, Zeev Ventures, and 01 Advisors. Citi Ventures, Citigroup’s startup investment arm that also backs fintech robo-advisor Betterment, participated as an existing investor in the round alongside Norwest Venture partners. The latest round brings the company’s fundraising total to $227 million to date.

Here’s the 21-page pitch deck a Citi-backed fintech for freelancers used to raise $155 million from investors like hedge fund Tiger Global


Fraud prevention for lenders and insurers

woman shopping online using laptop

Onboarding new customers with ease is key for any financial institution or retailer. The more friction you add, the more likely consumers are to abandon the entire process.

But preventing fraud is also a priority, and that’s where Neuro-ID comes in. The startup analyzes what it calls “digital body language,” or, the way users scroll, type, and tap. Using that data, Neuro-ID can identify fraudulent users before they create an account. It’s built for banks, lenders, insurers, and e-commerce players.

“The train has left the station for digital transformation, but there’s a massive opportunity to try to replicate all those communications that we used to have when we did business in-person, all those tells that we would get verbally and non-verbally on whether or not someone was trustworthy,” Neuro-ID CEO Jack Alton told Insider.

Founded in 2014, the startup’s pitch is twofold: Neuro-ID can save companies money by identifying fraud early, and help increase user conversion by making the onboarding process more seamless.

In December Neuro-ID closed a $7 million Series A, co-led by Fin VC and TTV Capital, with participation from Canapi Ventures. With 30 employees, Neuro-ID is using the fresh funding to grow its team and create additional tools to be more self-serving for customers.

Here’s the 11-slide pitch deck a startup that analyzes consumers’ digital behavior to fight fraud used to raise a $7 million Series A


AI-powered tools to spot phony online reviews

Fakespot CEO
Saoud Khalifah, founder and CEO of Fakespot.

Marketplaces like Amazon and eBay host millions of third-party sellers, and their algorithms will often boost items in search based on consumer sentiment, which is largely based on reviews. But many third-party sellers use fake reviews often bought from click farms to boost their items, some of which are counterfeit or misrepresented to consumers.

That’s where Fakespot comes in. With its Chrome extension, it warns users of sellers using potentially fake reviews to boost sales and can identify fraudulent sellers. Fakespot is currently compatible with Amazon, BestBuy, eBay, Sephora, Steam, and Walmart.

“There are promotional reviews written by humans and bot-generated reviews written by robots or review farms,” Fakespot founder and CEO Saoud Khalifah told Insider. “Our AI system has been built to detect both categories with very high accuracy.”

Fakespot’s AI learns via reviews data available on marketplace websites, and uses natural-language processing to identify if reviews are genuine. Fakespot also looks at things like whether the number of positive reviews are plausible given how long a seller has been active.

Fakespot, a startup that helps shoppers detect robot-generated reviews and phony sellers on Amazon and Shopify, used this pitch deck to nab a $4 million Series A


New twists on digital banking

Zach Bruhnke, HMBradley
Zach Bruhnke, cofounder and CEO of HMBradley

Consumers are getting used to the idea of branch-less banking, a trend that startup digital-only banks like Chime, N26, and Varo have benefited from.

The majority of these fintechs target those who are underbanked, and rely on usage of their debit cards to make money off interchange. But fellow startup HMBradley has a different business model.

“Our thesis going in was that we don’t swipe our debit cards all that often, and we don’t think the customer base that we’re focusing on does either,” Zach Bruhnke, cofounder and CEO of HMBradley, told Insider. “A lot of our customer base uses credit cards on a daily basis.”

Instead, the startup is aiming to build clientele with stable deposits. As a result, the bank is offering interest-rate tiers depending on how much a customer saves of their direct deposit.

Notably, the rate tiers are dependent on the percentage of savings, not the net amount.

“We’ll pay you more when you save more of what comes in,” Bruhnke said. “We didn’t want to segment customers by how much money they had. So it was always going to be about a percentage of income. That was really important to us.”

Check out the 14-page pitch deck fintech HMBradley, a neobank offering interest rates as high as 3%, used to raise an $18.25 million Series A

Read the original article on Business Insider