SAN FRANCISCO, March 5, 2020 / PRNewswire / – Empower (autonom.me), a high-growth mobile banking application in the US challenger bank category, announced $ 20 million in Series A financing. Financing included the participation of new investors Icon Ventures, Defy Ventures and David Velez, Founder and CEO of Nubank, one of the most valuable financial technology startups in the world. Existing investors Sequoia Capital and Initialized Capital also joined this round. Empower has created a distinct consumer banking experience that combines artificial intelligence and human coaching to power an innovative suite of personal finance solutions, including: high-yield deposit products, easy budgeting and tracking, invoice negotiation and subscription management; and personalized recommendations to empower millennials to make better financial decisions. Empower is the first to integrate all of these features into one seamless mobile app that helps Americans save effortlessly more than ever. This latest financing follows the successful launch by the company of high interest chequing accounts and automated savings at 1.60% APY with no minimum, no overdraft fees and unlimited withdrawals *.
“Empower is democratizing access to financial experts and products that were previously only available to the wealthiest 1%,” said Warren Hogarth, Co-founder and CEO of Empower. “There is a growing demand in the market for financial knowledge to be more practical – and that means customizable and actionable information in real time to create better results. We combine human coaching with the latest technology, including AI, to continuously monitor our clients’ accounts and provide intelligent alerts, prompts and analytics to improve their financial decision-making at the moment and develop financial literacy. We have designed every product feature to be extremely simple to save more and increase your wealth. “
Empower’s instant digital intelligence is complemented by human coaching to guide clients through the more difficult or unique financial challenges facing Millennials, including planning for retirement while managing student loan debt. Empower invests in data science as well as in a team of financial experts ready to help clients navigate the most complex questions according to their specific situation. These human coaches are millennial and know how to manage money through credit, loans, investments, etc. The goal is to produce tangible and positive results and to give people greater freedom of action and confidence as they navigate their financial lives.
“Today’s generation needs and wants more from their bank,” said Tom mawhinney, Managing Partner at Icon Ventures. “Most challenger banks are trying to solve small parts of a bigger problem, like cutting fees or direct deposit or improving design. Empower has a broader mission to improve well-being financial and independence through personal impact – and that means giving people a complete set of tools that integrate digital and human mentoring to save more and make their money work harder. Society opens up possibilities on a whole new scale . “
Gallup poll found that when millennials become unhappy or dissatisfied with their bank, they are not afraid to make a change and are 2.5 times more likely than baby boomers and 1.5 times more than Generation X to change banks. Empower appeals to a new generation of savvy young customers who are hungry for financial knowledge – advice they believe is lacking in the traditional banking industry. This sentiment is fueling a powerful new movement towards startups that offer more than just a place to deposit and withdraw their money.
“There is a considerable body of research that indicates that Generation Y is financially behind and in fact worse than previous generations,” said Alexis Ohanian, Co-founder and managing partner at Initialized Capital, and client of Empower. “Although we obviously have to solve systemic problems, Empower is designed to help this generation become smarter and more knowledgeable about their money. It is quite rare to find a consumer bank that offers a high return on all your money without the traditional deposit restrictions, no more over-ask for financial coaching through human and AI assistance. Empower is the all-in-one practical solution that was missing on the market. “
* Banking services for new athe accounts provided by the nbkc bank, member of the FDIC. The annual percentage return (APY) of 1.60% may change at any time. APY dated March 5, 2020. Empower charges self-recurring subscription fees of $ 6 to access the full suite of money management features offered on the platform after your first 30 days.
About Empower
Empower offers an AI-based consumer banking experience that is instantly accessible to everyone. The company’s mission is to democratize access to financial knowledge and improve financial results by combining AI and human coaching to offer an innovative suite of deposit products and personal financing solutions, all within a modern and seamless mobile experience. Empower was founded in 2016 in San Francisco through Warren Hogarth (CEO) and Justin Ammerlaan (CTO). The company is supported by Icon Ventures, Defy Ventures, Sequoia Capital, Initialized Capital and David Velez, among other investors.
SOURCE Empower
Related links
https://empower.me
