Finch, a fintech startup that integrates the benefits of investing and the flexibility of checking into an all-in-one account, has announced that it has raised $1.8M in seed funding to launch its platform and help transform how people manage their money. The round was led by Boston based Mendoza Ventures with participation from Barclays, Techstars Investors, and Draper Frontier.
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Finch democratizes investment access and empowers Millennials to make their money work for them. Finch lets customers earn investment returns by automatically investing their checking balance into a portfolio designed to match their unique risk profile. This means your entire balance is always working for you, from day one, no matter what your balance is. Finch further pushes the envelope by enabling customers instant access to their money when they need it – even the invested part!
At traditional banks and financial institutions, checking and investing accounts are separate. In order to put their money to work, customers are required to manage the flow of money between these accounts, through an ongoing manual process. This friction helps to explain why 86% of Americans do not invest outside of their retirement accounts. In addition, Americans pay an average of $329 per year in bank fees, but they receive very little back in terms of interest. Despite this, an overwhelming number of people continue to leave their balance sitting idle in a traditional checking account – when it could be working for them.
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Determined to help address this problem, empower younger generations financially, and help close the wealth gap, financial services maven, Neel Ganu founded Finch.
“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.
