According to the 2019 Charles Schwab Modern Wealth report, less than 40 percent of millennials feel financially stable, and almost two thirds are living paycheck to paycheck. In addition to mounting student loan debt and fewer opportunities to build wealth, millenials are often excluded from the financial planning sector. With little accessible guidance, it can be challenging to find a solid financial footing.
Stackin’, a California-based FinTech startup, aims to be the financial adviser that underserved young adults need. After raising $4 million in Series A funding, the company plans to launch banking and investing features for its text messaging platform, increase user acquisition and expand its operations.
“Stackin’ is fundamentally changing the shape and context of what a financial relationship means by creating a fun, inclusive and judgement free environment that empowers our users to learn and take action through messaging,” Scott Grimes, CEO and co-founder of Stackin’, said in a press release. “This funding allows us to build out new features around banking and investing that will enhance the relationship with our customers.”
With its text message interface, Stackin’ encourages users to ask questions to improve their finances and get access to helpful products and services in the process.
To get started in the investing world, the company offers The Starter Stack, a personalised investment strategy. An investment of $5 is all the platform requires to start investing in a low-cost diversified portfolio, and access to unlimited investments and guidance are available for just $2 a month.
In addition, through a partnership with Radius Bank, the startup also offers Stackin’ Cash, a free personal high-interest checking account. The platform offers 1.00 percent APY, free ATMs around the world and no monthly maintenance fees or overdraft fees.
Stackin’ also offers personalised features such as spending analyses, savings reminders and stock alerts.
“Consumers now have the ability to choose their financial services products based on what best serves their individual needs and the brand they want to identify with,” said Kyle Arbaugh, President of Stackin’. “Stackin’ is a brand for those underserved young consumers that want a simpler, more personal way to reach their financial goals.”
The company’s $4 million funding round was led by Experian Ventures, Dig Ventures and Cherry Tree Investments, with participation from Social Leverage, Wavemaker Partners and Mucker Capital. Ross Mason, founder of Dig Ventures and founder and former CEO of MuleSoft, will also join the board of directors at Stackin’.
“With Stackin’s distinctive model and considerable early scale, I think there are many impactful ways to deepen the relationship with their consumers, as well as help elevate financial literacy for everyone,” Ross said. “I’m excited to join the Stackin’ team.”
Saad Sherida al-Kaabi
Sheikh Nawaf al-Saud al-Nasser al Sabah