Empower Chalks Up $20 million Series A

Empower Chalks Up $20 million Series A
06.03.2020 11:20 am

Empower Chalks Up $20 million Series A

Banking

Empower, a mobile banking app in the US challenger bank category, has raised $20 million in Series A funding, with participation from Icon Ventures, Defy Ventures, and David Velez, founder and CEO of Brazil's Nubank.

Founded by former Sequoia Capital partner Warren Hogarth, Empower combines AI and human coaching to deliver a suite of personal financial products, high-yield deposit accounts, budgeting and spend tracking, bill negotiation and subscription management, and investment recommendations.

Launched in 2017, the company has attracted more than 600,000 active users to its platform.

This latest financing follows the company's launch of high-interest checking and automated savings accounts at 1.60% APY. Banking services for new accounts are provided by nbkc bank, and users are charged a $6 per month fee for the full suite of PFM tools.

Says Hogarth "We combine human coaching with the latest technology, including AI, to continuously monitor our customers' accounts and provide intelligent alerts, prompts, and analyses to improve their financial decision-making in the moment and build financial literacy."

Tom Mawhinney, general partner at Icon Ventures says most challenger banks are trying to tackle small parts of a more significant problem, like minimising fees or early direct deposit or improving design. "Empower has a broader mission to improve financial well-being and independence through personal impact - and that means giving people a complete toolset incorporating digital plus human mentorship to save more and make their money work harder," he says. "The company is unlocking possibilities on a whole different scale."

Related News

New digital-first bank – Monument – coming to the UK, to meet the needs of professionals, property investors and entrepreneurs

Monument reveals that it is in the latter stages of its application for a banking licence.  Monument plans to launch the bank of choice for the overlooked and underserved... Read more »

Royal Bank of Scotland (RBS) Leverages Mphasis’ Testing Centre of Excellence to Support Business Alignment Objectives

Mphasis (BSE: 526299; NSE: MPHASIS), an Information Technology (IT) solutions provider specialising in ... Read more »

OpenPayd unveils crypto banking and payments proposition amid unprecedented sector growth

OpenPayd, the API-led Banking-as-a-Service provider, today unveils its banking and payments solution for... Read more »

CaixaBank to enable non-residents to open an account and apply for a mortgage online

CaixaBank, Spain’s leading retail bank headed by chairman Jordi Gual and chief executive officer Gonzalo Gortázar, has become the country’s first bank to... Read more »

Paymentology eyes the Middle East as competition to attract digital-ready customers grows

UK cloud-based payment processor, Paymentology announces the expansion of its Middle East operation to meet the projected growth of digital banking in the... Read more »

Yolt helps users save on bills through partnership with flexible motor insurance provider By Miles

Yolt, the smart thinking money app, has expanded its network of partners today, announcing a new in-app partnership with pay... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel