Empower acquired $20 million in Series A funding round, aiming to fuel growth and product innovation for consumer banking.
Empower is a fintech platform based in San Francisco, California, United States that aims to help millennials manage their finances through its mobile app for iOS devices. Its mobile app combines the ability to see an overview of your day-to-day transactions and spending behavior, with other tools to transfer money between accounts, automate your savings, and soon, pay bills and pay down your debt.
The company announced a $20 million new funds from its Series A funding round from new investors including Icon Ventures, Defy Ventures, and David Velez, Founder and CEO of Nubank. Existing investors like Sequoia Capital and Initialized Capital also participated in the said round.
Empower makes managing money easy. The fintech company offers Automatic Savings, Effortless Budgeting, Smart Recommendations, Human Coach, and High-Interest Checking.
“Empower is democratizing access to financial experts and products that used to be available to only the top 1% wealthiest people,” said Warren Hogarth, Co-founder and CEO of Empower.
“There’s a growing demand in the market for financial knowledge to be more practical – and that means actionable, personalized information in real-time to create better outcomes. 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 at the moment and build financial literacy. We’ve designed every product feature to make it dead-simple to save more and grow their wealth,” Hogarth added.
Empower offers 1.60% APY in every Empower account balance. The interest combines daily – it means that the interest you accrue will be based on your daily ending balance. A user can receive their interest payment on the 1st of each following month.
“Today’s generation needs and wants more from their banks,” said Tom Mawhinney, General Partner at Icon Ventures. He added, “Most challenger banks are trying to tackle small parts of a more significant problem, like minimizing fees or early direct deposit or improving the 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. The company is unlocking possibilities on a whole different scale.”
Alexis Ohanian, Co-founder and Managing Partner at Initialized Capital commented, “There is a considerable body of research that says Millennials are financially behind and actually worse off than preceding generations. While we obviously need to address the systemic problem, Empower is designed to help this generation get smarter and savvier about their money. It’s pretty rare to find a consumer bank that offers high yield on all your money without the traditional deposit restrictions, plus on-demand financial coaching via both human and AI assistance. Empower is the practical all-in-one solution that’s been missing in the market.”