Copper, the Seattle-based digital bank startup concentrating on 13-19-year-old customers by providing a variety of providers together with a debit card and a cell app, introduced a $4.three million seed spherical led by PSL Ventures, Jack Brody, director of product at Snap, Mana Ventures and Western Expertise Funding.
The one-year-old firm helps teenagers get monetary savings by giving cash rewards in exchange for hitting a financial savings aim or paying again mother and father on time, in keeping with a report in GeekWire. Teenagers may also earn cash by merely passing a quiz about finance.
The app permits for peer-to-peer funds, making it easy for folks to switch funds to youngsters and likewise affords bank-level safety with FDIC safety.
Copper earns income by charging mother and father of Copper customers a subscription payment, in addition to charging a small payment to distributors receiving funds made by way of a Copper debit card.
The 11-person firm is led by Stefan Berglund and Eddie Behringer, the co-founders of Snap! Increase, a Seattle-based on-line fundraising platform for youth teams. The pair took the training from there and utilized it to getting Copper off the bottom. The corporate cited information from CBS information that exhibits practically 20% of U.S. teenagers are usually not financially literate.
“Our transformative objective as an organization is to construct the primary financially profitable era,” mentioned Behringer, the corporate’s CEO. “As lofty as this sounds, we imagine the subsequent era is able to making monetary selections given the suitable steering and imagine that an individual’s first banking relationship ought to be created a lot earlier.”
Behringer mentioned Copper has two opponents, Step and Greenlight, however they’ve lower than 4% of shopper accounts within the U.S. and goal an older demographic.