Micro-investment Service Stash raises $65M, Starts Banking and 'Stock-Back' Rewards with Green Dot
By Telecom Tech Outlook | Friday, March 15, 2019
Stash—the provider of the micro-investment mobile app—describes itself as a digital-first financial services company committed to helping neophytes begin investing through its newly launched banking service and a rewards program called Stock-Back. Stash has raised $65 million through its Series E funding round.
Stash customers can receive fractional shares of stock each time they make a qualified purchase using the debit card through Stock-Back. The stock is an asset that has no expiration date which can build an investment portfolio for customers whenever they spent. As stated by the company it gives 0.125 percent of each qualifying rewards to its customers.
The program had been previously tested with a limited number of customers. During this testing period the company saw an overwhelmingly positive response from users as they are able to pay regular bills and in return received stocks as well as access to dividends, educational resources and financial advice as said by Ed Robinson the co-founder and President at Stash.
Stock-back is part of a broader set of banking services— powered by Green Dot’s banking-as-a-service platform—that includes a debit account with no overdraft or monthly maintenance fees and access to an extensive network of free ATMs nationwide.
Stash, a part of a wave of fintech startups have tapped into the popularity of applications and the advent of new financial services technology to democratize how individuals can save, spend, invest, borrow and lend money by shifting many of the operations and transactions out of the hands of leading players who used to control them. Up from 850,000 in mid-2017 Stash has amassed over three million clients.