This week saw an influx of investments in the emerging fintech sector. From Wefox to Obie, bolttech and Figorr, TechCrunch reported on several funding rounds that demonstrate the potential of the fintech space. The news follows the turbulence of Newchip – a tech accelerator that offered to help entrepreneurs succeed, yet was faced with a challenging situation behind closed doors. This case highlights the importance of being aware and researching into investments before committing, as many of the founders and employees suffered in this situation ultimately.
Money-saving solutions have been a popular topic amongst fintechs. This week, Step announced their 5% rate offered for theirsavings accounts, offering more options for consumers. Apple’s recent entry into the market, with a 4.15% rate, may have spurred Step’s commitment to increase their rewards, as well as motivate more people to save for an emergency.
In other news, three founders of ZestMoney have resigned from the startup, and real estate fintech EasyKnock saw the layoffs of 10% of their employees. Revolut’s UK chief was reportedly involved in an incident where he threatened a customer with a shotgun, and Stripe has powered a Pay By Bank feature for Airbnb. Lastly, Tiger Global-backed Axis launched a digital payments platform and Public revealed Alpha, an AI-powered investing sidekick.
Truist, a banking company, has released Long Game, a type of financial wellness playing app, which has gained traction from younger demographics. Meanwhile, Ramp has announced AI tools for helping businesses track their costs, and Fintech Ramp launched money-saving AI tools for businesses.
Situated in the heart of Austin, Texas, Newchip is a startup accelerator that raised $4M in Series A funding in 2019. Founded in 2017 by Lizzie Chapman, Priya Sharma and Ashish Anantharaman, it was Newchip’s mission to help entrepreneurs achieve success. However, amid the Covid-19 pandemic, employees were reportedly not happy with the internal workings of the company and ultimately resigned en masse. This case emphasizes the need for research and due diligence in the investment space before making any commitments as those involved suffered negative consequences.
CJ MacDonald, co-founder and CEO of Step, is a widespread follower of the fintech space. He informed TechCrunch that they always planned to offer the highest rate. In this case, Step was focused on providing more options and encouraging people to save more, due to the fact that many Americans are unable to come up with $400 in an emergency.
All in all, this past week the fintech industry proved to be bustling with news. The success of fintech startups and companies is promising and might just provide the foundations for a safer and more protected financial future.
