This week, UK digital bank Tandem announced that it was launching a crowdfunding campaign to raise $1.4 million. This funding round is reportedly part of the company’s “co-founders” program, which allows customers to own shares of the business.
Tandem aims to provide the most helpful, not the most painful, bank services for customers. The company is the 14th bank to receive a license from the PRA in the past two and a half years. According to CNBC, Tandem recently offered up free shares that were worth 5% of the business in return for advice and product feedback.
Ricky Knox, founder of Tandem, shared with the media outlet:
“Part of ‘co-founders’ is building a group of advocates. This is a group of people who have been involved. One of the things about the new generation growing up is that people want to come along and participate. We get them involved and we hope they will be customers and they will bring all their mates too.”
“We will be looking at how we can find solutions to things in your life you find irritating, such as being ripped off when going abroad and using credit card. The key is more around the piece that stitches that together, a robo adviser for your finances, the intelligence that sits in the middle and looking at how to do stuff better and do it for you. We are building an app that will intelligently making you better off.”
“You won’t find me cuddling up to the major high street banks. You’ve got the bank lobbing money through their accelerators. If you are a little fintech startup it is awesome to get a bank to give you 200 grand. Those guys won’t attack the hand that feeds them. The banks aren’t’ all going to die, the big ones will survive, there will be new champions that will thrive.”
Tandem’s crowdfunding campaign will be on its website and will begin mid-May.
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