Digital bank Current has raised $2o million in a Series B funding round, according to a company release. The funding was led by Wellington Management Company, Galaxy Digital EOS VC Fund, and CMFG Ventures. Current also said it was expanding its partnership with Visa as it tops more than half a million customers.
In total, Current has now raised $45 million – a small amount in the digital banking realm as this sector of Fintech is picking up steam.
Current noted that Wellington Management Company is a first-time investor along with Galaxy Digital EOS VC Fund.
Galaxy Digital, the genesis of Block.one/EOS fame, focuses on backing digital asset and blockchain based firms so the investment in Current appears to be an interesting act of diversification.
CMFG Ventures is the venture capital arm of CUNA Mutual Group, a mutual insurance company with 120 million members, joined the fundraise.
In addition, prominent Fintech investor QED Investors, plus Expa and Elizabeth Street Ventures have returned to fund the company.
Stuart Sopp, Current founder and CEO, said they believe that everyone should have access to affordable financial services:
“We have made this a reality through rebuilding financial infrastructure with the Current Core. It allows us to build more products that offer new ways to interact with money. Our rapid growth to half a million accounts serves as a testament to the ways our products and cost savings are bringing better financial outcomes and we anticipate bringing those benefits to over 1,000,000 customers by mid-2020.”
Earlier this year, Current launched a personal checking account which is said to have fueled its growth. Unlike stodgy traditional banks, Current;s checking accounts provide faster direct deposits, gas hold crediting and merchant blocking without charging overdraft fees, no minimum balance fees or hidden fees.
Current is FDIC insured up to $250,000. Just like every other digital only bank in the US, Current has partnered with a regulated bank to provide certain services. Current is currently working with Choice Financial Group and Metropolitan Commercial Bank.
Sam Englebardt, Co-Founder and co-Head of Principal Investments at Galaxy Digital, said he believed that in a competitive digital banking market Current stands out:
“We are excited to support Stuart and his team as they enhance their product offering and accelerate into their next wave of expansion.”
Sopp said they have deep experience from Wall Street plus gaming, Fintech and more that enables them to approach banking in a new way:
“This funding will enable faster execution and growth on our company’s mission.”