Empower, a U.S.-based mobile banking app, announced on Thursday it secured $20 million through its Series A funding round. Participants of the round included new investors Icon Ventures, Defy Ventures, and David Velez, Founder and CEO of Nubank, one of the most valuable financial technology startups in the world. Existing investors Sequoia Capital and Initialized Capital also joined the round.
Founded in 2016, Empower describes itself as a mobile app that makes managing money the “easiest thing” in the world. The startup’s mission is to democratize access to financial knowledge and improve financial outcomes by combining personalized mentorship, AI, and rewards checking. The company also claims:
“Empower is the first to bring all of these features into one seamless mobile app that helps Americans effortlessly save more than ever before. This latest financing follows the company’s successful launch of high-interest checking and automated savings accounts at 1.60% APY with no minimums, no overdraft fees, and unlimited withdrawals.”
Warren Hogarth, Co-Founder and CEO of Empower, spoke about the mobile app’s features by stating:
“There’s growing demand in the market for financial knowledge to be more practical – and that means actionable, personalized information in real time to create better outcomes. We combine human coaching with the latest technology, including AI, to continuously monitor our customers’ accounts and provide intelligent alerts, prompts, and analyses to improve their financial decision-making in the moment and build financial literacy. We’ve designed every product feature to make it dead-simple to save more and grow their wealth.”
The company further noted that the Series A funding round follows its successful launch of high-interest checking and automated savings accounts at 1.60% APY with no minimums, no overdraft fees, and unlimited withdrawals. Empower is planning to use the funds from the Series A to further advance its platform.