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Stash's User Base And Features Are Growing Like Weeds

Stash's User Base And Features Are Growing Like Weeds

The company that wants to get your friends into investing is growing fast. Stash Invest, a fintech startup that allows users to invest small amounts in exchange-traded funds, announced October 19 that it was expanding its capabilities to include checking and savings accounts.

On October 30, Stash CEO Brandon Krieg spoke with Benzinga about the move into online banking. Krieg emphasized the demand the company felt for tech-driven banking services, particularly as Stash surpassed 1.25 million users this week after launching in 2015.

“What we’ve learned [in that time] is what our customers need and how we can help them,” Krieg said. “They lack guidance and tools across their entire financial life, and you find that most people are paying nearly $300 a year in banking fees. People want to save and do more with their money, but aren’t getting that guidance from their bank. By offering a banking service, it helps our customers with all things related to money.”

The company’s customers seem to be representative of a subset of young Americans — Krieg says the average Stash user is 29 years old and earns just under the median national income, around $50,000 a year. On average, Stash adds 25,000 customers a week, Krieg told Benzinga.

“[Our customers] are retail workers, teachers, people driving for car services. We want to give people the experience the wealthy are getting, with better advice, help with investing, help with saving for retirement and focus on financial education,” Krieg said.

Krieg anticipates Stash becoming a one-stop shop for its users financial needs. In addition to its bank account product, the company added Roth and traditional IRA functionality this year. However, Krieg wants the company to maintain “authentic.” To him, authenticity means not expanding into verticals that don’t fit the company’s brand, like insurance underwriting—although he didn't rule out partnering with an existing business in the insurance space.

Krieg plans for Stash to grow to serve the 109 million Americans the company views as “mass market underbanked.” The company has 95 employees and has raised over $78 million.

Photo credit: public domain

Posted-In: Fintech Investing Stash InvestFintech Startups


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