In the past month, every major tech company has revealed new fintech ambitions — and that's good for consumers, according to Brandon Krieg, CEO of the fractional investing and banking app Stash.
"It's really telling for the consumer that there's a better way and different way to manage your money versus only going to the brick and mortar," Krieg said in an interview with Cheddar Monday. "I welcome this continued innovation it's going to help us all stay on our toes."
This month alone, Google revealed plans to offer consumer checking accounts, JPMorgan Chase said it's developing an e-wallet for Amazon and gig economy platforms like Lyft and Airbnb, and Facebook began rolling out Facebook Pay. In October, Uber introduced debit cards for drivers through a partnership with Green Dot, the same company that powers the Stash bank account.
With platforms of such large existing scale integrating financial services, it remains to be seen what happens to the disruptors: young fintech companies, like Stash, that have made a dent in the consumer finance industry with a new lower-fee, transparent, and customer-centric versions of core financial products (checking and savings accounts, investing, lending, and insurance).
"It's all about data and the customer being dead center," Krieg said. "The financial ecosystem is there for them when they need it, and that's it. The days of selling everything you have at a customer — those days will quickly end. The customer will get access to different types of products they never really had access to and all wrapped around advice … That's where this business is going versus a financial supermarket where you just get everything."
Stash, which initially launched as an investing app, currently has four million customers, up from 3.1 million in April. It launched its bank account in March, along with its stock-back feature, which earns users stock in the companies where they spend, rather than cash. Krieg said Monday that users have earned fractional shares of stock from more than five million qualifying transactions.
In the last month, Stash has added support for Apple Pay and Google Pay wallets, mobile check deposit, and bill pay.
Orangetheory Fitness is redefining the future of workouts with smarter tech, strength-based programming, and community-driven studios built for what’s next.
Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process. iRobot said that it is being acquired by Picea through a court-supervised process. Picea is the company's primary contract manufacturer. The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
Wealthfront’s CFO Alan Iberman talks the $2.05B IPO and the major moment for robo banking as the company bets on AI, automation, and “self-driving money."
