Financial Sevices Platform B9 Announces Launch
A new neobank is ready to welcome the world. After raising $1.9 million in pre-seed funding earlier this year, B9 says it is now ready to launch its financial services app. In a press release, the startup noted that its goal is to amass 100,000 customers by the end of this year. Meanwhile, the app reports that that “hundreds of thousands” of people have joined the waitlist, with a conversion rate of 15% as the platform has rolled out. According to their site, the B9 platform charges a monthly fee of $4.99. However, the app does feature a 90-day free trial.
As for what B9 has to offer, the headlining perk is the ability for customers to access their payroll funds up to 15 days early. In order to obtain this benefit, users will need to set up their payroll direct deposit in the app and receive at least one paycheck. Once this is done, they’ll be able to tap up to 100% of their monthly income before it arrives. This instant advance comes with no interest rate or other fees. With this feature, the FinTech is hoping to eliminate the need for payday loans or other expensive products.
Another notable aspect of B9 is its emphasis on immigrant populations, which are often unbanked. As the company’s CEO Sergei Terentyev explains, “Immigrant communities and other marginalized groups are invisible to traditional banks. They are hardworking people who deserve a full service banking option that fits the way they earn and spend.”
He went on to say, “We’re grateful to our investors and excited about the opportunity to bring a full suite of modern financial services to this underserved group. In our view, access to banking services that allow families to share resources, build credit and plan for the future is an equality issue, and the early response we’ve seen demonstrates the magnitude of the demand. We look forward to scaling our team and building out the platform to meet that demand and help people get ahead financially.”
B9’s big launch comes just after new data from eMarketer shows that Chime has a commanding lead when it comes to FinTech banking options. Incidentally, one of the features that helped Chime stand out was the ability for customers to obtain their paychecks up to two days early — a feature that several other neobanks have since adopted. On that note, B9 taking this to the next level by offering payday advances up to 15 days early could help it to attract new customers, even if there is a $4.99 monthly fee. With $1.9 million in investments already raised, also watch out for future B9 funding rounds to come.