FinTech Firm One Announces $40 Million Funding Round
Another neobanking app has just closed a significant investment round. This week, FinTech app One has revealed that it raised $40 million. The Series B was led by Progressive Investment Company, Inc. while Obvious Ventures, Foundation Capital, Core Innovation Capital, and others also participated. With the newly-acquired funds, the company says it plans on scaling its team, expanding their product offerings, and growing its user base. Previously, the FinTech raised $17 million in its Series A last year.
Like many neobanks, One offers a number of banking features while forgoing many of the fees traditionally associated with such accounts. For example, the service currently offers customers 1% APY on their savings while enabling them to increase that amount up to as much as 3% APY when they directly deposit saved funds, set aside money using their round ups feature, and more. Thanks to such incentives, One reports that it’s helped users automatically save a total of more than $2 million since debuting last year. Most recently, the app introduced a credit building account that allows customers to make automatic on-time payments that are then reported to major credit bureaus.
One’s Series B comes on the heels of several other neobanking investment rounds. Most notably, Chime announced a $750 million Series G earlier this week that value the company at $25 billion. Additionally, Upgrade — which started with personal loans but has since branched out into consumer deposit accounts — closed a $105 million Series E earlier this month, bringing the firm’s valuation to $3.3 billion.
Speaking to the need for and goals of One, CEO Brian Hamilton stated, “Stretched middle-income households and working families deal with financial stress on a daily basis and are largely unsupported by current offerings. Every day we are marching towards changing this landscape to better serve customers and challenge the antiquated practices and uncompetitive pricing of traditional banking products.” Hamilton added, “One offers features that can make a lasting financial impact for hard working people.”
As has been documented plenty of times over the past few months, FinTech is having a red letter year. After a record-setting Q1 and Q2, investment in the industry hasn’t seemed to let up. This goes doubly for neobank and challenger banks, which continue to attract both consumers and investors. On that note, with One previously showing its knack for not only coming up with good ideas but also executing them quickly, the FinTech is definitely one to watch.