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Since its inception, the company has grown to host more than 500,000 accounts on its service line as of today. At the time of debut in 2017, Current was focused on providing parents with a modern way to dish out allowances and reward their kids for performing tasks. Over time, the product became more like a real bank account for teens, culminating with the addition of routing and account numbers late last year
FREMONT, CA: Mobile banking application Current raised USD 20 million in a Series B funding round with participation from new investors including Wellington Management Company, Galaxy Digital EOS VC Fund, and CMFG Ventures. This round also saw returning investors QED Investors, Expa, and Elizabeth Street Ventures. With this funding round, the total capital raised by Current now stands at USD 45 million. The company which began as a teen debit card service provider, controlled by parents, expanded earlier this year to offer personal checking accounts.
Since its inception, the company has grown to host more than 500,000 accounts on its service line as of today. At the time of debut in 2017, Current was focused on providing parents with a modern way to dish out allowances and reward their kids for performing tasks. Over time, the product became more like a real bank account for teens, culminating with the addition of routing and account numbers late last year. Like any traditional bank, this allows teenagers to direct their paycheck towards Current.
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“We believe everyone should have access to affordable financial services that improve the chances for a better life,” said Stuart Sopp, Current founder and CEO. "We have made this a reality through rebuilding financial infrastructure with the Current Core. It allows us to build more products that offer new ways to interact with money. Our rapid growth to half a million accounts serves as a testament to the ways our products and cost savings are bringing better financial outcomes, and we anticipate bringing those benefits to over 1,000,000 customers by mid-2020."
Earlier this year, Current launched personal checking services using the same core technology that is used to power the company's teen banking product. The product includes features like faster direct deposits, gas hold crediting and merchant blocking without charging overdraft fees, hidden fees or requiring minimum balances. While the teen checking account users have an average age of 15, the average age for the new personal checking account users is 27.
The company plans to launch more features and services from next year onwards, including a cash-back system with brands and merchants in Q1. “It’s expensive to be poor, it really is. If you don't have much money, you're paying 30% or 35% for your credit, whereas if you're rich, you're paying 5%. So it's like the world is inverted for you and it holds you down," Sopp says. “So if we were to do credit, we are going to do it right.”
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