AUSTIN, Texas–A new fintech promoting free ATM withdrawals, no overdraft fees and even ownership in the bank has raised $30 million from investors.
Good Money, which promotes itself as a socially progressive financial services provider, is also touting consumer loan rates and an FDIC-insured savings rates paying 2% APY. The more often a customer uses the company’s services, the more equity in the business the customer earns.
The start-up is being led by Gunnar Lovelace, a founder of the online organic-food retailer Thrive Market. Lovelace said the fintech has raised the $30 million from Galaxy Digital, Breyer Capital and other investors.
In addition, users of the service will also be given say in how the company spends 50% of its profits, which it has pledged to spend on efforts to combat income inequality and climate degradation. Good Money says it will launch in 2019.
The GoodMoney website announces “The Future of Money is Good,” announces “You Own the Bank,” offers a means of signing up for a waiting list, claims there is no minimum balance (along with the no overdraft fees), and says its ethos is to “Always Do Good.”
According to an analysis of the company’s business model by CoinDesk, its promotional premise is the idea Millennials trust Internet personalities more than media or financial institutions. Thus, the central idea is those personalities might be more than willing to monetize that trust.
A Mobile Crypto Wallet
GoodMoney earlier raised $22 million in the form of what appears to be a convertible note, according to CoinDesk, which noted Good Money had been rumored to be planning a major initial coin offering (ICO). Its product is effectively a mobile crypto wallet that will double as bank, payment system and investment platform (among other things), CoinDesk said.
“Many of Good Money’s promises will sound familiar to regular readers of initial coin offering (ICO) white papers – fast transactions! low fees! amazing user experience! – but one aspect of Good Money does stand out: its focus on marketing,” said CoinDesk in its review. “In a document outlining Good Money’s ‘Token Ecosystem,’ it describes a fundraising plan that ultimately aims to raise $80 million selling GDMY security tokens, or ‘Good Shares,’ tokenized equity in the company.”
“Good Money Festivals” are also one of the six legs of its larger marketing plan, and one of five co-founders is a long-time Burning Man staff member, CoinDesk reported.