As Students Return to Class, Copper Banking Completes $ 13.3 Million Seed Funding
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SEATTLE, Oct.6, 2021 (GLOBE NEWSWIRE) – Teens are experts in spending money. The problem is, many never learn how to save it, manage it, and make it grow. One-third of American teens don’t have a bank account, relying on their parents’ credit cards and Venmo accounts to pay for everyday purchases. They don’t get any help in class either, as money management is poorly taught – or not taught at all – in school. It’s no wonder the United States ranks 14th in the world for financial literacy, a knowledge gap that leads to a lack of savings, crushing debt, and even bankruptcy.
It’s a cycle that Copper Banking aims to end with its Teenage Bank Accounts, which combine the mobile banking experience teens want with the financial education they lack. Copper today announced that it has completed a serial funding round totaling $ 13.3 million from new investors including Clocktower Ventures, Index Ventures Scout Fund, Launchpad Capital, Financial Venture Studio, Maven Ventures, Fiat Ventures, Samsung Next and Arnold Ventures, as well as investor PSL Ventures.
Where other youth-focused neobanks rely heavily on advertising to get the word out, Copper Banking relies on a network of young ambassadors who promote the platform in schools, clubs and teams. sports. For teens, that means less expense. For Copper, this is a stronger business model that dramatically increases trust and adoption while lowering acquisition costs.
Copper Banking was co-founded by CEO Eddie Behringer and CFO Stefan Berglund, who previously co-founded Snap! Raise, the country’s largest youth-focused crowdfunding platform. Break! Raise owes his own success to deep relationships at the local level in high schools. The pair mimic this pattern to fuel Copper’s growth. Copper, which launched earlier this year, already has more than 350,000 users on its platform, 70% of whom come from organic word of mouth.
“Copper is teens’ first bank and a teenager’s first bank account. We are providing this generation with the cheat codes to save money that we all wish we had earlier in life, ”Behringer said. “Access alone does not equate to literacy. Although we have the greatest digital access in history, we still have astronomical credit card and student loan debt. If we are to give a generation of teenagers a stronger financial footing, we need to reinvent the banking experience. “
Copper Banking provides an FDIC-backed digital bank account linked to 50,000 ATMs. Teens also get a personalized Copper debit card, P2P payments, direct deposits, and automatic savings options. Parents can link their traditional bank accounts to Copper Banking cards to provide an automatic “teenage salary” allowance. They also receive smart alerts and controls over spending behavior. Copper offers a co-parenting feature for separated parents living in different households. The average Copper customer is 15 years old and sponsors another friend, not to mention his own siblings.
“The teen market is incredibly attractive to neobanks, but teens don’t want their parents forcing one on them,” said Ben Savage, partner at Clocktower Ventures. “Copper has the brand, product and go-to-market model to fill that void, and we are extremely pleased to support Copper as they continue to build on the strong organic growth they are already seeing. “
Copper Banking previously announced $ 4.3 million in seed funding in August 2020. Clocktower Ventures and other new investors chose to invest afterwards after seeing rapid growth. Total funding is now $ 13.3 million.
The company will use the funding to further develop its banking platform and products, as well as drive customer adoption in target markets. Based in Seattle, the company recruits across multiple departments including engineering, compliance, marketing, sales, and operations.
About Copper BankingCopper Banking is a bank designed for teenagers. Founded with a mission to create the first generation of financial literacy, Copper teaches teens to make smart financial decisions. The Copper app and debit card allow teens to receive money from their parents, track their spending, and save, with no hidden fees. The in-app financial advice helps teens learn the essential money lessons they’ll need throughout their lives. More information can be found at http://www.getcopper.com.
Copper is a financial technology company. Banking services are provided by Evolve Bank & Trust, member of the FDIC.
Media contactChris [email protected] 415 848 9175
Source: Copper Bank