Qapital, the FinTech startup, raised $12 million in venture funding to expand its app that enables users to make goals and save money to reach those goals.
According to a report in TechCrunch, the FinTech startup’s Series A round of funding comes from investors, including Industrifonden, Northzone, Rocketship VC and Anthemis Exponential Ventures.
With the app, users can integrate their checking, savings and credit card accounts, so in addition to setting financial goals, they can stay on top of their finances. TechCrunch reported the funding will help increase the number of traditional banking features.
Qapital Founder George Friedman told TechCrunch the aim is to marry spending and savings together in one app. Beyond that, Qapital is aiming to transform users’ behavioral habits, which is partly why the company brought on Dan Ariely as its chief behavioral economist.
By including debit cards into the product, the report noted that it gives the startup a new revenue stream, because it can make money from the interchange fees. The startup’s move to expand with the new funding is also part of a movement in the FinTech space in which a handful of startups are looking to expand beyond what they are already offering. Many of the FinTechs started out focusing on narrow features and functionality, but by offering more features, they are becoming more like big financial services companies.
TechCrunch pointed to SoFi, the online lender, as an example. While it started out refinancing student loans, it is now expanding into banking with the acquisition of ZenBanx, the online bank. Zenbanx offers a mobile bank account that enables customers to save, send and spend money in multiple currencies, both in the U.S. and abroad. Since it is not an actual bank, it teamed up with FDIC member Wilmington Savings Fund Society, which issues accounts for Zenbanx. With the buy, SoFi will be able to expand its business into other areas. The company’s founder is staying on in an executive role, while the staff of both companies will be combined.