Albert, the money saving app, has recently closed on a $2.5 million round of seed funding.
According to a report by TechCrunch, the VC funding came from Bessemer Ventures Partners, CFSI (Center for Financial Services Innovation), 500 Startups and 500 Fintech. Other unnamed VCs also took part in the round of funding.
Albert is targeted at young, mobile users and aggregates all of a customer’s financial data, such as bank accounts, credit cards, property loans and investment information, all in one place. Once the data is aggregated into the platform, the app focuses on providing financial advice and urging customers to make changes. It also helps users track their spending and stay on top of their budget.
“The vast majority of people between the ages of 20 and 40 don’t actually save money. They actually spend more than they’ve earned in the last three months,” said Cofounder Yinon Ravid in an interview with TechCrunch. “So, one of the first pieces of advice we give is to save a few dollars to grow your emergency fund.”
The app can also transfer money automatically from a bank to Albert Savings, which is an FDIC savings account that is part of the app. The app can also make suggestions, including applying for a credit card with a lower interest rate or reducing car insurance payments by shopping around.
“One of the things we think is very important in giving people advice and improving their financial health is staying objective and staying at arm’s length from the services we recommend,” said Ravid to TechCrunch.
In order to provide recommendations, Albert hooked up with partners, including lenders that provide loan quotes, Betterment for investment advice and CoverHound for insurance quotes. Albert gets revenue from the referrals with these partnerships and thus can keep the app free to consumers, noted the report.