INSUBCONTINENT EXCLUSIVE:
Mobile banking app Current, which began as a teen debit card controlled by parents, expanded to offer personal checking accounts earlier
Now the company says it has grown to host more than 500,000 accounts on its service and has closed on $20 million in Series B funding to
venture capital arm of the CUNA Mutual Group, a mutual insurance company serving credit unions and their 120 million members
Returning investors included QED Investors, Expa and Elizabeth Street Ventures.
The first version of Current, which debuted in 2017, was
focused on giving parents a more modern way to dole out allowances and reward their kids for chores
But over time, the product became more like a real bank account for teens, culminating with the addition of routing and account numbers late
This allowed working teens to direct their paycheck to Current, as they could with a traditional bank.This year, Current launched personal
checking using the same core technology powering its 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
(Around 98% of teens on Current move to the personal checking app when they come of age, the company noted.)This puts Current in a more
competitive market, where a number of banking apps are now targeting a younger, more mobile generation that has begun to favor modern,
feature-rich apps over brick-and-mortar banks
banking services are provided by Choice Financial Group and Metropolitan Commercial Bank, which allows it to offer FDIC insurance up to
Visa co-branded debit card tied to the Current account
Along with the funding, Current and Visa are also announcing an expanded joint marketing partnership, which will help Current reach new
Sopp, Current founder and CEO
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
credit product and maybe Bitcoin investing
