It is no secret that consumer financial institutions are large, outdated, and seemingly incapable of creating a user-friendly experience. Most seem like they have simply become too big to innovate. The way that fintech companies have come alive and taken off with such incredible magnitude speaks volumes to the insufficiencies of the current financial experiences.
Banking is one of the largest industries in the world, with the top 4 banks being worth ~$1.1T. Smaller, newer neobanks to join the scene like: Chime, Aspiration, MoneyLion and Varo, to name a few, are currently worth <$20B.
Fintech companies are helping to answer the difficult questions around banking and unearth the secrets to how it works. HMBradley enters the market as a modern banking system that allows customers to understand what changes the rate they receive on their savings accounts. It is revolutionizing the way customers are experiencing their bank by teaching them how their savings habits affect the APY they receive. As customers deposit in, and spend money out of their HMBradley account, they have the potential to earn higher interest rates. HMBradley rewards customers for developing good saving habits. The more they save, the higher APY they are eligible to receive. They are open about how the system works and want customers to understand how they can make more money using the HMBradley platform.
On the backend, HMBradley is using its platform, data, and intelligence to make custom offers to their customers based on who they truly are. Today most financial institutions make cursory attempts to offer credit and financial products to their customers based on little to no intelligence. HMBradley has spent the last 18 months building a modern banking platform that will bring intelligence and delightful experiences to consumers with offers tailored uniquely to them.
During our diligence on the company, we identified 3 key drivers for our investment decision. First and foremost was the team. Zach, Dmitry and Germain are world-class founders with deep backgrounds in finance, technology and banking. The team has proven that one of their superpowers is building a phenomenal team, and we are lucky to back them all. Second, they clearly have product market fit. They grew their deposits by almost 3x between the time of introduction to the company, to the time that we funded the company. Third, the market is huge. There is room for several winners in the market, and HMBradley is uniquely acquiring high value consumers at a break-neck pace.
Pelion is happy to announce a $5M investment into the Series A for HMBradley. We were lucky to join Acrew Capital and the rest of the syndicate for a total round size of $18.25M.
By Ben Lambert and Dub Price