Stash moves into banking with $65 million fund raise

Micro-investing app Stash is to introduce traditional banking services and 'Stock-Back' rewards on customers spending for its three million users on the back of a $65 million capital raise.

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Stash moves into banking with $65 million fund raise

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The company is to use Green Dot's Banking as a Service Platform to roll out a range of financial services offerings, including a debit account with no overdraft or monthly maintenance fees, access to a large network of free ATMs nationwide, as well as ASAP Direct Deposit.

Stash is also rolling out a new loyalty feature, dubbed Stock-Back, which rewards debit card spending on qualified purchases with fractional shares in the companies that cardholders choose to spend with.

Thus, when customers buy a burrito at Chipotle, pay T-Mobile bills, or shop at Amazon or Walmart they'll earn a piece of each companies' publicly traded stock. All Stock-Back rewards will be invested in customers' Stash personal investment accounts.

"Our ability to give customers the opportunity to save and build portfolios that mirror their spending behavior and preferences is incredibly powerful," says co-founder and president Ed Robinson. "During the testing period, we saw an overwhelmingly positive response from users as they pay ordinary bills like Netflix, and in return received Netflix stock as well as access to dividends, educational resources and financial advice. It's a winning combination for our over 3 million customers."

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