Charlie, a startup that provides banking services to Americans over the age of 62, has secured $16 million in Series A funding and $7 million in debt financing. TTV Capital led the funding round, which also included participation from FPV Ventures and Better Tomorrow Ventures. This new capital will support Charlie in its mission to transform financial services for the 62+ community and develop personalized fraud protections.
Key Takeaway
Charlie, a senior-focused banking startup, has raised
6 million in Series A funding and $7 million in debt financing. The funding will support Charlie in combating financial fraud and developing personalized fraud protections for its customers over the age of 62. With a growing customer base across all 50 states, Charlie aims to transform financial services and address the unique challenges faced by seniors.
Addressing the Financial Challenges of Seniors
According to Kevin Nazemi, co-founder and CEO of Charlie, over 50% of the 73 million seniors in the United States do not feel financially prepared for retirement. Charlie aims to address the unique financial needs of this community by offering features such as faster access to Social Security checks, 3% earnings on balances, and no monthly fees or minimums. Additionally, Charlie plans to introduce frictionless discounts for customers using their debit cards, eliminating the need to prove their age or eligibility.
One significant challenge for seniors is the transition from asset accumulation to de-accumulation during retirement. To ease this transition, Charlie allows all customers who signed up after September 1 to withdraw their Social Security benefit 3-5 days early. Charlie generates revenue through interchange fees, earning a percentage from merchants when customers use their Charlie Visa Debit card.
Combating Financial Fraud and Expanding Services
In line with its mission to protect seniors from financial fraud, Charlie plans to utilize the new funding to develop a suite of personalized fraud protections specifically designed for its target customers. The company also intends to expand its 15-person team and introduce new products and features to further enhance its offerings.
Gardiner Garrard, co-founder and managing partner of TTV Capital, highlighted the increased comfort of older adults with digital banking, a trend accelerated by the COVID-19 pandemic. This shift presents a significant opportunity for financial institutions to engage directly with the 62+ demographic. Charlie’s user-friendly platform and tailored services have received positive feedback and successfully meet the needs of this market.
