Mobile banking app Empower Finance has raised $20 million in Series A funding after gaining the backing from both Icon Ventures, and Defy Ventures.
David Velez, founder and CEO of Brazil-based Nubank, the largest fintech company in Latin America, also took part in the funding round.
Founded by former Sequoia Capital partner Warren Hogarth in 2017, Empower combines AI and human coaching to deliver a suite of personal financial products, high-yield deposit accounts, budgeting and spend tracking, bill negotiation and subscription management, and investment recommendations.
Since its inception,the US challenger banking app has attracted more than 600,000 active users to its platform.
Hogarth commented: “We combine human coaching with the latest technology, including AI, to continuously monitor our customers’ accounts and provide intelligent alerts, prompts, and analyses to improve their financial decision-making in the moment and build financial literacy.”
The series of funding follows on from Empower’s launch of high-interest checking and automated savings accounts at 1.60% APY.
Tom Mawhinney, general partner at Icon Ventures concluded: “Empower has a broader mission to improve financial well-being and independence through personal impact – and that means giving people a complete toolset incorporating digital plus human mentorship to save more and make their money work harder. The company is unlocking possibilities on a whole different scale.”
