Chart showing respondents demand for neobank specific features

Summary List Placement

NYC-based Clair completed a $15 million Series A funding round, bringing its total funding to $19.5 million after scoring $4.5 million in a seed round a few months ago, TechCrunch reports.

Here’s what it does:

The neobank’s flagship offering is a free earned-wage advance product. It integrates directly with HR systems to grant customers early access to money they’ve already earned. It also provides more standard neobank features, including spending and saving accounts, a debit card that can be accessed virtually via its app, and personal finance management tools. The neobank plans to use its fresh funding to continue to expand into areas like healthcare and debt repayment, per TechCrunch.

Clair acts as an alternative to predatory payday lenders. US regulators have had their eyes on payday lending for some time: They issued a call in March 2020 for financial institutions (FIs) to offer small-dollar loans to shield financially distressed consumers from having to turn to payday lenders. Clair’s solution joins small-dollar lending options from FIs including neobank Varo’s Varo Advance and Bank of America’sBalance Assist, as well as similar early wage access offerings from neobanks Chime and Current.

Clair is spearheading its customer acquisition efforts with early wage access—a sidelong approach to becoming …read more


Source:: Businessinsider – Finance

      

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