Empower Raises $4.5M to Launch Mobile Bank with Unmatched Rewards

Empower, a financial technology company whose mission is to reimagine consumers’ relationship with their money, today announced it has raised $4.5 million. The round was led by Initialized Capital with participation from existing investor Sequoia Capital.

This latest round will accelerate the company’s new product offering, Empower banking, a new kind of mobile bank with unmatched rewards. Empower members will earn 1 percent cashback on purchases paid with the Empower debit card,1.85 annual percentage yields on savings accounts along with no maintenance, foreign transaction fees or account minimums. Members can access their checking and savings accounts for free at over 25,000 ATMs or use an out-of-network ATM anywhere in the world and get reimbursed. The service also comes with an award-winning, artificial intelligence-powered assistant that helps members make better financial decisions.

“1 out of 2 millennials would change banks if a better option came along,” said Warren Hogarth, CEO and co-founder of Empower. “Zero interest rates, dismal personal service, no rewards and high fees are the norm. We are changing that by offering a service with unmatched interest rates on savings, cash back checking, and an intelligent assistant that watches your back 24/7.”

A recent study conducted by Empower found that the average person banking at the top four U.S. banks receives zero interest and rewards, while two in three of them pay $360 in bank fees a year. The same person banking with Empower would earn $18 a month, or $216 a year in cashback and interest, with no additional fees.

“Consumers have been trained to have very low expectations when it comes to their banking services,” said Alexis Ohanian, co-founder of Initialized Capital. “Empower has created a banking service that is rewarding in ways that are both quantifiable, through high interest rates and cash back, and unquantifiable, through intelligent assistance that helps members make better financial decisions. We are excited to partner with Warren and his team on this journey to reinvent consumer banking.”