$1 billion in $28 increments: Stash reaches major milestone
- Challenger STASH has reached a major milestone in its growth.
- The company continues to expand its appeal to a broad swatch of users.
STASH has crossed more than $1 billion in AUM. Fueled by an average deposit of just $28 per customer, the company has reached this milestone in four years.
“In the past, $28 would get you nowhere, or worse, laughed out the door at traditional financial institutions,” said Brandon Krieg, Stash’s co-founder and CEO. “We’re proving that small amounts of money — however much our customers can afford — on a consistent basis can truly make a lasting impact on their financial future.”
STASH’s roots are in its automated investment platform, which enables users to automate small dollar investments in 400 stocks and funds. But the firm has recently expanded into broader financial services, including banking and rewards programs for spending.
In 2019, STASH launched bank accounts. The company offers banking functionality common to challenger banks, including bill pay, money transfer and the ability to access paychecks up to two days early if users set up direct deposit. The company now has 750,000+ banking customers, as well as 4 million customers platform-wide. It’s adding roughly 5,000 new customers daily.
Nearly half of Stash’s customers sign up via word of mouth and referral. “By empowering a community to take an active role in their financial futures, we’ve created a movement and it has been pretty incredible to see,” Krieg said.
The company also introduced in 2019 an innovative rewards program tied to a debit card called Stock-Back Rewards. Instead of giving cash back or points, STASH users receive fractional shares in the companies they frequent, passively helping them to build a portfolio. As of November 2019, the company had issued more than five million Stock-Back rewards.
Also today, STASH is unveiling $0 minimums for investment accounts on the platform — targeting millions of Americans who aren’t serviced by traditional financial institutions.
“From day one, we’ve been laser-focused on increasing the everyday Americans’ access to financial services.,” said Krieg. “We believe every American deserves financial freedom and that means something different to everyone. That’s why we’ve built a holistic platform for all of our customers’ needs that also simplifies daily money management.”
With banking and Stock-Back Rewards live and growing, Stash has some new products in the pipeline coming soon.
“Changing peoples’ mindsets, getting them to think more holistically about their finances, and proving to them that financial stability and freedom are indeed possible, is our constant focus,” Krieg said.