Originally posted on FloatMe by Cofounder Joshua Sanchez.
Since 2020, FloatMe has been focused on making financial prosperity equitable by putting our members’ best financial interest first. It’s something that’s been my #1 priority since we launched, because I know all too well what it’s like to manage unexpected costs on a tight budget. And it was rough.
For people who don’t live paycheck-to-paycheck, a surprise bill can be annoying, yet it’s unlikely that it will create panic or eliminate an entire savings. It gets paid and then people move on. For those who don’t have that luxury, they are faced with a very different dilemma. Pay the bill, or take the basics off the shopping list for the foreseeable future? Get hit with a $35 overdraft fee or take out a high interest payday loan?
FloatMe lends them a hand. And, the impacts are real.
For the team at FloatMe And for thousands of folks we’ve helped who need a small loan to make ends meet.
We are incredibly excited to have such an exceptional group involved in this round. It was led by Foundry Group with participation from ManchesterStory, Active Capital, Samsung Ventures, and notable fintech leaders including Michal Cieplinski from Pipe, Jordan Wright from Atomic, and John Henry from Loop. This funding will help us continue to grow the team and to build more products and services to help our members.
Their vision is turning a negative connotation into one that not only helps short-term borrowers, but builds their credit and provides financial education.
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Fintech startups are increasingly leaning into lending for the more than one-third of Americans with subprime credit scores. Their vision is to turn a negative connotation into one that not only helps short-term borrowers, but builds their credit and provides financial education.
“The problem at large is there are no alternatives to payday loans,” Sanchez told Crunchbase News. “Overdraft fees are also a huge problem. Even during the pandemic, banks were charging overdraft fees knowing that people lost their jobs.”
In 2019, about 37 percent of Americans reported they didn’t have enough to cover a $400 emergency expense, according to the Federal Reserve…