One nets $40m in Series B funding to bring all-in-one banking to middle class

San Francisco and Sacramento-based financial technology company One raised $40m in Series B funding to expand its digital banking-related product offerings for the middle-class.

The round was led by Progressive Investment Company, with participation from Obvious Ventures, Foundation Capital, and Core Innovation Capital and others.

In March 2020, One closed its Series A funding round led by Foundation Capital, Core Innovation Capital and Obvious Ventures. Through the latest Series B funding, One aims to fuel its customer growth along with the scaling of the internal team.

The company intends to use the funds to accelerate customer growth, scale the internal team, and expand its product offerings.

Led by CEO Brian Hamilton, One is a financial technology company which provides families and individuals with an account combining saving, spending, sharing, budgeting, and borrowing. Since making its product generally available in September of 2020, the company has enhanced its core product offering, launching overdraft protection, an Auto-Save feature that rewards automatic savings contributions at 3.00% APY, cash flow-based Credit Lines that enables borrowing as low as 12% APR, and a Credit Builder product.

Traditional banking exists on a system of fractured accounts and billions of dollars in hidden fees that leave customers living paycheck to paycheck despite steady incomes. Americans typically need 5-7 accounts to manage their money. Aiming to solve these issues through technology, One delivers saving, spending, sharing, budgeting, and borrowing in a single account. One’s banking services are provided by Coastal Community Bank, Member FDIC. The startup emphasizes that it’s a financial technology company, and “not a bank.”

Commenting on the round, Hamilton said, “Stretched middle-income households and working families deal with financial stress on a daily basis and are largely unsupported by current offerings. Every day we are marching towards changing this landscape to better serve customers and challenge the antiquated practices and uncompetitive pricing of traditional banking products. One offers features that can make a lasting financial impact for hard-working people.”

One claims that it has helped its users automatically save nearly $20m collectively since its launch, a number that grows daily.

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