pockid, a banking app that labels itself as the first dedicated banking app for Generation Z customers, has snapped up $4m from a seed funding round.
The seed funding raise was led by Cavalry Ventures and including participation from Vorwerk Ventures.
Launched in June this year, Hamburg-based pockid describes itself as the first dedicated banking app for young people. The company offers a bank account with a virtual and physical debit Mastercard.
The app – run on iOS and Android – claims it is the first ‘Gen Z Neobank’ that enables young people to independently pursue their hobbies and meet their needs. The firm said it replaces complex account opening processes for under-18s with a fully digital onboarding process that enables users to open an account in just a few minutes.
The pockid account works on a prepaid basis, therefore it cannot be overdrawn. For those aged under 18, parents are able to receive a separate overview of their child’s account in order to provide security without giving them every detail of their children’s transactions.
To better inform its young users, the company also offers categorisation of transactions in the app to help young people get to grips with their finances.
According to pockid, it will use the newly raised capital to ‘implement new features relevant to target groups’ and will also further develop its product and continue building up its community. The neobank is also looking to expand its team as it looks to enter new markets outside of its home market of Germany.
The company added that its goal is to develop the bank account with Mastercard into an everyday ‘digital enabler’ and to create added value particularly in the area of gaming and social commerce.
pockid CEO and co-founder Jes Henning said, “Gen Zs are socialized with in-game purchases, subscription services and e-commerce transactions. However, they have little opportunity to meet their own digital needs with existing solutions, such as the Girocard. In a survey we conducted, we found out that more than one in three German teenagers has already forged an online payment service.
“At the same time, German young people have some of the highest disposable income in the world. We want to take advantage of this opportunity and offer added value. We are very happy to have Cavalry Ventures and Vorwerk Ventures on board, two strong VCs that support us in getting closer to our vision ‘Empower Europe’s young generation to become financially independent.”
Pockid CMO and co-founder Max Schwarz added, “Gen Z has a keen sense of how authentically brands communicate and act. We take this honest and direct feedback very seriously and attach great importance to close and constant exchange. This is how we were able to build up an active community in just a few months. Our users use account & Mastercard frequently and are also very happy to recommend it to others, without us currently incentivizing this. In order to continue to be as authentic as possible, we rely on a young, diverse team and a close exchange with the target group.”
A quarterly report earlier this year by buy now, pay later (BNPL) business Afterpay has estimated that spending share by Millennials and Gen Z will grow to almost 50% by 2030.
Copyright © 2021 FinTech Global
