Method Financial, an embedded repayment, data, balance transfers and automation through an API, has secured $16m in its Series A.
Andreessen Horowitz served as the lead investor, with commitments also coming from Truist Ventures, SV Angel, Abstract Ventures and many FinTech operators. Investors from Method’s seed round also committed capital, including Y Combinator, Ardent, Cameron Ventures, and Leonis Capital.
With this burst of capital, Method plans to hire more staff and bolster its mission. It is looking to launch new experiences and products that will tackle the consumer debt crisis and make personal finance autonomous.
The lightbulb moment for Method came in 2019 when the founders saw the hurdles when interfacing with users’ student loans.
In a blog post announcing the Series A, Method co-founder and CEO Jose Bethancourt said, “We dug deeper and learned that there is a systemic data and payment access problem across all types of liabilities. Ultimately, this has hurt millions of lower-income and under-online banked consumers to access a wide range of use cases that can help them holistically manage and improve their financial wellbeing.”
Fast forward to 2021, the founders established Method Financial to reduce the inequality gap by providing consumers with more competitive and affordable credit. Additionally, they hoped to better manage liabilities in one place by utilising tools typically reserved for financial professionals.
Since its launch in early 2022, Method has attracted 45 customers, including banks, credit unions and personal finance management apps.
Through Method, clients can create an end-user by entering their name and phone number. It will then retrieve all their liabilities and return real-time data for all liabilities for a user.
Andreessen Horowitz is no stranger to FinTech. Last year, the investor led the $16m seed round of Tellus, which serves as a smart savings platform powered by real estate.
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