Communion, the new FinTech brainchild of ex-Habito CEO Daniel Hegarty, is stepping into the spotlight, armed with a mission to revolutionise how millennials approach savings.
The company recently celebrated securing £2.5m in a pre-seed funding round, according to a report from Sifted.
Key contributors to this impressive haul included Revolut backers Target Global and a selection of esteemed angel investors: Max Rofagha, the founder of Finimize; Greg Marsh, founder of the personal finance app Nous; and Erin Lantz from Softbank-supported InsurTech, Ethos.
Diving deeper into what Communion offers, it stands out as a blend between an easy-access savings account and a financial education app. At its core, it promises a straightforward savings account boasting an impressive 3.66% AER, accessible primarily for iPhone users, with Android users soon to be included.
However, it’s not just about the savings. New users undergo an “initiation phase,” which involves committing £1 a day for 10 days. Successful completion grants them access to a collection of concise educational videos from Hegarty, focusing on prudent savings techniques. Additionally, a live chat feature connects users to a dedicated team of ‘Money Guides’, offering tailored savings advice.
The purpose behind the recently raised funds is evident. Communion aims to pull ahead in a saturated market with an enticing customer acquisition strategy. By introducing a ‘top up’ feature, members can earn an extra 2% on their already promising 3.66% AER by inviting friends to the app. Successfully enlisted friends receive a 0.2% bonus, and the cycle continues. This technique could potentially catapult the savings rate to a market-leading 5.66% AER.
Previously, Hegarty’s influence in the FinTech space was evident with his role at digital mortgage broker Habito. This isn’t the first time he has attracted significant investment; his tenure at Habito had several successful funding rounds.
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