Less than six months after launching to the public and announcing a $7.5 million seed raise, a startup providing banking services to Americans over the age of 62 has raised additional funding. The days of closing two capital raises in a matter of months are mostly long gone, so it naturally caught our attention when Charlie reached out to share that it has secured $16 million in Series A funding and $7 million in debt financing.
TTV Capital Leads the Latest Round
TTV Capital led the latest round, which also included participation from FPV Ventures and existing backer Better Tomorrow Ventures, among others. Kevin Nazemi, co-founder and CEO of Charlie, founded Charlie in late 2021 with the mission of "transforming" financial services for the 62+ community.
Acquiring Thousands of Customers Across All 50 States
Since its launch in May, Charlie has acquired several thousand customers in all 50 states, Nazemi said. "Whenever you launch a new company, it’s nerve-wracking," he told TechCrunch. "There was a collective sigh of relief when we saw so many customers signing up and we knew our approach…was resonating."
Features that Set Charlie Apart
Features include faster access to their Social Security checks, 3% earnings on balances and no monthly fees or minimums. The company says users will one day also be able to get "frictionless, embarrassment-free discounts" just by using their debit cards, according to Nazemi, so they don’t have to do things like show an AARP card or their ID to prove they are seniors.
Addressing the Unique Financial Needs of Seniors
Like many fintechs, Charlie is not a bank — its banking partner is Sutton Bank, which insures all deposits up to $250,000. "Over 50% of the 73 million seniors in the United States do not feel prepared financially for retirement, and for too long, their unique financial needs have been neglected," he said. "Charlie is designed to meaningfully address the many challenges this community faces, such as rampant financial fraud, shifting from accumulating assets to de-accumulation and a lack of transparency, control, and trust with most financial services products they encounter."
Addressing the Challenges of De-Accumulation
One of the things Charlie is designed to address is the fact that until a person retires, they are accumulating assets. But once they retire, they go into "de-accumulation mode." That can be scary and challenging. To help older adults adjust, Charlie says all customers who signed up after September 1 can withdraw their Social Security benefit 3-5 days early (those who signed up before can withdraw it in one day).
The Benefits of Early Access to Social Security Benefits
Early access to Social Security benefits can be a game-changer for seniors. It allows them to have more control over their finances and make informed decisions about how to use their money. Charlie’s approach is designed to provide seniors with the flexibility they need to manage their finances effectively.
The Importance of Transparency and Control
Charlie’s mission is to provide transparency and control in financial services for seniors. The company’s approach is centered around empowering seniors to make informed decisions about their finances. By providing easy access to their Social Security benefits, Charlie aims to give seniors more confidence in managing their money.
The Future of Financial Services for Seniors
Charlie’s innovative approach has the potential to revolutionize the way financial services are delivered to seniors. With its focus on transparency and control, Charlie is well-positioned to address the unique financial needs of this community. As the fintech industry continues to evolve, it will be exciting to see how companies like Charlie continue to push the boundaries of what is possible.
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