The German company Finanzguru announced that it managed to attract investment funds for $ 14 million following the results of the next round of financing led by PayPal Ventures.
This company is based in Frankfurt am Main. The firm offers consumers an application for financial advice and banking services. The company intends to direct investment funds to the implementation of solutions for the development of the application and the expansion of the staff.
Finanzguru started its activity in 2018 as a multibank application. Since then, the firm has evolved significantly in terms of capabilities. Currently, the company provides customers with technological solutions that allow them to manage all bank accounts and contracts. Also, using the application, users can get insurance advice on financial products.
Benjamin Michel, co-founder and co-CEO of the company, stated that by adding personal financial advice to the application, the firm meets the real need of the German consumer market. He also noted that this decision allowed the company to significantly expand its business over the past 18 months.
Director of PayPal Ventures Alexandros Bottenbruch says that Finanzguru has developed an open banking solution based on data, which facilitates access to financial well-being and eliminates the difficulties in managing personal finances.
Recently, there has been an increase in the number of products that are designed to improve financial well-being. For example, a feature has appeared in the Cash App, with which customers can make savings using a separate balance, set savings goals, and round up the purchase amounts. Klarna has added a feature to its BNPL app that simplifies money management by visualizing spending habits and providing animated quizzes and data on all expenses.
The practice of using digital educational tips and tools indicates that such solutions contribute to increasing the level of loyalty on the part of customers. For this reason, there are grounds to define budget assistance and other similar offers as a competitive advantage.
Such solutions are in demand from consumers with different income levels. Experts believe that it is advantageous for novice digital financial service providers to cooperate with the most financially secure group of potential customers.
Rational use of the budget is an urgent need. For example, in the United States at the end of 2022, 16% of high-income financial service consumers reported material difficulties.
As we have reported earlier, Private Banking Startup Kashet Raises £5.4 Million.