Qapital, a New Everyday Banking App, Lets Debt-Burdened Millennials Save Small While Living Large

by Tom Smith

Qapital, a new mobile-first banking app dedicated to changing the way that young professionals and millennials save and spend. Millennials are more credit-shy and debt-burdened than their parents, and the ongoing fallout of the Great Recession has diminished their trust in conventional banking. Qapital uses gamified, automatic savings to allow its customers set aside small amounts of money regularly, so they can have the things they want — without relying on credit.

Customers can create a unique and fun (yes, fun) savings plan that blends seamlessly into their lifestyle. The product enables them to set up “rules” that trigger automatic savings for a specific goal. As an example, every time a Qapital user resists the temptation to buy a latte, she can trigger the app to put the equivalent cost into an FDIC-backed Qapital account. Users can direct these savings toward a goal of their choosing, such as a trip to Paris or a security deposit on a new apartment, or set them aside as a rainy-day fund.

“We wanted to create the first truly well-designed, transparent, mobile-first banking app,” said Qapital CEO and co-founder George Friedman. “People who are seeking a new approach to personal finance can create their own rules for saving that compliments the way they live their life.”

A marriage of technology, banking, and design

Qapital has created a banking app that combines beautiful design with cutting-edge financial technology. Its founders have deep roots in international banking and financial services, including leading roles at Avanza (Sweden’s largest online brokerage bank) and Asian banking giant Nomura. Its designers have all worked at the award-winning design firm Doberman. Qapital’s vibrant color scheme echoes Swedish banknotes, a nod to the company’s roots and its ethos of transparency.

Qapital is powered by Plaid, a San Francisco–based API that aggregates financial-account data, and by Social Money, a financial-processing technology company. Qapital accounts are held by Iowa-based Lincoln Savings Bank, a well-regarded 115-year-old institution and member of the FDIC. Qapital has received funding from Northzone, a venture capital and investment firm with stakes in over 100 groundbreaking and technology enabled-companies, including the music service Spotify.

“Qapital is the way an everyday banking service should work — all mobile, sleek, and intuitive,” says Par-Jorgen Parson, a Northzone partner and Qapital board member. “It will help you track your spending habits, make your money last even as you spend, and still meet targets that let you save up for whatever special thing you want.”

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