The economic unrest resulting from the COVID-19 pandemic prompted a lot of people to start taking their finances more seriously. For many people, that meant relying on services provided by fintech companies like Chime, Mint or Robinhood, whether that meant paying closer attention to their money or actively investing.
Now, a new fintech startup out of Kirkland wants to make sure people have enough saved up to get through an emergency.
Secure launched in late November after spinning out of Pioneer Square Labs. The startup created a platform that allows employers and employees to start emergency savings accounts, which can be accessed in case a surprise expense pops up. The company makes it easy to integrate this account with payroll, so it can automatically divert money and build savings. The platform also allows employers to match deposits as an employee benefit, which further promotes healthy financial habits.
This week, Secure announced that it raised $3.5 million in a seed funding round, which was led by SeaChange Fund. PSL Ventures, IA Ventures and Bloom Capital also participated in the round.
The company cites a savings crisis in the United States as the reason for its launch. According to the Federal Reserve, 40 percent of Americans are unable to afford an emergency $400 expense. On top of that, financial troubles are the No. 1 cause of stress and distraction at work, according to PWC.
Employer emergency savings programs are an opportunity to help remedy this financial burden.
“Employer emergency savings programs have the power to change the way employees face financial stress and uncertainty by giving them the tools they need to create financial peace of mind. This benefit is a low-cost, easy-to-maintain program that will have a big impact on employees so they can focus their efforts on doing their jobs well,” Secure CEO Devin Miller said in a statement.
Secure says it will begin to roll out its emergency savings program with a few early employers in Q1 2021. It expects more to join as well, now that enrollment is open for all employers through its website. This new seed round will help the company as it gets the ball rolling.
“Emergency savings has never been more important, or top of mind, as leading employers look to better support employees during these uncertain times,” Miller said in a statement. “Our goal is to make Secure the market leader in emergency savings by fulfilling our mission of helping people save for the unexpected and helping them better navigate financial hardships.”
