Step is a mobile banking platform designed specifically for teenagers, enabling them to build credit history and manage their finances through a secure app. The service offers features such as cashback rewards on purchases and a high-yield savings account, addressing the need for accessible financial education and responsible money management for young users.
Funding
$176.3M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
EBTCFounders
Product
Problem
Many teenagers and young adults lack access to financial tools that help them build credit and manage their finances responsibly. Traditional banking services often come with fees and complexities that are not suitable for young users who are just starting to learn about financial management. This lack of access can hinder their ability to establish a positive credit history early in life.
Solution
Step provides a mobile banking platform designed to help teenagers and young adults build credit and manage their finances through a secure and user-friendly app. The platform offers a secured Visa card that allows users to establish credit history, along with features like cashback rewards on purchases and a high-yield savings account. Step aims to provide accessible financial education and promote responsible money management for young users, enabling them to build a strong financial foundation. The platform also offers early access to direct deposit funds and the ability to send money to friends, similar to Venmo.
Target Audience
Step primarily targets teenagers and young adults aged 13-20s who are looking to build credit, manage their finances, and gain financial literacy through a mobile-first platform.
Features
- Secured Visa card designed to build positive credit history, reported to TransUnion, Experian, and/or Equifax
- FDIC-insured bank accounts up to $1,000,000 for eligible Step Black users
- Cashback rewards on purchases, with up to 8% cashback on select Step Black partners
- High-yield savings account with a savings rate significantly higher than the national average for Step Black members
- EarlyPay feature providing early access to direct deposit funds, up to 2 days earlier than the scheduled payment date
- Venmo-like functionality for sending and receiving money with friends
- Step Mobile offering ultra unlimited phone plans
- Investment advisory services for purchasing and selling stocks (including certain ETFs) through Step Advisers LLC