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HM Bradley raises $3.5M for high-yield digital banking platform backed by PayPal founder Levchin

Published

Nov. 6, 2019

HM Bradley, a startup backed by PayPal founder Max Levchin, said it raised $3.5 million in a seed round led by Accomplish Ventures and Walabout Ventures to launch a digital banking platform that will offer up to an industry leading 3% APY that rewards members that save a portion of their monthly deposits. 

The digital banking platform offers a tiered incentive system for members who get paid a higher level of interest for customers who save a higher percentage of their direct deposits rather than spending the money. 

"Ultimately we are thinking about this in an entirely different way," co-founder and CEO Zach Bruhnke told Mobile Payments Today via email. "We want to encourage users to save. We feel strongly about this because the reality is most people get rich slowly over a long period of time by building the right habits and exhibiting responsible behavior."

The startup will offer a combined checking and savings account, access to 55,000 no-fee ATMs through the Star Network and a debit card that can be instantly linked to Apple Pay or a mobile wallet of choice. 

The savings tiers pay as follows: 

  • Tier 4 pays 1% APY for members who save 5% to 10% of direct deposits.
  • Tier 3 pays 1.5% APY for members who save 10% to 15% of direct deposits.
  • Tier 2 pays 2.25% APY for members who save 15% to 20% of direct deposits.
  • Tier 1 pays 3% APY for members who save 20% or more of their direct deposits.

The platform is opening online registration today and is scheduled to launch in 2020. 

The co-founders of the bank include COO Dmitry Gritskevich, a former Goldman Sachs banker, and Germain Cassiere, an engineer who worked with Bruhnke, a serial entrepreneur and former investment bank executive. 

Besides the lead investors, the startup received funding from Mucker Capital, Index Ventures and other firms, including HVF Labs, which is a startup studio backed by Levchin that has helped launch firms like Yelp, Affirm and Divvy Homes.

The bank is FDIC insured up to $250,000 through an affiliation with another U.S. bank, which has not yet been disclosed. The accounts will offer remote deposit capture and electronic bill payment. 

Cover image: HM Bradley.