Introduction to Stash
Personal finance has always been a complex and daunting subject, but with the advent of FinTech, managing your money has become more accessible than ever. One such FinTech startup that has been making waves in the industry is Stash.
Founded in 2015, Stash aims to empower regular people to invest and grow their money through its innovative platform. In this article, we will take a deep dive in
to Stash and explore its various financial products and revenue streams.
We will also examine the features that make Stash stand out from other FinTech companies and how they can help you manage your finances more effectively.
Financial Products Offered
At its core, Stash is an investment platform that provides users with a range of investment options, including stocks, ETFs, and bonds. Users can buy fractional shares, which means they can invest in companies they admire without having to spend a large sum of money.
In addition to investing, Stash offers other financial products such as savings accounts, checking accounts, and custodial accounts. Users can also enroll in Stash’s subscription plans to unlock additional features, such as personalized investment advice and cashback rewards on their purchases.
Stash’s subscription plans are designed to cater to users with different investment goals and levels of expertise. The plans range from $1 to $9 per month and offer various benefits such as access to exclusive content, a higher cashback rate, and a personal investment coach.
Revenue Streams
Stash generates revenue primarily through its subscription plans and payment for order flow. Payment for order flow is a practice wherein a broker-dealer receives payment for routing orders to market makers or exchanges that offer the best execution price for the trade.
This practice has been the subject of controversy in recent years, but Stash maintains that it is a legitimate and important revenue source for the company. Stash also generates revenue through interest on its users’ uninvested cash balances.
Stash partners with banks to offer users a savings account where they can earn interest on their cash balances. Stash makes money by taking a cut of the interest earned by its users.
Company History
Stash was founded in 2015 by Brandon Krieg and Ed Robinson, two former executives at E-Trade. The company started with the mission to democratize access to investments and make it easier for regular people to grow their money.
Today, Stash has over four million users and is valued at over $500 million. Stash has received backing from high-profile investors such as Valentino, Breyer Capital, and T.
Rowe Price. Stash’s investors believe in the company’s mission to make investing accessible to everyone, and they see immense potential in its innovative platform.
Features of Stash
Investment Options
Stash offers a diverse range of investment options, including stocks, exchange-traded funds (ETFs), bonds, and more. Users can invest in fractional shares, which means they can invest in individual stocks without having to buy a whole share.
This feature is particularly useful for users who want to invest in expensive stocks such as Amazon or Tesla.
Personalized Investment Advice
Stash offers personalized investment advice to its users based on their investment goals and risk tolerance. Users can answer a series of questions to get recommendations on which stocks or ETFs to invest in.
Stash’s investment advisors use a combination of algorithms and human expertise to provide personalized investment advice to its users.
Stock-Back Card
Stash also offers a debit card called the Stock-Back card, which lets users earn stocks or ETFs when they spend money. Users can earn a percentage of their purchases back in the form of stocks or ETFs, which can be a great way to build a diversified investment portfolio over time.
Retirement Accounts
Stash offers Individual
Retirement Accounts (IRAs) to help users save for their retirement. Users can choose from Traditional, Roth, or SEP IRAs, depending on their investment goals and tax situation.
Life Insurance
Stash also offers life insurance policies from Haven Life to help users protect their loved ones in case of an unforeseen event. Users can apply for a policy through the Stash app and get approved in minutes.
Child Custodial Accounts
Stash offers custodial accounts for parents who want to invest on behalf of their children. These accounts are a great way to start investing in your child’s future, as the money invested can grow over time.
Savings Feature
Stash offers a savings account feature that lets users earn interest on their uninvested cash balances. Users can link their checking account to their Stash account and transfer money back and forth as needed.
In conclusion, Stash is one of the most innovative and accessible FinTech companies out there today. Its investment platform, subscription plans, and various financial products are designed to cater to users with different investment goals and levels of expertise.
Whether you’re a seasoned investor or just starting, Stash has something to offer. If you want to take control of your finances and invest in your future, Stash is the platform for you.
Company History of Stash
Stash was founded in 2015 by Brandon Krieg and Ed Robinson, both former executives at E-Trade, and David Ronick, a serial entrepreneur who previously built companies in the finance and education sectors. The three founders met while attending business school at Harvard University and shared a passion for making investing more accessible to everyone.
In the early days of Stash, the founders focused on building a user-friendly platform that would educate customers about investing and provide them with a range of investment options. They started with exchange-traded funds (ETFs), which are baskets of stocks that track specific indices.
ETFs are a popular investment option because they offer diversification and lower fees than individual stocks. To encourage customer education, Stash developed a feature called “Learn,” which provides educational content on a range of personal finance topics.
The Learn feature includes articles, videos, and quizzes designed to help customers understand investing concepts and make informed decisions. As Stash gained traction, the company introduced several strategic twists to fuel its growth.
One such twist was the introduction of subscription plans, which provide users with additional features such as personalized investment advice, higher cashback rewards, and access to exclusive content. Stash’s subscription plans start at just $1 per month and increase in price and features as customers move up the ladder.
The plans have been a significant source of revenue for the company and have helped it differentiate itself from competitors. Another twist for growth was the introduction of Au
to Stash, a feature that automatically invests a portion of a customer’s funds in pre-selected investments.
Au
to Stash was designed to make investing even more accessible for customers who might not have the time or confidence to invest on their own. More recently, the coronavirus pandemic has presented both challenges and opportunities for Stash.
On the one hand, the pandemic has caused significant market volatility and uncertainty, which can be daunting for investors. On the other hand, the pandemic has also created a surge of interest in personal finance and investing, as people seek to take control of their finances in uncertain times.
Despite the challenges of the pandemic, Stash has continued to grow its assets under management (AUM). As of 2021, Stash has over $1.4 billion in AUM and more than 5 million users.
The company’s focus on customer education, subscription plans, and innovative features has helped it become one of the fastest-growing FinTech companies in the world.
Revenue Streams of Stash
Stash generates revenue through several different channels, including subscription plans, cashback rewards, payment for order flow, and interest on cash. Subscription plans are a significant source of revenue for Stash.
The company’s subscription plans range from $1 to $9 per month and offer users access to additional features and benefits. These plans have proved popular with customers and have helped Stash differentiate itself from competitors.
Cashback rewards are another way in which Stash generates revenue. Stash has partnered with over 15,000 merchants to offer customers cashback rewards on their purchases.
Stash takes a percentage of the cashback rewards earned by users as a commission. Payment for order flow is a practice wherein a broker-dealer receives payment for routing orders to market makers or exchanges that offer the best execution price for the trade.
Payment for order flow has been a subject of controversy in recent years, but Stash maintains that it is a legitimate and important revenue source for the company. Stash also generates revenue through interest on its users’ uninvested cash balances.
Stash partners with banks to offer users a savings account where they can earn interest on their cash balances. Stash takes a cut of the interest earned by its users as a commission.
Finally, Stash generates revenue through referral fees from its partners. Stash has partnerships with various financial institutions, such as Robinhood and Green Dot, and receives a referral fee every time a user signs up for one of these partner services through the Stash platform.
In conclusion, Stash’s innovative platform, subscription plans, and educational features have helped it become one of the fastest-growing FinTech companies in the world. Stash’s revenue streams, which include subscription plans, cashback rewards, payment for order flow, interest on cash, and referral fees, have helped it achieve financial sustainability and fuel its growth.
As Stash continues to innovate and expand its product offerings, it is likely to remain a major player in the FinTech space for years to come. Stash is a FinTech company founded in 2015 with a mission to simplify investing and make it accessible to everyone.
Stash offers a range of financial products, including investment options, savings accounts, retirement accounts, and life insurance policies. Stash generates revenue through its subscription plans, cashback rewards, payment for order flow, interest on cash, and referral fees.
With innovative features such as personalized investment advice, Au
to Stash, and the Stock-Back card, Stash stands out as a FinTech disruptor. Stash’s commitment to customer education and accessibility has helped it achieve financial sustainability and become one of the fastest-growing FinTech companies in the world.