HMBradley Series-A

This is the HMBradley pitch deck to raise a $18.3m series-a round in 2020.

About

HMBradley is a developer of a digital banking platform for savers. It rewards everyone, regardless of income, for developing sound financial habits. HMBradley ‘s platform offers digitized banking services featuring virtual banking technologies that let users get credit cards instantly and enjoy banking facilities anytime via a smartphone application.

The company was founded in 2019 and is headquartered in Santa Monica, California.

Consumers are getting used to the idea of branch-less banking, a trend that startup digital-only banks like Chime, N26, and Varo have benefited from.

The market for these so-called ‘challenger banks’ has exploded in recent years as customers are drawn to seamless account openings and optimized user experiences on their apps and websites.

The majority of these fintechs target those who are underbanked, and rely on usage of their debit cards to make money off interchange. But fellow startup HMBradley has a different business model.

“Our thesis going in was that we don’t swipe our debit cards all that often, and we don’t think the customer base that we’re focusing on does either,” Zach Bruhnke, cofounder and CEO of HMBradley, told Business Insider. “A lot of our customer base uses credit cards on a daily basis.”

Instead, the startup is aiming to build clientele with stable deposits. As a result, the bank is offering interest-rate tiers depending on how much a customer saves of their direct deposit.

Customers can achieve as high as a 3% annual percentage yield if they save 20% of their deposits during a quarter. The current national average savings rate is 0.05%, according to the FDIC.

Notably, the rate tiers are dependent on the percentage of savings, not the net amount.

“We’ll pay you more when you save more of what comes in,” Bruhnke said. “We didn’t want to segment customers by how much money they had. So it was always going to be about a percentage of income. That was really important to us.”

On Tuesday the bank announced it surpassed $90 million in deposits en route to closing a $18.25 million Series A. The round was led by Acrew Capital, which has also invested in Chime.

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