Copper Banking, a digital bank for teens that helps them build financial literacy, today announced $4.3 million in seed funding, led by PSL Ventures , with participation from Jack Brody, of Snap Inc and Mana Ventures and Western Technology Investment. Copper includes an app for iPhone and Android and a debit card that connects parents and teens to teach teens how to make smart financial decisions.
“Schools have traditionally struggled to provide teens with a practical financial education leaving parents frustrated and teens unprepared to manage their money after leaving high school,” said Eddie Behringer, CEO and co-founder of Copper Banking. “We founded Copper to teach teens the fundamentals of money to keep them out of debt, afford the things they want, and ultimately set them up for long term financial success.
Today, nearly 20 percent of American teens fail to meet the level to be considered financially literate according to the Organisation for Economic Co-Operation and Development (OECD) and 72% of early adults surveyed by Merrill Lynch say they would benefit from more financial guidance. Copper Banking was founded by Eddie Behringer and Stefan Berglund with the vision of giving teens a practical, hands-on education in financial literacy. They previously founded Snap! Raise, a group fundraising platform that helps teens raise money for schools, and saw firsthand the need for Copper.
“Copper is uniquely positioned to build a digital bank that teens will actually love and use,” said Geoff Entress, Managing Director of PSL Ventures. “This team has also already proven that they know how to reach teens directly in high schools and those same high school students are telling us that the Copper app and debit card solves a real problem for them – getting money to and from their parents.”
According to a 2019 report from AppAnnie, in the US alone, 16-22-year-olds spend $44 billion annually and influence an estimated $600 billion in spending. However, a survey of 18-34 years old by Merrill Lynch found collectively this age group holds about $2 trillion of debt , and 70% rely on parents to support them financially. “We have seen first hand that teens are capable of doing incredible things from starting businesses and nonprofits to raising money for teams and schools, and yet, we also know that most teens leave high school without knowing the basics about managing their personal finances,” said Behringer. “We founded Copper to give teens a practical education in finance that will keep them out of debt, afford the things they want, and ultimately set them up for long-term financial success.”
Copper Banking launched in April 2019 and has already deployed a debit card that is being used by real users as a part of its beta rollout. During beta testing this past spring, Copper has proven the ability to successfully gain school-wide penetration within high schools. The company has built an advisory board of teens that are working alongside product and program development to ensure that Copper provides a successful and authentic way to educate teens about money. Financial experts Liz Frazier and Lily Lapenna also joined the company’s advisory board.
“As teens, we know how important it is to be smart with our money, but it’s not clear how to get started,” said Saumon Tahmassebi, an early user of the product and member of Copper’s Teen Advisory Board. “Copper has figured it out. They are building the learning experience directly into an app I can use every day to save, spend, and manage money with my parents.”
Copper Banking is FDIC insured and has all of the security and fraud prevention measures you would expect from any bank.
Learn more and join the waitlist by visiting https://www.getcopper.com/