One Finance Closes $40M Series B Funding Round

To help its mission of reinventing “everyday finance,” FinTech One has closed a $40 million Series B funding round, according to an announcement from One Founder and CEO Brian Hamilton.

The round, which included investments from Progressive, Foundation Capital, Obvious Ventures, Core Innovation Capital and others, will help One “build upon the feedback from our early customers to innovate on the financial products that mean the most to them,” Hamilton said in the announcement.

The money will help One with its growth plans, including scaling its internal teams and expanding its product offerings “to make a lasting financial impact on the middle class and beyond,” according to the announcement.

One has built overdraft protection, an auto-save feature that rewards automatic savings contributions, cash flow-based credit lines and a credit builder product into its platform, the announcement stated.

“We wake up every day committed to building a company that truly has the best interests of our customers in mind,” Hamilton said in the announcement. “We promise to relentlessly innovate to deliver a product that actually does some good and is also delightful to use. We’ll do this because we set out to do it, and we believe the world needs it.”

Hamilton told PYMNTS last fall that middle-class consumers are feeling that they’re getting the short end of the stick when it comes to their relationships with traditional banks, but 97 percent of them continue to bank with traditional players.

Read more: Why One Says Middle-Class Americans Need A New Bank

Getting those consumers to move their primary financial relationships to digital challenger banks is about making them believe that their money will be safe and that making a switch will improve their financial management experiences, Hamilton said.

He said he believes that challenger banks aren’t offering enough in their unbundled offerings to make financially established consumers take that leap of faith. One is hoping it can change that with a new type of digital challenger bank designed specifically to meet the needs of the middle-income consumer.