M1 Finance takes on banks with new checking account
Chicago-based M1 Finance is another firm taking on the big banks with plans to launch a checking (or current) account and debit card that integrates in its current app.
The third pillar of its grand fintech dream
Coming in a few months, and called M1 Spend, it will allow users to directly deposit their salary into M1, pay bills, and spend money with an M1 Visa debit card. It’s also launching a premium version with interest and cash back on purchases. In its view, this is “one account that does it all”.
In a swipe at rivals, Brian Barnes, M1’s founder and CEO, says: “Unlike current checking accounts, your money is not confined to sit idle as ‘cash’, earning next to nothing.”
Instead, excess money is automatically put into investments to “capture its full potential”.
Users can choose their own stocks or funds or select from curated options. They can also use money as an asset to back up a line of credit to offer liquidity of those investments.
Barnes explains: “We’ve built and launched two of the three pillars in M1 to make this a reality.”
Namely, M1 Invest for a custom portfolio and M1 Borrow for a line of credit. M1 Spend, when launched, will complete the foundation of its money management account.
All three will be integrated within the app, and money can move instantaneously between all three.
M1 Spend will be Federal Deposit Insurance Corporation (FDIC) insured as the money in the account will be held with Lincoln Savings Bank.
It may want to be number one, but M1 will have competition from all the other challenger banks in the US. Check out our list here.
