FinTech startup Tally, the company behind the world’s first autonomous debt manager, raised $50 million in Series C funding to further their quest to automate consumers’ finances.
In a blog post, CEO Jason Brown said that the stress and anxiety around credit cards pushed him and Jasper Platz, his co-founder, to find a solution that was accessible to the average person.
“We quickly learned people don’t want to worry about the best way to pay down their debt — they just want it done,” he wrote. “That’s why money managers exist. But the reality is most people don’t have the luxury of hiring others to handle their finances for them. With mobile wallets and mobile banking hitting the mainstream, plus consumers’ growing openness to autonomous services, Jasper and I knew it was the perfect time to level the playing field, and the idea for Tally was born.”
Jason also realised that the stress surrounding credit card debt is not related to the money itself, but rather the fear that we don’t “have the tools necessary to counteract and protect [ourselves].” By automating the debt payment process, users are freed from the constant emotion burden of credit card debt and are encouraged to keep using the app.
In October 2018, Jason gave a keynote address at the Fintech Inclusion Summit in San Francisco about the future of consumer finance and the importance of automation.
“I think Jason hit the nail on the head,” said Rex Salisbury, founder of Fintech Devs & PMs, after Jason’s speech. “The only way to deliver real value for people is to focus on doing the work for people. Rich people already have this because they can hire humans. The only way the rest of us will get access to a similar level of services is with access to something with a lower marginal cost than human labor.”
By using algorithms to include factors such as a user’s income, spending and total debt, the platform sets a realistic date to become debt-free.
Angela Strange, an investor at top venture capital firm Andreessen Horowitz, led the $50 million funding round for the consumer-focused FinTech startup.
“The thing that popped about Tally is it has the best retention of almost any financial services app, but also of almost any consumer app,” she said in a Fortune article. “It relieves anxiety and people become hooked.”
While Tally started with credit cards, the startup is quickly expanding to help users automate other components of their financial lives. In addition to being a credit card manager, debt manager and a resource for late fee protection and a line of credit, the startup has also recently launched a free automated savings programme, Tally Save. The initiative gives users points for positive financial behaviors, such as saving and paying off credit card debt. These points can be used for gift cards or to benefit a charity.
“Our view is that, in the future, you will have a completely invisible and ambient service that will mediate your entire financial life on your behalf,” Jason explained.