After a boom in services during the coronavirus pandemic, fintech startup Plum raises $10M in new venture capital funding.
Plum Fintech is a London and Athens-based startup founded in 2017. It is an artificial intelligence assistant helping people manage their money and save more. It is disruptive in the sector for changing the way users interact with their finances. It does this through both AI and behavioural science, offering savings solutions in accordance with their bank transactions.
Crucially, its USP is allowing Plum users to save or invest. It claims to help save the average customer £230 annually by helping to switch household suppliers and gain better deals. All of this is in an effort to manage money in a “smart” way and make users more financially resilient.
Since its founding in 2016, Plum has raised nearly $20 million in funding. The most recent round is $10 million (just under £8 million) and is led by the European Bank for Reconstruction and Development as well as Japan’s Global Brain. They also received funding from the UK’s Future Fund scheme, part of the government-backed coronavirus support.
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How the App Works
Plum is linked to the user’s bank account and can access a range of data including savings, investments, utility bills and general transactions. The app then assesses all of these to help guide better financial decisions. The artificial intelligence aspect offers the best solutions based on what the user can afford. It puts money away each month to encourage regular saving. The app allows the option of opening an investment account based on themes. Not only this, but it can link all of your accounts. Another intelligent feature is the “splitter”, allowing you to split savings between savings and investments.
Next Steps for Plum Fintech
With the newly gained capital, Plum has plans to expand to Spain and France by the end of 2020. They already have over 1 million users in the UK and aim for 5 million across Europe by the end of 2021. Across London and Athens, Plum now boasts a workforce of over 60 employees. They plan to have this figure up to 80 employees by the end of the year.