Trio Bets on Higher Returns Over Deposit Insurance

Boston based fintech Trio is betting that customers would rather higher returns on their money versus deposit insurance as they look to offer younger customers investment flexibility; the company plans to launch in 2020 and their CEO says the company will never be a bank but is a software company; Neel Ganu, Trio’s Founder and CEO, tells American Banker, “The core problem we’re trying to solve is the majority of younger people don’t invest, and they state a range of reasons — risk, inertia, knowledge, wanting control over funds.”; they plan to use the account as a checking and investment account by offering exposure to S&P 500 ETFs, government bond ETFs and money market ETFs; there is a risk in the offering as Robinhood recently found but Trio plans to inform customers from the outset that the accounts are not insured. Source.

  • Todd Anderson

    Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.