Qoins, a personal finance platform focused on automated debt management and financial goal planning received an investment from Vested Ventures, the investment arm of Vested Communications, a financial PR and marketing agency in New York.
The investment will help scale Qoins’s platform and create additional functionalities that fulfill the organization’s mission of providing underrepresented communities with education and tools to pay off debt and plan for long-term financial goals. On the platform, users select whether they’re looking to pay down debt or work toward a specific savings goal, then Qoins automates the process through offering the ability to round up credit and debit payments, or having regular withdrawals made from accounts or paychecks. Once goal thresholds are met, Qoins automatically transfers collected funds to make additional payments toward debt or savings accounts.
Since its founding, Qoins has helped its customers pay off over $30 million of debt. In the coming months, the organization will be rolling out a new product to make an even larger impact. The Qoins Card is a debit card that offers a unique rewards system wherein participating merchants contribute cash back toward paying down cardholders’ debt accounts. An FDIC-insured debit account, the Qoins Card will offer all standard debit card features including easy account transfers, automated bill pay, mobile check deposit, overdraft protection, and ATM access.
In a recent meet-and-greet with Vested team members, Qoins Co-founder and CEO Christian Zimmerman explained the inspiration behind the startup’s mission and focus on creating financial freedom from debt and planning for life’s big milestones. “Debt disproportionately affects minorities. I try to be as open, as out there as I can because I’m Latino. I’m able to share my story and I’m very transparent about where I came from, the mistakes that I have made that many people make. … We’re trying to give as much information out as we can and provide access to education around financial literacy,” said Zimmerman.
Noting that everyone can benefit from effective debt planning, Zimmerman highlighted the key principle behind Qoins is automation. “We believe the three pillars of personal finance are automation, education, and recommendation. We focus on the automation piece. How do we automate the habit of paying down debts faster without having to think about it?”