One, the middle class-focused digital banking startup founded by former PayPal and Intuit CEO Bill Harris, has raised $40 million in a Series B funding round led by Progressive Investment Company.
Obvious Ventures, Foundation Capital, and Core Innovation Capital joined the round for One, which is targeting an underserved market segment: middle class Americans.
One argues that traditional banking exists on a system of fractured accounts and billions of dollars in hidden fees that leave customers living paycheck to paycheck despite steady incomes. Americans typically need five to seven accounts to manage their money.
Launched last September, One is built on a proprietary technology core delivering saving, spending, sharing, budgeting, and borrowing in a single account. The product includes overdraft protection, an auto save feature, cash flow-based credit lines that enables borrowing as low as 12% APR, and a credit builder product.
The new funding will be used to fuel customer growth, scaling of the internal team, and expansion of One's product offerings.
Says Harris: "Stretched middle-income households and working families deal with financial stress on a daily basis and are largely unsupported by current offerings.
"Every day we are marching towards changing this landscape to better serve customers and challenge the antiquated practices and uncompetitive pricing of traditional banking products.