What do you get when you combine two Wall Street veterans determined to build a better financial services industry?
In the case of co-founders Ed Robinson and Brandon Krieg, you get Stash.
Stash is a unicorn that has been named to the Fintech 50 by Forbes and is aiming to empower everyday Americans to build long-term wealth and help close the wealth gap in the U.S. For a flat monthly subscription, its platform gives investors — 95 percent of whom are beginners — access to fractional shares, IRAs, life insurance, and their own banking accounts and debit cards. The company has $456 million in funding and its latest valuation is $1.4 billion, according to Forbes.
Though already making its mark on fintech, Stash is the antithesis of the brutish, risky Wall Street culture represented in cinema. This becomes especially apparent in a 2020 reaction video where the founding duo watch big-screen depictions of investment culture in “Wolf of Wall Street,” “Boiler Room” and “The Big Short.” In it, Krieg and Robinson, who spent decades in electronic trading, sum up their feelings about Wall Street.
“It really highlights the zero-sum game of trading. For every winner, there’s going to be a loser, especially in day trading,” said Robinson. “Stash was built for the long-term.”
The Stats That Drive Stash
- The majority of Americans live paycheck to paycheck
- Roughly 60% of Americans can’t access $1,000 in an emergency
- Around 44% of Americans do not own any stock
Beyond the technical features, education and financial literacy are built into the platform to help customers overcome the complexity of investing. Every day new financial technologies are offering market access, but according to Robinson, “access and guidance are two very different promises.”
“We believe it’s our responsibility to create a personalized platform that guides and educates the American middle class to build wealth in a safer way,” said Robinson. “It’s not enough to simply break down the historical barriers to entry. The democratization of finance is only useful if real people end the year, the decade, even their next several decades, better off than they started.”
Built In connected with Stashers across the organization for their perspectives on the impact of their work, and why it matters so much to them.
Founders Focus
When Robinson was working on Wall Street, he and Krieg saw a need to demystify investing for everyday people.
“When I moved from Australia to the U.S., it was hard to ignore the growing wealth divide in the country,” said Robinson. “This reality is at the root of why me and my co-founder, Brandon, left our jobs on Wall Street and embarked on the journey to start Stash.”
Inspired by their realization, they took to the streets, and the company was born out of conversations with average New Yorkers. The duo realized there are many barriers to entry in traditional investing and that they wanted to provide a solution to build long-term wealth safely and affordably.
For that reason, Stash focuses on financial literacy as much as features because the reality is that most people were not taught about personal finance in school or at home.
Stash User Stats
What keeps Robinson up at night? The people who have been left on the sidelines of the traditional financial services industry. “I’ll always return back to our customers, who truly reflect everyday Americans. These are hard-working people who deserve access to simple, affordable tools to help them build long-term wealth,” he said.
According to Robinson, helping customers start their financial journeys and hit their financial goals “will only be accomplished by continuing to build out a truly passionate and diverse team of experts across every department.”
Robinson knows that the key to serving Stash customers is building a team that reflects the wide-ranging experiences of its users. The company has built a diverse, empathetic and authentic environment to serve its customers by prioritizing people. For example, the company recently announced a “people-first hybrid work model” to prioritize choice and flexibility for workers.
Keeping the mission alive is easy; keeping up with market demand is the real challenge. “We’re recruiting tremendous talent, from all backgrounds, who are reflective of the customers we serve,” said Robinson.
Executive Appeal
Lares grew up in Texas as the son of newly immigrated parents. He was profoundly influenced by his father, who talked openly about investing, and realizes now how impactful it was to see him work purposefully toward a long-term goal.
“When I saw what Stash was doing for its customers by way of financial education and personalized advice, it reminded me of the same lessons my dad taught me in my childhood,” said Lares.
When I saw what Stash was doing for its customers by way of financial education and personalized advice, it reminded me of the same lessons my dad taught me in my childhood.
Lares is still a new leader on the Stash team, but the CFO has worked in financial operations for decades. In that time he has taken two companies through IPOs, completed several rounds of public financing, and navigated several mergers and acquisitions. Lares is a firm believer in the mission at Stash and feels this mission is reinforced by the inclusive and empathetic company culture.
While the idea of empowering everyday Americans is appealing, it helps that the company is in a strong financial position. “There are millions of people who need Stash and that’s why our company is growing so fast,” said Lares. “We surpassed 2 million active subscribers and now serve more than 6 million Americans.”
“Stash is taking a unique approach to solving one of the world’s most pressing problems, and doing it fast with innovation, a strong culture and a real desire to make a difference,” he said.
One example of an innovative approach is the Stock-Back card, which is a tool Lares hasn’t seen anywhere else in the market. It’s not just a rewards program: It also facilitates learning, discovery and diversification.
“When a person shops with our card, they earn fractional shares in the brands where they swipe,” he said. “Thirty-three percent of Stock-Back customers make a follow-up investment in the given stock or fund, leading to a more diversified portfolio that can help people achieve their financial goals.”
Though the future is still being written, Lares sees the necessary ingredients for an incredible journey for Stash — both in terms of the technology, the people, and company trajectory and scale.
“I work with people who not only excel but genuinely do this so they can help our current and future customers have more insight into creating and managing their wealth,” said Lares.
Product Perfection
Ghai grew up in India and remembers watching her father work hard to provide for the family while her mother creatively stretched every rupee. Her parents saved to give Ghai and her brother a solid foundation for their futures and had little to spare for themselves.
“I believe Stash’s tools, like Smart Portfolio and our Diversification Analysis, would have helped make a huge difference for my parents to invest in our family’s future,” said Ghai.
At Stash, Ghai works on back-end operations with a focus on customers. She made the leap from Discover Financial Services and has spent her entire career in the financial industry. But she believes Stash is offering something different with an accessible, personalized product for the masses.
“I’m passionate about Stash’s commitment to financial education and its belief in delivering an easy-to-use platform that’s informed by actual customer wants and needs,” said Ghai.
On average, Stash customers make $50,000 per year and are in their mid-30s. Half of them are women and nearly 95 percent have little to no investing experience. Ghai said that it is energizing to help millions of people build a stable financial future.
“Each one of our customers has unique needs and goals,” said Ghai. “Stash meets them wherever they are on their financial journey. We’re here to help them learn by doing, so that they can feel a sense of confidence and hope over their finances, rather than fear.”
Ghai finds appeal in doing work that directly contributes to Stash’s growth trajectory.
What’s got Ghai most excited right now?
First, every team member at Stash — regardless of when they joined, which team they are on or their stature in the company hierarchy — cares about creating wealth-building tools and making personalized advice more accessible to the general public. “The entire company comes together around this common purpose every single day,” Ghai said.
Secondly, the culture keeps her inspired. “Our team is kind, supportive and willing to roll up their sleeves to help with anything,” she said. “Most of all, we know how to have fun. Our weekly, companywide all-hands meeting is just one example of the joy and energy our growing team brings to work day in and day out.”
Our team is kind, supportive and willing to roll up their sleeves to help with anything.
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