“Millennials can’t or won’t save.” It’s a common refrain and arguably one of the fundamental problems haunting my generation. In the US, student debt is often considered a contributing factor; in Europe, unemployment and the decreasing median net worth of millennials certainly doesn’t help. So, what now?
When I met David Riudor, co-founder and CEO of Goin, his first words were: “finance sucks.” Not your typical icebreaker, but he makes a fair point about the status quo. The current financial players simply aren’t catering to the younger sub-segment of so-called Millennials — 27 years old or less — leaving the age group seriously underserved. Even the largely acclaimed challenger banks do not attract huge volume on the millennial front. N26 publicly shares that 83% of its users are over 25 years old (and 41% are 34 or older).
This is precisely what led David, Carlos and Gabriel — all in their early twenties — to launch Goin, a Barcelona-based startup that was incorporated a year ago.
Goin is a mobile app designed to help millennials achieve their financial goals through automatic saving and simplified investments. The company first launched in May 2018 with an automated savings product, and has since released new investment categories. The app enables users to connect their bank accounts and set up goals — whether it’s saving for a holiday or a new mobile phone. It’s a fully automated journey: one that starts with setting up a savings program and goes on to help customers to execute their goals. All via the app.
Goin’s business model is different: it enables users to reach their goals and make purchases through the app, rather than simply collecting fees on assets under management. Considering that 53% of 22–29 years old in the UK saved no money in savings accounts from 2014 to 2016, the strategy of replicating a traditional AuM fee-based model on that demographic would be perilous at best.
At Anthemis, we have kept a keen eye on the personal finance and retail banking space — with a particular interest in founders like David, Gabriel and Carlos, who are creating value in the context of open banking. The team at Goin has already demonstrated a rare ability to balance product development whilst growing its user base. It is not a coincidence that prior to launch — and in only 4 months — the team managed to build one of the largest waitlists ever, with over 74,000 signups. Fast forward 6 months, the app muscled into 2019 with well over 100,000 downloads in Spain alone.
We are excited to count Goin in our portfolio and we look forward to the many milestones ahead of us. Keep Goin!