EXLUSIVE – SME-focused digital banking app Seed is getting rid of its monthly fee and will now be free for customers.
The San Francisco-based fintech used to charge its customers $9 per month, but after conducting a survey, CEO Brian Merritt told Bank Innovation that he realized Seed could serve customers better by being free.
The mobile-first bank will still charge customers $25 per wire transfer.
Founded in 2014, Seed is a mobile-first banking service designed for small businesses. It provides digital tools and customer-support resources for starting, running, and growing a business. It offers banking basics such as DDA account, business credit cards, and bill pay services via ACH, among other things. It also provides other banking features including a Visa Business Debit card, free bill pay, transfers, mobile deposits, and electronic vendor payments via ACH or paper check.
On Wednesday, the company released a research report on data gathered from 423 SMEs in the U.S., which was conducted by ResearchScape.
“The research showed that 32% of the respondents were not separating their personal and business bank accounts,” Merritt said. “This can lead to serious accounting, tax, and reporting challenges for SME owners.”
Aside from releasing the findings of this research to the media (the company’s first media announcement ever), Seed will also publish the survey in its monthly newsletter, which was created to build a community among its users by educating and informing them of developments in the space.
“Releasing the research is way to tell people we exist,” Merritt said.
Founded in 2014, Seed has customers in 40 of the 50 U.S. states and is available on iOS and online. Merritt would not disclose the number of its current user base.2 - Readers Like This Post