Taking an innovative approach to addressing wealth inequality that simultaneously builds brand loyalty, Dutch fintech startup Bits of Stock has just picked up about €4.2 million. The idea is that through the ownership economy wealth inequality can be addressed.
On a global scale, financial inequality is widening and younger generations are taking the biggest burden of this challenge. On a mission to address wealth inequality through promoting the ownership economy, Amsterdam-based Bits of Stock has just picked up €4.2 million. The funding was led by Keen Venture Partners and Yellow Accelerator by Snap Inc.
Founded in 2018, the fintech disruptors have developed a consumer reward platform that drives loyalty for brands, replacing traditional points, loyalty cards, and cashback programs with assets that grow in value over time. It means that everyday choices become wealth-building opportunities. Shoppers simply enrol a credit card in the Bits of Stock app to automatically start earning rewards.
Arun Sundararajan, from the NYU Stern School of Business, commented: “Stock rewards are dramatically more effective than cash and points because they’re aligned with economic and purchasing incentives. They have a more visceral, emotive and instinctive appeal as well, creating a deeper brand connection, Bits of Stock is pointing us to the future of loyalty programs.”
According to the charity Oxfam, the world’s richest 1% own nearly half of the world’s wealth. Read that again. It’s a shocking statistic that is affecting people, particularly younger generations, on a global scale. Without innovative action, the situation is only going to get worse.
Bits of Stock is aiming to reverse this trend by making financial products like fractional shares easily accessible, particularly useful for younger generations who have more difficulties building long-term wealth. The majority of Millennials and Gen Z don’t invest and have fewer savings than older generations.
With this funding, the young company is launching a Growth Rewards API, allowing clients to embed a seamless rewards experience into their own applications and choose from thousands of fractional shares and crypto rewards. For brands and retailers, but also neobanks and BNPL providers, the Bits of Stock Growth Rewards API represents a game-changing opportunity – enabling them to boost brand loyalty, by showing shoppers that relationships are more than just transactional.
Arash Asady, CEO and co-founder of Bits of Stock, explained: “The Bits of Stock Growth Rewards API will support a range of embedded finance and rewards-as-a-service use case. It is the most significant innovation in customer loyalty programs since they began, more than two centuries ago.”
The fintech firm is currently working with 60 brands, including Adidas, KFC, Nike and Zara, and, they also have subscription brands such as Uber, Spotify and Netlfix active on the platform. This new finding will give the team a competitive edge in the embedded finance industry. It’ll be used to double the team size and onboard more than 200 brands in the next 12 months.
Arash added: “The funding will help us to scale up our mission of building the “Ownership Economy” for the thousands of brands and their tens of millions of end consumers. Our ultimate purpose is to address wealth inequality and help young people learn about finance and investing.”
