Fizz: Revolutionizing Financial Services for Gen Z
Fizz, a startup founded by Carlo Kobe and Scott Smith, aims to provide Gen Zers with a debit card product that goes beyond traditional banking services. The founders dropped out of Harvard and Cornel to pursue their vision of helping young people establish credit and gain financial independence. Fizz’s core offering includes an artificial intelligence budgeting product and gamified financial literacy courses presented in a fun and interactive quiz format. The startup primarily targets college students aged 18 to 24.
Unlike other fintech startups that rely on third-party vendors, Fizz decided to build its own infrastructure from scratch. Additionally, the company opted for a direct banking partnership with Lead Bank, which has allowed it to offer its services directly to customers. This strategic decision has given Fizz a competitive edge in the ever-evolving banking-as-a-service (BaaS) startup landscape.
In terms of funding, Fizz recently raised $14.4 million in seed funding led by Kleiner Perkins, with participation from well-known venture capital firms and successful founders and operators from various industries. The startup has experienced significant growth, acquiring tens of thousands of customers in just 12 months. Its offering is available at over 300 colleges and universities, including Ivy League schools and top-ranked institutions.
The driving force behind Fizz’s creation was the founders’ personal experiences as young college students. Kobe faced challenges obtaining a credit card due to his parents’ inability to co-sign, leading to repeated rejections. This realization prompted the founders to develop an alternative entry ramp into building credit for college students. Fizz not only provides a debit card but also offers financial literacy content, budgeting software, savings tips, and access to one-on-one financial advisors.
Fizz’s success can be attributed to its robust partnerships with Lead Bank, Mastercard, and credit bureaus. The company built its own infrastructure and underwriting methodology, allowing it to offer a seamless user experience. Fizz generates revenue primarily from interchange fees and partnerships with recommended brands. Its credit-building offering is free, prioritizing the financial well-being of its customers.
Looking ahead, Fizz plans to use the funding to expand its services, enhance its product roadmap, and continue hiring in sales, marketing, and engineering. The company envisions releasing various AI products in the future to further assist Gen Zers in managing their finances effectively.
Fizz is part of a growing wave of fintech startups catering to the needs of Gen Z. This demographic has unique requirements when it comes to financial services and education. Other notable players in this space include Frich, which focuses on financial education and community-building among Gen Z, and Alinea Invest, which offers AI-powered wealth management for Gen Z women.
Overall, Fizz’s innovative approach to banking and financial literacy has positioned it as a frontrunner in serving the expansive Gen Z market. By prioritizing the needs of young adults and providing them with the necessary tools and guidance, Fizz is empowering a new generation to become financially independent and knowledgeable about personal finance.