WealthMore: Bridging the Wealth Gap and Empowering Users
Introduction
Mical Jeanlys-White, a former Wall Street professional, launched WealthMore out of frustration with the finance industry’s limited accessibility and lack of transparency. Recognizing that 70% of Americans do not have access to a wealth adviser due to high account minimums and fees, Jeanlys-White sought to create a platform that would democratize wealth management and help individuals build and understand their wealth. After two years of development, WealthMore quietly launched its beta in June and is now announcing its official launch.
Addressing the Wealth Gap
Jeanlys-White’s personal journey informed the creation of WealthMore. Her grandmother, an immigrant from Haiti, served as the family’s unofficial money coach and participated in a savings club to achieve financial goals. However, her grandmother’s wealth remained stagnant in low-interest savings accounts and CDs because she lacked access to a wealth adviser. Jeanlys-White believes that if her grandmother had benefited from a wealth adviser’s guidance, she could have created generational wealth. This personal experience highlights the racial wealth gap that persists in the United States.
The Racial Wealth Gap
Data from the federal government reveals that the median Black wealth increased from $27,970 to $44,890 between 2019 and 2022. However, this figure still lags behind other racial groups. Hispanic households have a median wealth of $62,000, white households have $295,000, and Asian American households have $536,000. The racial wealth gap remains significant, with white households holding 80% of the country’s wealth compared to only 4.7% owned by Black families. Experts predict that it could take another hundred years to close this gap. WealthMore aims to address this issue by providing accessible wealth management services to marginalized communities.
The Gender Pay Gap’s Impact on Retirement Savings
Jeanlys-White also highlights the impact of the gender pay gap on retirement savings and wealth accumulation. Women can lose up to at least $1.2 million due to the gender pay gap, and statistics show that only 49% of Black women have a 401(k), compared to 62% of overall adults. The wage gap contributes significantly to the retirement savings and wealth gap. WealthMore aims to empower women by providing them with the tools and resources to overcome financial disparities.
Building the Brand and Engaging Users
Before developing the platform, Jeanlys-White conducted extensive surveys with over 300 potential users to determine their needs and willingness to pay for services. These insights informed the company’s pricing tiers, starting at $25 per month for a $5,000 minimum account size. The website’s design and user experience were also influenced by user feedback. To build the brand and foster engagement, WealthMore released lifestyle products and hosted wealth-building conversations in various settings, such as hair salons, doctor’s offices, and conferences. Jeanlys-White emphasized the importance of having diverse wealth advisers on the platform to ensure representation for all users.
Creating Empowering Communities
WealthMore has created communities within its app to foster connections and empower users. Communities like #firstgenwealth, #newinvestors, and #blkwomenwealth allow users to join and participate in activities and events. By addressing unique factors and leveraging investing and financial planning, WealthMore aims to help marginalized communities overcome financial obstacles and achieve financial success.
Fundraising and Future Plans
Despite the challenging funding environment for fintech startups, Jeanlys-White successfully raised over $1 million in an oversubscribed pre-seed round. Investors, including Emmeline Ventures, a16z TxO, the BFM Fund, and First Row Partners, recognized the potential of WealthMore after seeing the product and understanding its mission. The company currently has a team of 10 people, with the first hire being the head of engineering to ensure a smooth product launch.
Conclusion
WealthMore is on a mission to bridge the wealth gap and empower individuals to build and understand their wealth. By providing accessible wealth management services and fostering inclusive communities, the platform aims to address the racial and gender wealth disparities that persist in society. Jeanlys-White’s personal journey and her grandmother’s experience serve as a driving force behind WealthMore’s mission. As the platform moves out of beta mode and expands its user base, it aims to help individuals achieve their financial goals and create a lasting impact on their communities.