Swell Financial

Swell Financial Inc. operates as a fintech company focused on providing banking and investment services to a broad consumer base. The company was founded by CEO Kevin Dahlstrom, a fintech marketing executive. In February 2022, Swell announced it had emerged from stealth with $10 million in Series A funding. The round was led by an affiliate of Park Cities Asset Management, with participation from Elevate Credit, Inc., and Central Pacific Financial Corp ("CPF"), the parent company of Central Pacific Bank ("CPB"). This funding followed an incubation period of over a year with CPB, which is also an equity investor in the firm.

The company's primary offering is the Swell App, developed to help working Americans build wealth by providing access to financial tools and investment opportunities. The app, with Central Pacific Bank as its sponsor, features no-fee, no-overdraft checking accounts that offer interest rates up to 1.25% APY and allow users to access their paychecks up to two days early via direct deposit. It also includes features designed to assist users with managing spending and debt.

A distinct element of Swell Financial's service is the Swell Compound feature, which enables users to participate in private market real estate investments. This is facilitated through a crowdfunding model, allowing investment with as little as $1,000 in assets typically reserved for accredited investors with much higher minimums. The company also has plans to introduce features for simplifying the transfer of existing credit card debt to a lower-interest Swell account and for analyzing homeownership as an investment. The business model centers on providing accessible financial products and generating revenue through these services, moving beyond traditional banking to include wealth-building opportunities.

It is important to differentiate this Boulder-based fintech from a previous, unrelated company called Swell Investing. Swell Investing was an impact investing platform backed by Pacific Life Insurance that ceased operations in August 2019 because it was unable to achieve the necessary scale. That platform, founded by Dave Fanger, focused on thematic portfolios aligned with the UN Sustainable Development Goals and charged an annual management fee.

Keywords: digital banking, fintech, personal finance app, wealth building, private market real estate, crowdfunding investment, no-fee checking, debt management, early paycheck access, consumer finance, Series A funding, Kevin Dahlstrom, Central Pacific Bank, Park Cities Asset Management, Elevate Credit, financial services, investment app, real estate investing, high-yield checking, financial wellness