Level

Originally established as Zero Financial in 2016 by founders Bryce Galen and Joel Washington, the San Francisco-based firm launched Level as its primary digital banking product. The company's core offering was a neobank platform that integrated a checking account with a credit card, enabling users to earn cashback on their balances, a feature typically associated with credit cards, but applied to the simplicity of a debit card. The business targeted individual consumers, providing services such as deposit accounts, money transfers, and bill payments through a mobile application, without the overhead of physical branch locations.

Level's business model centered on providing these financial services through a partnership with Evolve Bank & Trust, which held the actual banking licenses. The company generated revenue through interchange fees and other standard banking service charges, while aiming to attract customers with features like fee refunds for ATM usage. The platform was designed to offer a unified financial experience, combining daily spending with rewards and savings functionalities.

After securing approximately $31 million in funding across five rounds from investors including New Enterprise Associates and Eniac Ventures, the company reached a significant milestone. In April 2021, Zero Financial, along with its Level product, was acquired by Avant, a Chicago-based fintech company focused on lending products. The acquisition was a strategic move for Avant to broaden its portfolio beyond loans and credit cards, incorporating digital banking services to create a more comprehensive financial ecosystem for its customer base. Following the acquisition, Level's operations were integrated into Avant's offerings. Keywords: digital banking, neobank, fintech, cashback rewards, mobile banking, financial services, acquisition, checking account, credit card, personal finance