Neobank Lance targets gig economy's income volatility
/The New York City-based challenger divides a user's payments into sub-accounts for salary, tax withholdings, business expense balance and a savings account.
Lance, a new challenger bank for freelancers, is hoping to grab a significant share of the approximately 60 million gig workers in the U.S.
The fintech closed a $2.8 million seed round Tuesday, with investors including Barclays, BDMI, Great Oaks Capital, Imagination Capital, Techstars and DFJ Frontier, among other angel investors.
Lance, whose Federal Deposit Insurance Corp. (FDIC)-insured deposits are held at Charlottesville, Virginia-based Blue Ridge Bank, uses automation to address the typical volatility of a freelancer’s income by creating a series of sub-accounts for the user.
Lance distributes a portion of a user’s payments toward their personal salary, tax withholdings, business expense balance and a savings account.