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{"id":30994,"date":"2023-05-04T21:56:57","date_gmt":"2023-05-04T21:56:57","guid":{"rendered":"https:\/\/scienceandnerds.com\/2023\/05\/04\/slash-aims-to-corner-the-gen-z-market-with-business-focused-banking-features\/"},"modified":"2023-05-04T21:56:58","modified_gmt":"2023-05-04T21:56:58","slug":"slash-aims-to-corner-the-gen-z-market-with-business-focused-banking-features","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2023\/05\/04\/slash-aims-to-corner-the-gen-z-market-with-business-focused-banking-features\/","title":{"rendered":"Slash aims to corner the Gen Z market with business-focused banking features"},"content":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/05\/04\/slash-aims-to-corner-the-gen-z-market-with-business-focused-banking-features\/<\/a><\/br>
\nSlash aims to corner the Gen Z market with business-focused banking features<\/br>
\n2023-05-04 21:56:57<\/br><\/p>\n

\n

Around two years ago, Victor Cardenas and Kevin Bai \u2014 college dropouts from Stanford University and the University of Waterloo, respectively \u2014 built a fintech platform called Slash<\/a> that lets users create shareable virtual cards to split recurring expenses. Slash quickly became popular with teenagers because its virtual cards were debit-based, available to people 13 or older and didn\u2019t limit spending based on credit history.<\/p>\n

In the subsequent months, Cardenas and Bai say that they saw an opportunity to got after a larger market: young, commerce-focused entrepreneurs.<\/p>\n

\u201cThe goal is for Slash\u2019s suite of products to be so robust that it gives people who otherwise wouldn\u2019t have taken the leap toward self-employment the confidence to work for themselves,\u201d Cardenas told TechCrunch in an email interview. \u201cSlash\u2019s goal is to capitalize on people\u2019s growing tendency to make a living on the internet and give as many people as possible the confidence to start their own business.\u201d<\/p>\n

Today, Slash \u2014 which is FDIC-insured via Piermont Bank, its partner bank \u2014 offers something of a hybrid business\/personal banking product that allows users to silo their personal and business funds but manage them from a single dashboard. Customers get two Mastercard-branded debit cards and see two transaction feeds, with controls for whitelisting \u2014 or blacklisting \u2014 merchants for purchases.<\/p>\n

Slash bundles nonbanking software with its core product, providing daily advances for merchants selling on platforms like Alias and Amazon, a virtual card product with fine-grain spend limits and a feature that automatically generates profit and loss statements<\/a> from transaction data. As before, any user over the age of 13 can sign up with Slash \u2014 credit checks aren\u2019t required.<\/p>\n

Those under 18 must have a legal guardian participate in the Slash account setup process, however. Guardians have a specialized view of the user\u2019s account with full control and can track and make changes at any point, Cardenas says.<\/p>\n

\u201cSlash isn\u2019t built for enterprise \u2014 it\u2019s built for self-employed Gen Z entrepreneurs,\u201d Cardenas said. \u201cEventually, Slash would like to help young entrepreneurs file their taxes, issue invoices and incorporate new businesses all in one place.\u201d<\/p>\n

Slash is a part of a crop of intriguing neobanks targeting the Gen Z market, particularly Gen Zers with side hustles like drop-shipping and livestreaming. Juni<\/a>, which launched several years ago, offers capabilities designed to appeal to young e-commerce businesses. Meanwhile, Zelf launched a banking integration with Discord to make it easier to trade virtual assets, like collectibles, through real-money transactions.<\/p>\n

\"Slash\"<\/p>\n

Image Credits:<\/strong> Slash<\/p>\n<\/div>\n

Cardenas argues that their success indicates a \u201cmindset shift\u201d in young entrepreneurs away from conventional financial institutions.<\/p>\n

\u201cBanks\u2019 strategies for growth, trust-building and retention that have proven effective in the past may not be equally fruitful in the future,\u201d he said. \u201cThe way Slash delivers support, communicates with customers and ships new features resembles a \u2018WallStreetBets-like\u2019 Reddit community<\/a> more than a traditional, buttoned-up brick-and-mortar bank.\u201d<\/p>\n

Investors seem keen on the idea \u2014 at least in Slash\u2019s case. Perhaps persuaded by Slash\u2019s 20,000-person-strong customer base, NEA, Menlo Ventures, Connect Ventures, Y Combinator, Soma Capital, Global Founders Capital and angel investors poured $19 million into Slash\u2019s Series A and seed rounds. Plaid founder William Hockey and Tinder co-founder Justin Mateen were among the participants.<\/p>\n

Of course, even for the best-positioned of neobanks, it\u2019s an unforgiving macroeconomic environment at present. Neobanks often struggle to turn a profit, with an estimated fewer than 5% breaking even, per a report<\/a> from Simon-Kucher & Partners.<\/p>\n

Last June, roughly two years after Xinja collapsed, Volt Bank also went under, returning $100 million to customers after failing to secure enough funds through a capital raise. Two other neobanks, 86 400 and Up, have been acquired by the big banks over the last two years.<\/p>\n

Can Slash do better? We\u2019ll have to wait and see.<\/p>\n

Brighter days might be on the horizon for the industry, fortunately. Insider Intelligence forecasts<\/a> that the number of U.S. neobank account holders will grow 46.4% between 2022 and 2026.<\/p>\n

In any case, Slash is choosing to be conservative with spending at the start, refraining from expanding its 23-person workforce for the foreseeable future.<\/p>\n

\u201cWith the money raised, Slash plans to eventually grow its engineering, design and customer success teams while continuing to build features that delight customers and keep up with demand,\u201d Cardenas said.<\/p>\n

NEA Rick Yang expressed his approval in an emailed quote:<\/p>\n

\u201cWe are excited to support Slash\u2019s mission to create a zero-friction banking experience for the hustle economy. Victor, Kevin, and team have created a unique approach to bridging the gap between personal and business banking. Their focus on serving the needs of the next generation of entrepreneurs is impressive, and we look forward to seeing their continued growth and success.\u201d<\/p>\n<\/p><\/div>\n

<\/br><\/br><\/br><\/p>\n

Science, Tech, Technology<\/br>
\n<\/br>
\nSource:
https:\/\/techcrunch.com\/2023\/05\/04\/slash-aims-to-corner-the-gen-z-market-with-business-focused-banking-features\/<\/a><\/br><\/br><\/p>\n","protected":false},"excerpt":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/05\/04\/slash-aims-to-corner-the-gen-z-market-with-business-focused-banking-features\/ Slash aims to corner the Gen Z market with business-focused banking features 2023-05-04 21:56:57 Around two years ago, Victor Cardenas and Kevin Bai \u2014 college dropouts from Stanford University and the University of Waterloo, respectively \u2014 built a fintech platform called Slash that lets users create shareable virtual cards to split recurring expenses. Slash […]<\/p>\n","protected":false},"author":1,"featured_media":30995,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,17,8],"tags":[],"class_list":["post-30994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-science","category-tech","category-technology"],"yoast_head":"\nSlash aims to corner the Gen Z market with business-focused banking features - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2023\/05\/04\/slash-aims-to-corner-the-gen-z-market-with-business-focused-banking-features\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Slash aims to corner the Gen Z market with business-focused banking features - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source:https:\/\/techcrunch.com\/2023\/05\/04\/slash-aims-to-corner-the-gen-z-market-with-business-focused-banking-features\/ Slash aims to corner the Gen Z market with business-focused banking features 2023-05-04 21:56:57 Around two years ago, Victor Cardenas and Kevin Bai \u2014 college dropouts from Stanford University and the University of Waterloo, respectively \u2014 built a fintech platform called Slash that lets users create shareable virtual cards to split recurring expenses. 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