We can help people gain 20 percent more money over their lifetime, claims the co-founder of Plum
Financial literacy is not the strongest of skills for many of us. In Cyprus, the home of Reflect Festival, four in 10 people don't budget their expenses and lack understanding of the compound interest. However, the solution seems to be around the corner with fintech entering our daily lives.
We've talked with Victor Trokoudes from Plum, an app for managing money, about automation in finance, effortless saving and investing, and the company's success story. Victor joined Reflect at the Fintech stage curated by our valued partner, payabl.
Hand in hand with your bank
"The idea is: how can we automatically help you get more money if you put in very little effort?" Trokoudes explained in an interview with Matej Ftacnik from Vacuumlabs. The first layer of the app helps people understand their finances, as they can sync up their bank accounts. In the next stage, they allow their clients to grow their assets.
"All in all, if these things happen correctly, people can have 20% more money over their lifetime, which we think is important. We think people in Europe are not really investing their money and growing it for the long run," Trokoudes explained. On top of that, Plum will include stock and crypto trading options, and they're also launching their own cards. The intention is not to replace banks at this point, but the CEO isn't ruling it out for the future. "In the long run, if you want to replace your bank, we can. We don't call ourselves a neobank, but we're very much still focused on working alongside the bank and helping to save and invest money. And I think those two completely different parts - a neobank allows you to transact," he said.
Making your money work
Instead of transactions, Plum gives its customers access to thematic funds to help them grow their money. "We have a clean energy fund, an ESG fund, and then we also have a risk-based fund that has an ESG wrapper around it. Out of 14 funds that we have, four allow you to choose that your money is not going to places where you might disagree," Trokoudes said. The one focused on tech has performed exceptionally so far, yielding 20 percent annually. Next in line are single stocks that will enable people to construct collections.
So far, the company caters to European customers and continues to expand throughout the continent, with Cyprus being one of the newest locations. Trokoudes says there's more to come: once Plum establishes itself in Europe, they're looking at countries such as Brazil or India.
"In places like the US, we think there's much more going on, and it doesn't feel like we would bring a lot more value. We try to focus our efforts in places where things don't exist, and we like big markets," Trokoudes concluded.
Watch the whole interview here: https://youtu.be/cG_X13ixE0Q
This article was brought to you by payabl., a paytech expert empowering merchants to take, make, and manage payments globally. payabl.'s solution stack includes card acquiring, alternative payment methods, payment accounts, and prepaid cards.