CHICAGO, Sept. 09, 2020 (GLOBE NEWSWIRE) -- M1 Finance, the automated money management platform for investing, borrowing, and banking, today announced it surpassed $2 billion in assets on its platform, just six months after hitting the $1 billion asset mark.
M1 reached both the $1 billion and $2 billion AUM thresholds faster and with far less funding than any of its fintech peers, like Wealthfront, Betterment, and Acorns.
The $2 billion asset milestone follows on the heels of M1 Finance’s June 2020 $33 million funding round, which brought its total venture funding to $54.5 million.
Doubling-Down on Growth
Since reaching the $1 billion AUM milestone in late February 2020, M1 has added 229,000 new brokerage accounts – representing 83 percent growth over this period.
Today, more than 500,000 self-directed investors use M1’s suite of money management products – M1 Invest, M1 Borrow, and M1 Spend – to build long-term wealth, meet medium-term financial needs, and manage short-term spending.
Pointing to a marketing budget that has been a small fraction of its competitors, M1 Finance CEO Brian Barnes attributes its rapid growth to strong word of mouth among its loyal user base.
“Our record number of account signups and net inflows on M1 is evidence that our platform is solving financial challenges for people, so much so they want to talk about it with their families and friends,” said Barnes. “Investors are tired of the work required to manage their money across many apps and banking providers, and they are desperate for an app that combines investing, borrowing, and banking in one.”
The Finance ‘Super App’
Before M1, self-directed investors had to use a mix of brokers, money management apps, spreadsheets, and banks to manage different aspects of their personal finances, which increased costs and complexity.
M1 tackles that challenge with three integrated tools all in one platform:
- M1 Invest – Free, automated investing in a custom portfolio.
- M1 Borrow – Hassle-free borrowing against portfolios with a base rate starting at 3.5% and as low as 2% with M1 Plus subscription.
- M1 Spend – An FDIC-insured checking account integrated directly into M1, with a 1% cash-back debit card and up to 1% APY* available with M1 Plus subscription, and other functionality to improve day to day finances.
“Self-directed investors who want to build wealth over the long term are hungry for a finance ‘super app’ like M1,” added Barnes. “We give investors complete control of managing their money in one place, while leaving it to our technology to take care of the tough work like portfolio balancing, reinvesting, and money movement.”
M1 Finance was also a pioneer in introducing fractional shares that allow self-directed investors to build diversified portfolios of stocks and ETFs of their choosing.
It was also among the first platforms to offer free, no-commission and no-management-fee investing.
To learn more about M1 Finance, visit www.m1finance.com.
About M1 Finance
Award-winning M1 helps people manage and grow their money in easy, smart, automated ways – for free – on one integrated, secure platform. By combining investing, cash management, and portfolio lines of credit, M1 provides hundreds of thousands of people with choice and control over their money. M1 was named 2019 Best Robo-Advisor for Sophisticated Investors and 2019 Best for Socially Responsible Investing by Investopedia. For more information or to create an account, please visit www.m1finance.com.
Disclosures
*No minimum balance to open account. No minimum balance to obtain APY (annual percentage yield). APY valid from account opening. Fees may reduce earnings. Rates may vary.
All investing involves risk, including the risk of losing the money you invest, and past performance does not guarantee future performance. Borrowing on margin can add to these risks, and you should learn more before borrowing. Borrow rates subject to change. M1 does not provide investment advice, and this is not an offer or solicitation of an offer, or advice to buy or sell any security, and you are encouraged to consult your personal investment, legal, and tax advisors.
Brokerage products are: Not FDIC Insured • No Bank Guarantee • May Lose Value
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M1 refers to M1 Holdings Inc., and its affiliates. M1 Holdings is a technology company offering a range of financial products and services through its wholly-owned, separate but affiliated operating subsidiaries, M1 Finance LLC and M1 Spend LLC. M1 Plus is an annual membership that confers benefits for products and services offered by M1 Finance LLC and M1 Spend LLC.
Brokerage products and services offered by M1 Finance LLC, an SEC registered broker-dealer and Member FINRA / SIPC.
M1 Spend checking accounts furnished by Lincoln Savings Bank, Member FDIC. M1
VisaTM Debit Card is issued by Lincoln Savings Bank, Member FDIC.
Media Contact: Jillian Smith, jillian@propllr.com