New US banking app Swell set to launch in summer

A new US banking app called Swell, which combines checking, credit and more into one integrated account, is set to launch in June.

The fintech secured $10m in Series A equity funding last month

Swell’s parent bank Central Pacific Financial, based in Hawaii, incubated the firm for more than a year before spinning it out at the beginning of 2022.

The new fintech will also offer investing, home purchasing and cryptocurrency capabilities further down the line.

“The top five US banks posted record profits of $145 billion in 2021 yet 99% of consumers say that their bank doesn’t help them get ahead financially,” says Swell founder and CEO Kevin Dahlstrom.

“More than ever, consumers are looking for an alternative that helps them build wealth.”

The Swell App will embed online credit solution Elevate Credit in order to offer personal lines of credit with APRs below 24%, which will allow users to consolidate higher-interest debt from credit cards and other loans.

Users will pay interest on their credit line only when funds are drawn down into their FDIC-insured checking account.

Each Swell account comes with a Mastercard-powered debit card which offers up to 1.25% Annual Percentage Yield (APY). There are no monthly fees or overdraft fees and users can withdraw cash fee-free from more than 45,000 ATMs across the US.

In anticipation of its launch, Swell secured $10 million in Series A equity funding last month, in a round that saw participation from Elevate.

Elevate president and CEO Jason Harvison will also join Swell’s board of directors, alongside Dahlstrom and Central Pacific Bank CEO Paul Yonamine.

Central Pacific hopes that Swell will be one of many fintech offerings that expand its reach across the US mainland.

Swell is just one of a number of “financial services offerings that fill a real need in the marketplace and further our digital-first transformation,” says Yonamine.