Frich, an app dedicated to Gen Z finance

Frich is a financial education app that bridges the gap between Gen Z, banks and brands.

Over the next few decades, there will be an unprecedented wealth transfer of $68,000 billion to Generation Z. A transfer that will accelerate the purchasing power of Generation Z to become the largest of any generation over the next ten years. Yet this shift presents two major challenges. On the one hand, banks are struggling to attract Generation Z customers. On the other, Generation Z lacks appropriate financial knowledge and often turns to unreliable sources such as influencers for advice.

Frich to participate in the financial education of Gen Z

As a teenage model, Katrin Kaurov became financially independent from an early age. Aleksandra Medina, whom she met at NYU Abu Dhabi, also learned to manage her money at an early age. As students, the two young women became close friends. Noticing a lack of space dedicated to conversations about financial management for people their age, they decided to join forces in 2021 to create Frich. "We realized that Generation Z has no idea what to do with their money. We simply felt that there was a very big gap between what is broadcast online and what banks and financial institutions actually offer to Generation Z."

Frich offers a platform where users anonymously compare their finances with those of their peers, enriched with educational resources andexclusive in-app benefits. For example, a first-year university student can see what others with similar incomes are spending on entertainment, investment and rent. On the app, young people chat about their investments or simply to find out how to qualify for housing allowances, for example. "I think one of the things that makes Generation Z really different from other generations is that they want to talk more about money," says Kaurov. "They want to be open and honest about their realities." And for those looking for help to improve their situation, Frich can also collect data from users and connect them to certain banks.

Frich attracts investors

The duo launched their app in the summer of 2021, and since then have more than 100,000 users nationwide. Key markets include New York, Florida and Texas. Frich is approaching $1 million in annual recurring revenue (ARR) with a B2B subscription model.

The six-person startup is on a roll and has just announced that it has raised $2.8 million. This sum will enable the young team to recruit. In particular, it has just hired a former Bumble employee to head up growth and one of the first employees of Robinhood (an American financial services company) to work on the product. According to Cameron Peake, Partner at Restive Ventures Frich "really has its finger on the pulse of how Generation Z thinks and acts about money. It has the potential to become a massive business" "The consumer market is so large that it can grow rapidly."

Frich is not the only fintech on the vast market of finance aimed at Generation Z. In January, Alinea Invest, a fintech offering AI-based wealth management for women, raised $3.4 million, while Bloom, a commission-free equity investment tool for teenage investors, announced that it had reached 1 million downloads after launching in February 2022.

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