Boston based fintech Trio is betting that customers would rather higher returns on their money versus deposit insurance as they look to offer younger customers investment flexibility; the company plans to launch in 2020 and their CEO says the company will never be a bank but is a software company; Neel Ganu, Trio’s Founder and CEO, tells American Banker, “The core problem we’re trying to solve is the majority of younger people don’t invest, and they state a range of reasons — risk, inertia, knowledge, wanting control over funds.”; they plan to use the account as a checking and investment account by offering exposure to S&P 500 ETFs, government bond ETFs and money market ETFs; there is a risk in the offering as Robinhood recently found but Trio plans to inform customers from the outset that the accounts are not insured. Source.
