A new app combines banking and insurance into one service aimed at people who feel left out of traditional financial services.
Onuu, which announced its official launch on Friday, has a waiting list of 600,000 members. The app charges a subscription fee of $74.99 per year or $7.99 per month for access to a range of products including a checking account, savings account, and budgeting tools. A credit card that doesn’t require a FICO score is in the works.
The company, whose name is pronounced “on you,” announced $6 million in Seed A funding in March.
“The goal of Onuu is to bring [Americans who are rejected when they apply for financial products] into the financial system fairly and give them a chance to thrive by offering financial security as a product,” said Felix W. Ortiz III, CEO and co-founder of Onuu, in a press release at the time.
A rather unusual aspect of Onuu is the availability of life insurance.
Onuu Life Insurance is issued by AAA Life Insurance Company. Users answer three questions in the app to receive a cost quote ranging from $25,000 to $250,000, starting at $12 per month.
In a May interview With Digital Insurance, Ortiz III said that AAA Life Insurance’s average customer earnings range from $75,000 to $90,000 and that Onuu will bring a different customer base to AAA.
“I wanted to create something that would really democratize access to insurance and financial products for the demographic segmentation that needs it most, but that has often been overlooked because they either have a thin credit record or live in a zip code that’s due to Actuaries are data, they are a higher risk,” he said in the interview.
There are also features that include artificial intelligence and machine learning to improve financial health. An AI-powered “financial coach” named Candi will make recommendations to each user based on their goals, assets, and behaviors, create an automated budget via an in-app chat, and answer questions. It is named for co-founder Ortiz III’s grandmother, who moved to New York City from Puerto Rico in search of financial stability. The app’s Financial Security Score uses machine learning models to measure the user’s overall financial well-being by factoring in income, expenses, insurance, savings, financial behavior, and more.
The deposits are held by Evolve Bank & Trust, a $1.3 billion entity in Memphis, Tennessee. The credit card is issued by CBW Bank, a $68 million entity in Weir, Kansas.