Savings app Communion, launched by the founder behind digital mortgage startup Habito, has raised £2.5m in a pre-seed funding round.
The funding announcement coincides with the launch of the Communion app, a new fintech product designed to encourage savings amid an unprecedented rise in the cost of living.
The app combines a standard savings account, with a 3.66% AER, with an educational platform that coaches users on savings.
The company said its coaching is based on psychological research and behavioural science to tackle underlying money anxiety.
“We created Communion for people to fix their relationship with money and live life with more autonomy and less fear,” said Communion founder and CEO Daniel Hegarty.
“You want to go on holiday. You want to move to a nicer area. You want to quit your day job. You just want to feel less anxious about money.
“The difference between doing the thing you’ve always wanted to do, and never having the chance isn’t hustling, get-rich-quick-schemes or meme stocks – it’s saving.”
The funding round was led by Target Global and featured participation from Uncommon Creative Studio, Erin Lantz, Greg Marsh and Max Rofagha.
“Fintech and the finance industry at large are awash with money apps and tools but none that go to the heart of what it really takes to build wealth with confidence and control,” said Dr Ricardo Schäfer, a partner at Target Global.
“With the backdrop of the cost living crisis and rising concerns about the nation’s financial future, there has never been a better time to address the advice gap in the UK.”