Carefull – an AI-powered financial safety platform that helps banks and wealth advisors protect aging customers from scams and money mistakes – recently announced that it has closed its Series A round with $16.5 million in funding. The funding round was led by Fin Capital and joined by Bessemer Venture Partners, TTV Capital, Commerce Ventures, Montage Ventures, and Alloy Labs, bringing the company’s total funding to $19.7 million.
Carefull is the financial ecosystem’s first Protect-Retain-Transfer (PRT) provider, which is a tech solution that enables banks, financial advisors, and insurers to protect older adults – their most valuable and vulnerable customers – from outside threats and even their own money mistakes while the institution retains their assets and deposits for longer and builds relationships with next-generation family members ahead of wealth transfer. And Carefull actively scans all customer account types for over 50 financial and behavioral issues unique to aging, catching unusual activity, suspicious patterns, and larger problems like financial exploitation by a loved one or signs of cognitive decline. The platform also integrates identity, credit, and home title monitoring; $1 million in identity theft insurance; a password and document vault; and a smarter Trusted Contacts system for banks to gain a share of family and share of wallet.
In the past year, Carefull rapidly expanded its footprint to include more than 35 financial institutions and advisor groups. And the Cooperative Bank in Roslindale, Massachusetts, recently won a 2023 Community Commitment Award from the American Bankers Association for its use of Carefull to protect older Americans from fraud and unusual account activity. As of Q3 2023, Carefull has been shown to reduce customer account churn and attrition by as much as ten times in partner banks, and has generated as many as 60 new leads per wealth advisor.
Carefull’s new funding round will be used to scale onboarding and support for new partners, enhance R&D efforts aimed at protecting older adults, and build capacity to meet new state regulations that require more protections for aging Americans.
KEY QUOTES:
“There are now 45 million people across the country who are tasked with managing an aging loved one’s money, and older Americans lose $37 billion annually to fraud and money mistakes. The growing role of the financial institution to help families here cannot be understated.”
— Todd Rovak, Co-founder and Co-CEO of Carefull
“Banks, wealth advisors, and financial caregivers need a solution that customers actually want to use. Our approach of empowering and including the financial institution has led to tremendous growth over the past four years, so this new infusion of capital will help us reach even more aging Americans and their families.”
— Carefull Co-founder and Co-CEO Max Goldman
“Carefull has emerged as an instrumental solution for financial caregivers and banks alike, and we’re proud to support the company through the next phase of their growth. As younger family members step in to manage their loved ones’ finances, there is an estimated $84 trillion in wealth transfer underway. Financial institutions and advisors are actively seeking out ways to help families through this time of transition while building relationships with their next generation of customers. Carefull’s full-stack financial safety suite is a critical step in solving many of the acute issues in the category, and we’re excited about where the team is headed.”
— Christian Ostberg, General Partner at Fin Capital
