Reset is a public benefit corporation that provides mission-driven technology for a healthier financial future. Pulse 2.0 interviewed Reset co-founder and CEO Matt Dicou to learn more about the company.
Pictured: Reset’s founding team. Matt Dicou (left), Wes Rodriguez (middle), and Brian Mascarenhas (right).
Matt Dicou’s Background
What is Dicou’s background? Dicou said:
“My family is blue-collar and has been for generations. My grandpa on my mom’s side was a commission-only tire salesman. Similarly, my grandpa on my dad’s side immigrated to the U.S. and found work as a bricklayer.”
“My parents were no exception. Neither attended college and I watched my dad work up to four jobs at once while my mom worked the night shift at a call center. For years, their sacrifice was such that they barely saw each other because their busy work schedules overlapped.”
“I knew that if I wanted to attend college, I’d need to pay for it. So I started a small services business that I ended up running for 9 years.”
“Coming from a working class family and being a first-gen college student who paid my way through college, I’ve had a front-row seat to the struggles of the working class. Even while I was working in tech, I was moonlighting as a handyman on nights and weekends to combat the high cost of living in the San Francisco Bay Area.”
“My work at Visa and 7 years of experience in fintech overall has focused on building responsible financial products for families like mine. I took a break from the corporate world in 2021 to go to business school at Stanford to incubate the idea, form a world-class team, and raise the capital needed to help us fulfill our mission: to alleviate how expensive it is to be poor in the U.S.”
Formation Of Reset
How did the idea for Reset come together? Dicou shared:
“Reset was founded by myself, Wes Rodriguez, and Brian Mascarenhas. All of us grew up in either working-class and immigrant families. Seeing how expensive it is to be poor in the U.S., we were inspired to create a transformative product to financially empower families like our own.”
Favorite Memory
What has been Dicou’s favorite memory of starting the company so far? Dicou reflected:
“We were recently featured on the NASDAQ billboard in conjunction with our launch and fundraising announcement, which was a great moment to tell the world about what we had been quietly building. Now, personally using the Reset Visa card and financial companion app to manage my own finances has been a great way to tangibly see our vision come to life. Seeing the reaction from our business partners, families, investors, and customers has been exciting and has reinforced our commitment to the mission of Reset.”
Core Products
What are the company’s core products and features? Dicou explained:
“We have two products that are tightly integrated: the Reset Visa card and a financial companion app.”
“To power both products, Reset connects payroll and bank data, enabling cardholders to combine daily access to their earned wages with streamlined budgeting and financial planning. The card’s spending limit dynamically updates based on the latest income and spending data, allowing users to access their income as they earn it, and, throughout the pay cycle, provides a cushion for recurring expenses that supports responsible spending.”
Challenges Faced
What challenges have Dicou and the team faced in building the company? Dicou acknowledged:
“After Silicon Valley Bank went under last year, it is an understatement to say that there was a storm cloud looming over the banking system and, by association, the fintech space. This was especially true for fintechs like Reset that are launching financial products that require bank sponsorship. We were very careful and thorough in our search for the right bank partner and technology provider, as we know how critical having those direct relationships would be to laying the foundation for future growth.”
Evolution Of Reset’s Technology
How has the company’s technology evolved since launching? Dicou noted;
“Since the launch of our financial companion app, which provides a holistic view of your finances, we have heard consistently from our customers that they want the ability to access their earned income daily (i.e., the ability to transact using the funds). The recent launch of our Visa card enables the seamless integration of this functionality with our app. More to come soon as we continuously invest in meeting the evolving needs of our users!”
Significant Milestones
What have been some of the company’s most significant milestones? Dicou cited:
“Some of our most significant milestones include teaming up with Visa, a world leader in payments by joining their Fintech Fast Track Program.As a result, the Reset card gives ongoing access to earned income that can be used anywhere Visa cards are accepted domestically. Each milestone represents a step forward in our mission to provide responsible financial solutions tailored to the working class.”
Customer Success Stories
After asking Dicou about customer success stories, he highlighted:
“We just launched so more to share here soon, but one quote from a user: ‘‘Using the Reset card has been super helpful for budgeting. Essentially I have been using it for the day-to-day and then allowing any excess from my direct deposit to go into savings. It has been a great overall experience and using it in this manner allows me to save MUCH more money!'”
Funding
After asking Dicou about the company’s funding, he revealed:
“We recently announced our pre-seed fundraising of $2.3 million led by Precursor Ventures, with participation from J4 Ventures, Moai Capital, Endurance Companies, and Pear VC, in addition to other mission-aligned operators in the financial services, technology, and social impact sectors.”
Total Addressable Market
What total addressable market (TAM) size is the company pursuing? Dicou assessed:
“There are 167 million workers in the U.S. There is huge potential to transform how frequently people access their pay and make waiting two weeks for your pay a thing of the past.”
Differentiation From The Competition
What differentiates the company from its competition? Dicou affirmed:
“Banking and Payroll Data: Reset uses both payroll and bank data to help users understand their cash flows and empower proactive financial planning and management.
Employer Portability: Reset stands out by offering workers the choice to go after better or higher-paying jobs while still retaining access to the platform. Reset accomplishes this by removing the need for employer administration of the service. More tools that are tailored for gig workers and those with multiple income sources are coming soon.
Interest-Free and No Monthly or Late Fees: Reset generates revenue from merchants (via interchange fees) each time users make a purchase with the Reset card, enabling the Reset card to have no interest, monthly, or late fees.
Flexible Distribution Model: Reset’s extensible platform unlocks distribution via partnerships with credit unions, community banks, employers, and other mission-aligned organizations.”
Future Company Goals
What are some of the company’s future company goals? Dicou pointed out:
“Looking ahead, we have a very full product roadmap with the same mission to help working-class Americans improve their financial health. We’re committed to driving sustainable growth and making a positive difference in the lives of our users.”
Additional Thoughts
Any other topics you would like to discuss? Dicou concluded:
“Stats illustrating that Reset’s platform is coming at a critical time:
1.) Reset’s platform comes at a critical time, with more than 65% of Americans living paycheck-to-paycheck and a staggering majority struggling to cover basic expenses given high inflation (Source).
2.) Nearly 90% of Reset’s target users primarily utilize debit cards, often due to a lack of access to traditional types of credit or due to poor experiences from credit cards in the past (Source: Reset Financial Health Survey – October 2022)
3.) To further show the extent of the problem, 50% of financially vulnerable individuals have less than one week of financial savings, and 84% have less than three weeks (Source: Reset Financial Health Survey – October 2022)
4.) While trying to make ends meet and waiting for their paycheck, our target users often incur significant fees from predatory loan alternatives, overdraft, and late bills. The net result is that financially vulnerable Americans are paying ~5.5x more fees than those who are financially healthier (Source: Financial Health Pulse: 2021 US Trends Report – October 2021).”
